Here's all you need to know about HDB grant and HDB loan calculator
A. HDB Grants
1. Types of HDB Grants
CPF (or HDB) Housing Grants are given to lower-and center salary families to help make their home buys more moderate.
The grants will be completely credited into a candidate's CPF Ordinary Account after booking and be utilized to counterbalance the flat price, thus bringing down the home loan required.
Provided that you're applying for an HDB unit as a couple (both of you are Singapore residents), and purchase this for the first time, below is an overview of different HDB grants you can consider:
2. HDB Grant's Eligibility & Procedure
# 1 Enhanced CPF Housing Grant
- Grant Amount: Up to $80,000
- Eligibility: First-time property holders purchasing new or resale flats, family salary of maximum $9,000
The new Enhanced CPF Housing Grant replaces both the Additional Housing Grant and Special CPF Housing Grant. It gives first-time property holders extra subsidy based on their monthly family salary, and applicable to both HDB BTO or resale.
# 2 Family Grant
- Amount: Between $30,000 to $50,000.
- Eligibility: First-time candidates purchasing a resale HDB or EC
First-time buyers in Singapore need to pay according to the market cost for their resale HDB, which is not the case for BTO purchasers who are offered discounted prices. Market cost in this case is controlled by both what purchasers are eager to pay, and what merchants are anticipating.
Be that as it may, a first-time purchaser of resale level and EC do meet all requirements for the Family Grant. To meet all requirements for the grant, the month-to-month family salary on average must be under $14,000, up from $12,000.
# 3 Proximity Housing Grant
- Amount: $20,000 in the event that you live inside 4km of where your family members stay. $30,000 in the event that you live with your family.
- Eligibility: Homeowners purchasing resale HDB in the same area or within 4km of where their parents are staying, or living in the same apartment as them.
In the event that you are purchasing a resale level inside 4km of where your family members are staying, or are planning to move in with them, you will be qualified for the Proximity Housing Grant (PHG) of up to $30,000.
For first-time homebuyers procuring up to $12,000, the PHG is given notwithstanding the CPF Housing Grant (Resale level) and the AHG.
The PHG doesn't have a maximum income restriction and isn't limited to only first-time homebuyers, unlike the CPF Housing Grant and AHG. This implies that most homebuyers will be eligible for PHG when purchasing a unit to live with or near their family.
B. HDB Loans Calculator
1. Types of Financing Loans for HDB
HDB concessionary loans are an arrangement only for Singaporeans, with the current interest rate of 2.6%. However, there're certain limitations to this:
- It applies to HDB units
- There has to be at least one Singaporean purchaser (citizen)
- Buyers' month-to-month pay must not surpass $12,000 (or $18,000 for extended families)
- Buyers must not possess any private home (in Singapore or abroad)
- Buyers must not be a receiver of more than two previous HDB loans
- Buyers have not discarded their private property within 30 months before the loan application
- Buyer's month-to-month salary must not surpass $6,000 for singles purchasing a 5-room or littler resale level, or 2-room new level in a non-develop estate under the Single Singapore Citizen (SSC) Scheme
A bank loan regularly has fewer limitations than an HDB loan – the bank generally needs to run a credit check and that is pretty much all.
Bank loan interest can change often, which makes it sometimes lower or higher than HDB loan's 2.6% relying upon the current SIBOR/SOR rates.
There's likewise a couple of other significant differences between them, summarized in this below table:
Source: MoneySmart
2. HDB Loan Eligibility
The major contrast between a bank loan and an HDB concessionary loan is the eligibility criteria that you need to meet. As for a bank loan, generally, all you'll require is a positive credit score, yet HDB loans accompany a few conditions you have to meet so as to be qualified.
In the event that you are a first-time candidate, you'll need to meet these requirements, as per HDB:
Source: PropertyGuru
Note that if your income flow isn't fixed salary - for instance, you do temporary jobs, or freelance - chances are that only 70% of your month-to-month payment is considered for the loan application.
Once you've met all the HDB loan prerequisites, you would then be able to apply for the HDB Loan Eligibility Letter (HLE). Otherwise, in case you're yet to confirm your choice, you can participate in an HDB questionnaire to see if you're really qualified.
Click here for a more detailed list of considerations for HDB loan.
3. Application for HDB loan
- Before applying for a BTO level, you need to present a HDB Loan Eligibility (HLE) Letter when you book your flat and not at the consenting to of arrangement (which will be 4 months later than that).
- Once your application for HLE has been endorsed, you can continue to apply for your unit.
- Your HLE letter's validity lasts for a half year
- Most BTO unit take 2-3 years before completion so mostly your first HLE will not be valid by that time. You'll be prompted to apply for a second HLE. In the event that your HLE application doesn't cover 90% of HDB price at this stage, you need to top up by CPF/cash.
- If you can't top up, you should either take a bank loan or relinquish your unit and lose the 5% up front installment you paid in addition to other initial expense
4. HDB Loan Calculator
Do try to estimate your HDB loan before beginning filing your application. The maximum loan that HDB purchasers can take on, comprehensive of mortgage and any other loans, is 30% of month-to-month salary. For instance, if you and your companion gain a consolidated $10,000 yet use $1,0
For instance, in the event that you and your mate gain a joined $10,000 and use $1,000 every month to repay a vehicle loan, you can take on a mortgage with a maximum monthly installment of $2,000 ($10,000 x 30%- $1,000).
Besides, a non-fixed income such as a part-time job or freelancing earnings will be considered a 'hair cut', where just 70% of these earnings is qualified for the loan. Going back to the previous example, this would imply that the couple can repay a maximum of $1,100 for their monthly installment ($7,000 x 30% – $1,000).
You can also check out some of the free HDB calculators available at these sites:
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