HDB BTO financing

A very important point to note is that there is no disbursement of loan for BTOs until TOP.

Look out for loan packages that come with a lock-in period as the lock-in commencement typically starts from the first disbursement of loan (which will probably take place some 3 to 5 years down the road depending on how long the flats take to build).

This means you will not have the flexibility to refinance the loan when the property obtains TOP - even if your existing loan terms are unfavorable - since you are bound to the loan package.

There are banks offering loan packages without lock-in periods for BTOs. Look out for those!

~ Colin Lim

• HDB loan can let u borrow 90% of LTV, while bank 75%

• HDB u can use full CPF without any $$$ from your pocket, bank need at least 5% cash

• bank loan fixed 2.6% p.a. Interest, bank less than 2% after lock-in period need to do repricing to maintain low interest.

OPINON

if you can handle the 5% cash down payment, use bank loan. Other than lower interest.

i believe u will change house 1 day, hardly i see people live in 1 house forever, tend to upgrade. if you want to use the HDB loan get a very big HDB, 90% is only for the 1 time. Subsequent HDB will take 50% of your cash proceed, then determine how much to loan you.

(Not a guru)