Should I apply for a BTO using my credit card for the downpayment?
My gf graduated last year and she’s earning an above average salary. I just graduated this year and I’m working for a Chinese tech company. I’m fortunate enough to earn quite a good salary but this means that our combined income is only slightly below the BTO combined income ceiling.
I’m worried that we will not be able to apply for a BTO next year because of our yearly increment but we also do not have enough cash for a downpayment yet. Both of us have no savings because we have been trying to clear our student loans. Our parents are cash-strapped themselves so that is out of the question.
I can only think of one way of paying the downpayment, and that is by using our credit cards with the staggered downpayment scheme. Our credit card limits are just enough for it but I’m afraid of credit card debt too… If everything goes well, we will be able to clear the credit card debt in 4 months. Should we take the risk or just wait for a resale flat next time?
Here are what netizens think:
- Have you secured an ideal queue number for selection? If you have yet to, apply first. Getting a unit that you and your partner like needs luck and time. By then, staggered downpayment with OA is very possible given both of you are maxing out CPF contributions and in your 20s (OA contrib highest). If selection is coming soon (congrats!), or your partner’s income does not attract CPF, check if a personal loan offers lower interest. Discipline will be very key, as there must be a reason both of you have no savings despite earning above average incomes. Loan exactly the amount you need after fees, and set up a standing instruction on your paydays to make payment for the loan.
- What a question to ask. With a combined starting pay of close to 12k and you are asking such a question which the answer is so obvious? What are you trying to prove here? A BTO, 4 room is maybe 400000? 5 percent down payment is only 20000. Your OA after working for a year with combined income don’t have? Even if so, not married yet presume no kids. Your combined monthly according to yourself is almost 12000. Two months is all you need. So, is it even a problem for BTO? Seriously, what’s your point?
- If I’m not wrong, you cannot use credit card for downpayment. Since you’re able to clear credit card debt in 4 months, why not you wait for awhile to save up cash before you and your partner apply for bto? If not, you can look into staggered downpayment.