If applying for BTO & taking a HDB loan (1st-timers), how will a self employed person's annual income be assessed for EHG and HDB loan? Will the full amount of the declared annual income be assessed?

Hi Jia Min,

For HDB loans, because of the TDSR, a self-employed person's average gross monthly income over 6 months might be subject to a haircut of around 30%. That means if you earn $3,000 monthly as a self-employed person, your maximum eligible HDB loan amount will be equal to a salaried employee earning $2,100.

EHG eligibility is based on the average gross monthly household income. So the full amount of the declared income will be assessed.

Ultimately, you should still apply for your HLE via the HDB website: HDB
Application for an HDB Loan Eligibility (HLE) Letter. HDB ultimately considers HLE applications on a case-by-case basis so this is the only way to find out if you are eligible for the EHG amount and HDB loan amount you expect.

Hope this helps!

Use the portal in HDB website to do your HLE. Usually there is a haircut but being first timer and on HDB loan, it’s should be easier. Note whatever amount from Lian amount needs to be paid in either CPF or cash