Addy and I just got our Housing Loan Eligibility letter yesterday after sending in our letter and relevant documents recent Tuesday (20Oct09). It took only 1 working day to process. I even got an sms from MyECitizen that my loan has been approved. Great!
With our combined income, we are entitled to a maximum loan of about $510,000 over 30 years with monthly payments of about $2,100. Our maximum eligible loan is based on our combined income of about $5,400 if you are keen on a ballpark figure. You can calculate your own figure from the HDB website. Link here for convenience.
I have an excel spreadsheet that calculates that the optimal loan we ought to take (from our current income) is about $260,000. This is based on a loan period of 25 years (till i am about 55 as advised by HDB) and a monthly payment of about $1,472 that does not require us to pay more outside our CPF contributions for now. Once I have made the excel file more "readable, I hope to upload it for reader's use as well.
Do note the following HDB guidelines and notes (I gathered for simplicity):
The maximum loan amount that may be granted depends on:-
(a) maximum repayment period;
The maximum loan repayment period is 65 years minus the buyer’s age or 30 years, whichever is shorter.
Buyers can fully redeem or make a partial capital repayment of the loan by giving one month’s prior written notice to HDB. For redemption after complete disbursement of loan, the buyer should pay the whole of the Principal sum then outstanding and all other monies due including interest up to the date of payment. Each partial capital repayment of the loan shall not be less than $500.
(b) applicable interest rate;
Computation of the maximum loan will be based on the prevailing interest rate which may be revised from time to time. The interest on the HDB loan will be computed on a **monthly rest basis or such other basis as the HDB may decide. The HDB concessionary interest rate is pegged at 0.1% point above CPF Ordinary Account Interest Rate. It is revised quarterly in January, April, July and October each year, in line with the revision of CPF interest rate.
(c) monthly instalments; and
This is capped at 40% of the gross monthly income.
You can use your CPF savings and /or cash to service the monthly instalments of the housing loan. The monthly instalment is payable on the first day of each month. If the instalment is not paid within the month, a late payment charge will be imposed based on the outstanding instalment as at end of the month. Any payment received by HDB will first be used to settle the outstanding late payment charges. Any balance will then be applied towards the payment of the other outstanding charges.
Buyers paying the monthly loan instalments partially or fully by cash, must pay them through GIRO.
If paying using their all their CPF, buyers must use all the available savings in their CPF Ordinary Accounts [after reserving an amount required for (1)payment of stamp, (2)registration and (3)conveyancing fees and (4)CPF Home Protection Insurance Premium (if applicable)] for the purchase of or taking over the flat before any housing loan is granted by HDB.
(d) loan ceiling.
The loan that can be granted for the purchase of an HDB flat is subject to:
**monthly rest basis - Your loan interest for the current month will be calculated based on the previous month’s outstanding balance (which consists of principal and interest not paid, if any). The advantage of monthly rest is that you do not have to worry about making instalments at a certain date, as long as the payment comes in at month end.
Technorati Tags: hdb loan, what can you pay for using hdb loan, singapore housing loan, getting a hdb loan, how much hdb loan, hdb loan eligibility
With our combined income, we are entitled to a maximum loan of about $510,000 over 30 years with monthly payments of about $2,100. Our maximum eligible loan is based on our combined income of about $5,400 if you are keen on a ballpark figure. You can calculate your own figure from the HDB website. Link here for convenience.
I have an excel spreadsheet that calculates that the optimal loan we ought to take (from our current income) is about $260,000. This is based on a loan period of 25 years (till i am about 55 as advised by HDB) and a monthly payment of about $1,472 that does not require us to pay more outside our CPF contributions for now. Once I have made the excel file more "readable, I hope to upload it for reader's use as well.
Do note the following HDB guidelines and notes (I gathered for simplicity):
The maximum loan amount that may be granted depends on:-
(a) maximum repayment period;
The maximum loan repayment period is 65 years minus the buyer’s age or 30 years, whichever is shorter.
Buyers can fully redeem or make a partial capital repayment of the loan by giving one month’s prior written notice to HDB. For redemption after complete disbursement of loan, the buyer should pay the whole of the Principal sum then outstanding and all other monies due including interest up to the date of payment. Each partial capital repayment of the loan shall not be less than $500.
(b) applicable interest rate;
Computation of the maximum loan will be based on the prevailing interest rate which may be revised from time to time. The interest on the HDB loan will be computed on a **monthly rest basis or such other basis as the HDB may decide. The HDB concessionary interest rate is pegged at 0.1% point above CPF Ordinary Account Interest Rate. It is revised quarterly in January, April, July and October each year, in line with the revision of CPF interest rate.
(c) monthly instalments; and
This is capped at 40% of the gross monthly income.
You can use your CPF savings and /or cash to service the monthly instalments of the housing loan. The monthly instalment is payable on the first day of each month. If the instalment is not paid within the month, a late payment charge will be imposed based on the outstanding instalment as at end of the month. Any payment received by HDB will first be used to settle the outstanding late payment charges. Any balance will then be applied towards the payment of the other outstanding charges.
Buyers paying the monthly loan instalments partially or fully by cash, must pay them through GIRO.
If paying using their all their CPF, buyers must use all the available savings in their CPF Ordinary Accounts [after reserving an amount required for (1)payment of stamp, (2)registration and (3)conveyancing fees and (4)CPF Home Protection Insurance Premium (if applicable)] for the purchase of or taking over the flat before any housing loan is granted by HDB.
(d) loan ceiling.
The loan that can be granted for the purchase of an HDB flat is subject to:
| Sales Type | Loan Ceiling* |
| Direct purchase flats | 90% of the purchase price |
| Resale flats | 90% of the resale price (market value + COV) or 90% of the market value (sometimes owners sell below valuation), whichever is lower |
**monthly rest basis - Your loan interest for the current month will be calculated based on the previous month’s outstanding balance (which consists of principal and interest not paid, if any). The advantage of monthly rest is that you do not have to worry about making instalments at a certain date, as long as the payment comes in at month end.
Technorati Tags: hdb loan, what can you pay for using hdb loan, singapore housing loan, getting a hdb loan, how much hdb loan, hdb loan eligibility
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