Advices for BTO, Loans (HDB vs Bank) and Credit Score as a NSF?

Hi Darryl,

Great questions and it sounds like you've already put in a lot of thought into this, so kudos on your forward planning and foresight!

The great thing about the BTO is that yes, you do get more grants when you apply early (because of your smaller incomes) and you have the opportunity to build up your careers and save money over the next 3-4 years so that you're more financially settled by the time you are married and collect your keys.

At this stage, I feel the main consideration is for both of you to be open with one another about what kind of BTO unit you can afford - location and size are important factors to consider.

A 5-room flat in a prime location may still be just out of your reach, even after your increase in income after 4 years, due to your relatively younger age. Should you not qualify for the maximum loan, you would need to fork out a hefty downpayment.

I would suggest applying for a HDB loan (HLE) first as there is no upfront cash downpayment needed when you book the flat. You always have the option of a bank loan several months before collecting your keys, or refinancing to a bank loan several months after the key collection.

All the best! :)

Hallo,

I'd encourage you to think through your situation and ask yourself if you're really in such a rush to get a BTO and saddle yourself with liability even before you ORD / graduate university (if you're planning to) / start work.

Having more grants is always a good thing, but if you can't afford the house without the grants, you can't afford the house, period.

Separately, building credit score is a good thought, but credit score alone doesn't determine loan quantums. Your wage will be taken into account as well. So there's value in working at increasing your income.