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I currently own a 5-room HDB BTO and am less than 2 years away from MOP. My next plan is to purchase a condo after MOP. Currently, i have enough cash to pay up for my existing HDB flat. However, i am unsure whether I should pay up for my HDB fully,or keep the savings to finance my condo dream. If i pay for my HDB now, then i may have to delay purchase of condo another 2 years after MOP. But, I believe if i can buy right after MOP, the condo price should be cheaper as property market is currently weak and may take some years to pick-up. My concern is the bank loan for the condo.
A) What is the percentage of bank loan that i will be able to get to finance a condo if i have fully paid for my HDB?
B) What is the percentage of bank loan if i have not fully paid up for my HDB? Currently, i pay an instalment of $1k per month of my HDB with CPF only, and have no car or personal loan. Will bank factor in the HDB installment as a debt and reduce loan amount for condo?
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4 Answers

Robbie Chen Chee Howe
Replied
Hi,

Apart from the standard TDSR requirements, you will have to take note of the LTV (Loan-to-Value) requirements.

If your condo is your second mortage loan, you can only borrow up to max 50% of the purchase price/valuation price, whichever is lower.The rest of the 50% will be the downpayment, out of which 25% has to be in Cash.

If you have fully paid your HDB, you can loan up to max of 80%, with the 20% downpayment (5% Cash, 15% CPF), subjected to your CPF meeting the half-minimum sum.

Do take note of ABSD for second property too, provided it remains in place 2 years later.

Should you need any further assistance in matters relating to property, please contact me at my mobile 9748 6305  . I will be happy to assess and share with you the possibilities for you and your partner in the current market.

Thank you.

Best regards,
Robbie Chen
 9748 6305 
PropNex Realty Read More
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Ivan Ng
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Hi,

With current regulations, the max loan attainable is dependent on the number of outstanding mortgage loans at hand. If its 1 home loan outstanding, the 2nd loan will capped at max 50%. If theres no home loan outstanding, max loan will be 80%.

Yes any debt obligations, including home loan installments, are factored into the TDSR calculations.

May I have more info and requirements about your plans so to make better recommendations? Thanks and look forward to value-add to your housing plans.

Warm Regards,
Ivan Ng ERA ASAP
(ASk Anything Property)
Proactive. Sincerity. Feedback.
SMU BBM (Finance), Magna Cum Laude

Email: Ivanng10@gmail.com
Contact: (+65) 97432395 
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Mark Ng S W
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Hi do contact me at 97970200  or ngsiewwhye@gmail.com to discuss more

Mark, your RIGHT choice
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GAN ENG JOO ONASSIS
Replied
Hi,

RE: SINGAPORE PROFESSIONAL REALTOR SERVICES BY “ONASSIS GAN” – SGAGENT.COM

What even consider to stretch your budget. Will advise you to clear your existing HDB flat then consider for second property.

Onassis Gan | R021244C | Today’s SG Professional l SGAgent.com & SGRealtor.com
ACTA (Full); PDCE (Singapore); MSc BIT(Middlesex); BBA (South Australia)

Singapore Line : (+65) 92222389 
Malaysia Line: (+60) 111-0788889
Email: onassis@sgagent.com / sgrealtor.com
Skype: incomecare

SGAUCTION.COM & SGDEAL.COM - "ONASSIS GAN" Trusted 100% by SG Property Owners- Exclusive Sales Team Read More
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