HDB concessionary loan – HDB for sale in Singapore

HDB concessionary loan – HDB for sale in Singapore

HDB for sale in Singapore – HDB provides housing loans at concessionary interest rate to eligible flat buyers, subject to HDB’s credit assessment and the prevailing HDB mortgage loan criteria. The HDB concessionary interest rate is at 0.1% above prevailing CPF Ordinary Account Interest Rate. It is revised quarterly in January, April, July and October each year, in line with the revision of CPF interest rate.

HDB concessionary loan conditions

The maximum loan provided by HDB is capped at 90% of the valuation or purchase price, which ever is lower, subject to full utilization of CPF and credit assessment. The HDB Loan Eligibility Letter (HLE) will indicate the maximum loan eligible from HDB after taking into consideration the full utilization of CPF and credit assessment of the buyer. HDB for sale in Singapore.

For example:

Buyer wants to take his 1^st HDB loan to buy a HDB 4rm flat at purchase price of $400K. The valuation is also at $400K. His balance CPF in the ordinary account (after paying for legal fees and stamp fee) is $160K. The calculation for the max HDB loan after full utilization of his CPF is as follows:

(Whether the buyer can get $240K loan is also subject to credit assessment)

The buyer has to pay upfront 10% of the valuation or purchase price, which ever is lower, either by CPF or cash. Any price above valuation must be paid by cash.

The terms of a HDB concessionary loan are as follows:

• Maximum  loan term – 30 years
• Maximum repayment period is 65 years less buyer’s age (or average age if there are two or more borrowers).
• Interest rate based on monthly rest. It is currently pegged at 0.1% above the CPF Ordinary Account interest rate.
• Prevailing interest rate revised quarterly.
• Loan-to-income ratio is 40%
• Loan ceiling – 90% resale price or market valuation, whichever is lower.

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