Purchasing HDB Flat (BTO, DBSS, Resale): How Much Can You Afford and Borrow?

Posted by Sean Lim on May 19, 2017

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This is the latest matrix showing the financing options for HDB flats in Singapore. You can take up a HDB loan or a bank loan. There are eligibility conditions, TDSR and MSR factors. This article includes the latest announcement by HDB on 27 August 2013 on mortgage tenure and MSR.


  • To be eligible for HDB Loan, your average gross monthly household income cannot be more than:-

    • $10,000 for families

    • $15,000 for extended families

    • $5,000 for singles

  • If you do not qualify for HDB Loan, your next option is HDB Bank Loan.

  • For HDB and HDB Bank Loan, if LTV is 80% ,Loan Tenure is up to 25 years or age 65 whichever is earlier. If you borrow 60% or lesser from a bank, the Loan Tenure is up to 30 years and capped at age 75 whichever is earlier.

  • Minimum cash downpayment  for  80% LTV is 5% while 60% LTV is 10%. The rest of downpayment can be from CPF OA.

  • The age of all borrowers used to calculate loan tenure is based on income-weighted. It is not a simple average income of borrowers. It will be adjusted according to the age and income of each person. So it will be biased towards the higher earner and/ or older person.

  • Assessment of borrowing limits for HDB loan and bank loan are based on these similar factors:

    • 60% of Total Debt Servicing Ratio (TDSR)

    • 3.5% Medium-term Interest Rate

    • 30% Mortgage Servicing Ratio (MSR)

For quick assessment, check out the Singapore TDSR calculator and MSR calculator

 


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Topics: HDB

Written by Sean Lim

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