LTV & tenure for bank loans of HDB flats – HDB for sale in Singapore
HDB for sale in Singapore. With effect from 28 August 2013, the maximum tenure of new housing loans and re-financing facilities granted by banks for the purchase of HDB flats (including DBSS flats) will be reduced from 35 years to 30 years. New loans with tenures exceeding 25 years and up to 30 years will be subject to tighter loan-to-value (LTV) limits.
For bank loans of HDB flats without outstanding loan, the LTV will be capped at 80% of the resale price or valuation price of the flat, whichever is lower,
– if the loan tenure does not exceed 25 years; and
– the loan period does not extends beyond the retirement age of 65 years.
The minimum initial payment is 20% of the HDB market valuation or resale price, whichever is lower, as follows:
- First 5% of purchase price or valuation, which ever is lower, must be in cash.
- Balance 15% (can use CPF savings or CPF Housing Grant or cash)
The difference between valuation price and the purchase price is the Cash-over-Valuation (COV) portion where the buyer has to pay fully in CASH. HDB for sale in Singapore.
If the bank loan tenure should exceed 25 years (up to a max of 30 years) or if the bank loan period should extend beyond the retirement age of 65 years, the LTV limit for the bank loan will be 60%. HDB for sale in Singapore.
Where a borrower applies for a re-financing facility in relation to the purchase of a HDB flat or DBSS flat, the sum of the tenure of the re-financing facility and the number of years since the first housing loan granted to the borrower for the purchase of that flat was first disbursed, cannot exceed 30 years.
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