HDB loan extremely insufficient for BTO flat. Understand more salary means more loan, how to be sure if we get better salary, we able to get the loan amount needed?

Im a SC and husb newly PR (2nd year, hence not much CPF OA) . Recently both worked part time as I need to look aft kids (getting fixed 1k a month) and for him, 2 part time jobs but able to earn gross between 2.7k to 3.2k a month. He works part time as need flexible timing to visit elderly parents in Malaysia. Unfortunately for 1 of the job, they have this system where by (after 7 hours of work, the rest is OT) so in his payslip usually (basic is $1200, OT is $1000). And HDB doesnt see this OT thing and only consider basic. Because of this, our loan is so little. (Only get 83k, needs 190k) If I continue my part time and get fixed 1.5k, and he change job or smth and earns ard fixed 3.k at least, how much roughly loan I can get ? I need to sign agreement soon, and flat will be ready Sept 2024 ): i still have chance? Im so worried, i waited 6 years for a house

Discussion (3)

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Ace

20 Feb 2023

HDB has to consider the buyer(s)'s ability to pay for the home loan instalment and doesn't become a liability to the society/nation.

Either increase income (ability to pay instalment should be improved) or choose a smaller flat (e.g. BTO 2 room) could be some viable options.

You could also book appointments to talk to your MP/HDB to see how they can grant a higher loan/reassess your ability to pay the loan.

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Benjamin Low

18 Feb 2023

Associate Director of Sales at Manulife Financial Advisers

It sounds like you're concerned about being able to get enough of an HDB loan to buy the BTO flat you want.

To increase your loan amount, you'll need to show that you have a stable and higher income. This is because the HDB loan eligibility is determined by your combined monthly income and the amount of Central Provident Fund (CPF) contributions you have.

If you increase your part-time income to $1.5k and your husband is able to secure a full-time job with a minimum salary of $3k, your combined monthly income will be $4.5k, which should increase your loan eligibility. However, I can't give you a specific amount for the loan as the eligibility.

My advice is to speak to an HDB officer or a financial advisor for more accurate information on your loan eligibility. They can help you understand the eligibility criteria and guide you on how to increase your loan amount.

Good luck!

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