I can’t afford my BTO
So I just got my HDB loan approved, but they only allowed me to loan up to a max of $180k. Our current gross income is about $5k at the moment, so is that normal?
How can I increase the loan amount? We just want a basic $400k house, but it seems like even with the loan I’ll have to pay $100k just to be able to afford it.
How do people even afford the $700k properties sia, don’t you still have to vomit out an additional $200k even with the loan?
No I have not even gotten a queue number yet. This is my first time applying and I haven’t committed to my application yet, yes I’m a student.
Yes I did try all the HDB calculators. Our income will be fluctuating over the next few years, which is why I am asking. I’m just curious how people even afford a $700k house especially as a first time applicant
Netizens’ comments
With a $5k gross income, HDB should be able to loan you around $220k with a $40k EHG and no self topup. Even without EHG, the wait time means you have 4-5 years to save up for the down payment (for $40k, that’s less than $1k a month in a bank account that doesn’t get interest). If you stashed $40k and EHG $40k, it’s even better, you can literally get your $400k basic HDB.
I don’t want to sound harsh, but it seems that you BTO without planning your finances first. HDB has all these online calculators for you to play, before you submit your application and HDB is transparent about price ranges when you apply for BTO ballot. HDB didn’t pull a fast one, you had all the info at the first step.
Your choices are: withdraw from the BTO, get a smaller/less desirable flat (low floor, 3-room) or appeal to MP (most likely MP tell you get 3-room flat).
As to how people can afford $700k flats? The median Singaporean household income is like $9k a month and people do save up for downpayment before buying a flat, resale or not. $9k a month gross allows you to loan $595,100 and with a downpayment of $100k (save $1.6k a month for 5 years?) on a HDB loan, it’s possible to get than $700k home.