Updated: Dec 27, 2019
HDB BTO, HDB Home Loan Calculator Singapore
Buying a property is probably the biggest financial commitment in everyone’s lifetime. Today, we are going to discuss a hot topic very often posted by HDB home owners, whether he’s buying a HDB BTO flat or resale HDB flat. In this blog, we will be providing you with all relevant information on HDB resale price in Singapore, HDB loan and other relevant aspects. You will also get to know about HDB home loan calculator.
Every Singaporean will be allowed to take up a HDB concessionary loan twice on their HDB flat purchase, assuming he/she fulfils the eligibility criteria. Some of the key points to highlight for HDB loan are that the loan to value (LTV) is up to 90% and the initial 10% downpayment can be fully paid using CPFOA funds. There’s no penalty for early repayment and home owners can always go down to HDB branch office to make the payment arrangement. Most people have the impression that HDB rates are on a guaranteed basis with no chance of rate hike. While we do agree that HDB rates are relatively “stable”, they are NOT guaranteed as their rates are pegged to CPFOA interest rate which will be reviewed by the board on a quarterly basis. Another impression that most home owners had is HDB will be more lenient towards home owners who default HDB loan instalment payments. However, home owners may like to take note that there is a 7.5% interest being late payment fee per year imposed by HDB.
For bank loans, the loan to value (LTV) is up to 75% in which 5% downpayment has to be paid in cash and the remaining 20% via CPFOA funds or housing grants. With over 60 home loan packages offered by 16 banks, a dedicated mortgage broker will be able to work with you to get a lower interest rate than HDB loan, at this current market climate. Also, for those who plan to apply for a second HDB loan, do note that the loan amount has to be reduced. You may keep only $25,000 or half of the cash proceeds, whichever amount is higher, from the sale of your current or immediate past HDB flat. There’s some home owners who may like to opt for a bank loan instead as they are able to keep more cash proceeds amount from the sale of their current or immediate past HDB flat. Home owners also may like to consider factors like the resale selling price, outstanding loan amount, any levy imposed, additional expenses such as renovation, movers etc. Hence, you may like to keep all these in mind before putting up your HDB for sale in the open market.
In summary, bank loan seems to be more attractive in terms of interest rate savings. However, home owners may need to review and refinance their home loans in every 2-3 years. Talk to any of our friendly mortgage advisory consultants and get your figures right with our HDB loan calculator.