How Much Can You Borrow For Your Home Loan?
by developer on May 27, 2014
credits: https://www.singsaver.com.sg/blog/how-to-buy-a-house-in-singapore
What is HDB Concessionary Loan?
HDB offers housing loans at a concessionary interest rate to flat buyers (not applicable to Executive Condominiums). The loan is subject to eligibility conditions such as income, age, family members, and more. It is also subject to the Loan-To-Value (LTV) limit and your Total Debt Servicing Ratio (TDSR).
Read more: How to Qualify and Apply for an HDB Loan?
Can I use all my CPF savings to buy an HDB flat?
The amount of CPF Ordinary Account (OA) savings you can use is subject to the CPF housing limits, namely the Valuation Limit (VL) and Withdrawal Limit (WL).
The VL refers to the valuation price or purchasing price of your HDB flat, whichever is lower. You can use your OA savings to finance up to the VL of your flat. If you would like to request to withdraw more of your OA savings, you can – but you must first ensure that you fulfil the Basic Retirement Sum (this amount varies depending on which year you turn 55).
The WL is 120% of the VL. This is the absolute maximum amount of OA savings you can use to finance your flat. Anything above the WL will have to be funded by cash.
You can use this CPF Housing Withdrawal Limits Calculator to help you estimate when you will reach your CPF withdrawal limits for housing.
Can private property owners buy HDB flats?
As of 2010, private property owners must sell off (“dispose of”) all their private properties (local or overseas) within 6 months of purchasing a resale HDB flat.
Private property owners who are interested in a BTO flat must first dispose of all their private properties at least 30 months before they apply for a BTO flat.
This translates to a pretty long waiting time in between homes.
Can I own more than one property in Singapore?
There is no limit to the number of private properties you can own as a Singapore Citizen or PR.
HDB owners who wish to purchase private property can only do so after the minimum occupation period of 5 years. This means that if you want to own both an HDB flat and private property, you must first purchase an HDB flat and occupy it for at least 5 years before investing in a private property (local or overseas).
You cannot own more than one HDB flat. If you purchase a second HDB flat, you must dispose of the first within 6 months of the second purchase.
| OWNERSHIP RESTRICTIONS FOR HDB FLATS | |
|---|---|
| Criteria | Details |
| Income ceiling | There is no income ceiling for buying an HDB resale flat. However, you may wish to note that there are income ceilings for CPF Housing Grants and HDB housing loans. |
| Ownership/interest in HDB flats | If you or any persons listed in the application owns an HDB flat, you must dispose of the HDB flat within 6 months of the resale flat purchase. |
| Ownership/ interest in property in Singapore or overseas other than HDB flats | If you or any person listed in your resale flat application owns a private property either locally or overseas, you must dispose of all private properties before or within 6 months of the resale flat purchase.
Note: If you own a private property, you are not eligible for a CPF Housing Grant or an HDB housing loan. |
Source: Housing & Development Board
