Housing Loan & CPF Housing Loan – HDB Housing Loan

1. Eligibility for HDB Housing Loan (HLE). ” Who can apply housing loan from HDB? 
2. Requirement for taking 2nd HDB Housing Loan (HLE). ” What  you need to know if you applying HLE for the 2nd time?”
3. Calculation for Housing Loan (HDB flat) – HLE/ Bank Loan. ” How much you can loan from HDB/ Bank? ”

4. Calculation for Housing Loan (Private Residential) – Bank Loan. ” How much you can loan from Bank? ”

ligibility for HDB Housing Loan – HLE

You can apply for HDB housing loan if you and your essential occupiers meet ALL these conditions.

        At least one buyer is a Singapore Citizen

        Never taken any HDB housing loan before / taken once only 

        Gross monthly income does not exceed $12,000 for families, $6,000 for single buyer who buy 5-room or smaller resale HDB flat

        Must not own or have disposed any private residential property 30 months before the date of application for HLE letter

        Remaining lease for the HDB flat must have 60 years or more

         

* Click here to see if remaining lease of the HDB flat is less than 60 years. Loan amount might reduced / not able to loan from HDB 

equirement for taking 2nd HDB Housing Loan – HLE

You have to use FULL CPF proceed from the sale of your current HDB flat to your next flat.

You may keep $25,000 or half of the cash proceed (whichever higher) from the sale of your current HDB flat.
*HDB will take into account the remaining part of the cash proceed when determining the amount of the 2nd loan to be granted to you.

alculation for Housing Loan – HDB Flat 

There are 4 factors that HDB will take into consideration when buyers apply for the housing loan, either HLE /Bank loan.
Approval of the loan amount will be calculate based lowest amount among these 4 calculations. 

Whichever lower

TDSR refers to the proportion of your monthly
gross income that is spent on debt obligation. 
According to MAS policy, must not exceed 60%         

MSR refers to the proportion of your monthly 

gross income that is spent on mortgage repayment.  
According to MAS policy, must not exceed 30%          

3. Purchase price of the purchased property

Max loan: HDB Loan (HLE) = 90%

= 75% 

Max loan: HDB Loan (HLE) = 90%

Bank Loan 

 = 75%   

1. Total Debt Servicing Ratio (TDSR)                                               

2. Mortgage Service Ratio (MSR)                      

4. Valuation of the purchased property   

Bank Loan

alculation for Housing Loan – Private Residential 

There are 3 factors that bank will take into consideration when buyers apply for the housing loan.
Approval of the loan amount will be calculate based lowest amount.   

Whichever lower

1. Total Debt Servicing Ratio (TDSR)

TDSR refers to the proportion of your monthly
gross income that is spent on debt obligation.   

According to MAS policy, must not exceed 60%

Max loan: Bank Loan = 75%*

Max loan: Bank Loan = 75%* 

*Refer to LTV chart, % can be vary due to borrower profile.

2. Purchase price of the purchased property         

 3. Valuation of the purchased property

CPF 

1. Seller at/ above 55 years old. What will be the different if I sold my house at 55 years old or older? 
2. Use of CPF for 2nd / subsequent properties – For Private Residential

eller at / above 55 years old

For seller who sold a property at age 55/ above, the only different is the CPF. There are 2 types of cash you will get from: –
Cash Proceed from sale of property & Refunded Cash from CPF.

Cash Proceed from Sale of Property (if any)

Selling price minus outstanding loan, minus total used CPF + interest that used for the sold property. 
The total will be the cash you will get after selling your property.

Cash Proceed from Sale of Property (if any)

=

Property Sold Price

Outstanding Loan

Used CPF + interest

Refunded cash from CPF (if any)

Used CPF + interest that used for the property minus retirement shortfall, minus property pledge will be the cash that CPF will refund to you. 

Refunded Cash from CPF (if any)

=

Used CPF + interest

Retirement Shortfall

Property Pledge

Total CASH you will get from selling a property  = Cash Proceed + Cash refunded by CPF

To purchase next house after selling, your CPF can be use for next purchase will be your current ordinary account (OA) + property pledge

Budget for next house = Cash + CPF + Loan

se of CPF for 2nd / subsequent properties 

Scenario 1:
When your Special Account (SA) is less than half of minimum sum*:
CPF can be use = OA – [ (Minimum sum / 2) – SA ]

Scenario 2:
When your Special Account (SA) is more than half of minimum sum*: 
You can use all the money is your Ordinary Account (OA) for your 2nd / subsequent properties.

* For buyer below 55 years old, minimum sum for Year 2018 is $171,000.
* For buyer 55 years old or above, minimum sum refer to the year when the buyer reach 55 years old. 

 

Author:

Cheryl Lum HP: 86661235 / 90228783 CEA: L3002382K / R060546A Email: enquiry@sgpropertytop.com Office:150 Orchard Road, Orchard Plaza #05-32 Singapore 238841