Hi,
It is never too late to start planning.
You should take note of the downpayment required. If you are taking an HDB loan, you must prepare 15 per cent in cash and/or CPF.
If you are taking a bank loan, you must prepare 5 per cent in cash and 20 per cent in cash and/or CPF.
Depending on your gross monthly household income, you may be eligible for the Singles Grant of up to $25,000, EHG (Singles) of up to $40,000 and Proximity Housing Grant of up to $15,000.
When buying an HDB resale flat, you will be subjected to the Mortgage Service Ratio (MSR) and Valuation Limit (if taking an HDB loan). Your MSR must not exceed 30 per cent of your gross monthly income.
You will be subjected to the MSR, Valuation Limit and Withdrawal Limit (if taking a bank loan).
Ideally, you should pay your mortgage in cash as paying it via your CPF will mean you will have to deduct it from your sale proceeds with accrued interest should you wish to sell your HDB flat one day.
Also do note, if you are buying an HDB resale flat with fewer than 60 years of lease, you will be subjected to a pro-rated CPF usage.
Sincerely,
Mohamad Khalil
Bachelor of Arts (Communications)
E: realtor@khalilrealtor.com
Mobile:
+65 8201 9254
Website: www.khalilrealtor.com
Read More
