How do I calculate the highest price of resale HDB I can afford? Assuming I don’t want to fork out any cash for the down payment?

Since we are aiming to not use any cash, just fully CPF, we’ll most probably be taking a HDB loan. Just received our HLE and not sure if HLE amount is 90% of the total price or 90% after deduction from grants.

Ie. HLE = $480k~
Total income = $7k~
Grants = $90k (4room resale: $50k, EHG: $20k, Proximity: $20k)

Thanks, community!

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Cedric Jamie Soh

25 Sep 2019

Director at Seniorcare.com.sg

HDB loan = up to 90% of the value can be loaned

Bank loans = up to 75% can be loaned.

I personally prefer bank loans because the interest rate (best currently is 1.89% for first year) is way lower than HDB 2.6%

Let's use HDB loan for now since you can use the lowest downpayment of 10%, and 100% of this downpayment can be from your CPF.

So how much CPF-OA both your spouse and you have?

If you have, say $50,000 combined, then that is the maximum you can use to pay for the downpayment (the 10%) so that means the maximum flat you can buy is $500,000.

No cash.

A simple formula for HDB loan = whatever you have in CPF X 10 = maximum flat you can buy

(i am ignoring your income assessment, just based on downpayment affordability)

If you want to use a bank loan for long term financial savvy, great for you. Downpayment is 25%, 2.5 times of HDB loan.

And 20% of the flat value can be paid by CPF, but 5% downpayment MUST BE BY CASH.

I chose a bank loan because the interest rate difference is large. But if you need cash, the HDB loan is more useful for you.

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