I am stressed, so many numbers. How do I calculate if I can afford a 5room BTO? - Seedly
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Asked 4w ago

I am stressed, so many numbers. How do I calculate if I can afford a 5room BTO?

Im a first time hdb buyer. we earn a total of SGD4800 (including allowances and OTs). Our combined CPF is SGD128000 (OA). We are 28 and 32 years old respectively. Do i comfortably afford a 5 room flat? Do we need to pay cash?


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You can use the calculator above to get a rough estimate of your home budget.

A 5 room flat is stretching it. You have not factored in renovation costs and misc fees as well. Go for something more affordable unless you have a very concrete plan in increasing your earning power before committing.

1 comment

👍 3
Chen Zhirong
Chen Zhirong

3w ago

I totally agree

Hi anon,

No need to feel stressed.

First, it's important to note that 5 room flats vary in prices depending on where you intend to stay. However, let's calculate first, the maximum price of a flat that you can afford. Please use the calculator here:


Based on the figures you have provided, it would seem that you can afford a house that costs up to approximately $300K. It does rule out 5 room flats in many estates. You could wipe out your OA with the downpayment to afford a more expensive and bigger flat, but we also must be prudent, as the mortgage loan you will need to service will be something weighing on both of you for the next 20-30 years. If you can find a 5 room flat for $300K, that would be good, but a 4 room flat is probably the more prudent choice.

As a first time buyer, you will be eligible for various grants, depending on whether you take up a BTO or a resale. This helps offset the costs of a flat, but should not be a reason for you getting an even more expensive one.


👍 2
Yuantai Liu
Yuantai Liu, Chief Coach at Happy Coach
Level 4. Prodigy
Answered 4d ago

Hi Anon,

I dont have a full picture of your finances, but based on your total 4.8k income, a 5 room flat may be a stretch.

For a combined income of 4.8k (assuming no debt), I wouldn't go beyond 300k for my flat.

Do ensure that you and your spouse have 12 months of emergency funds! (I personally recommend 12 months, unlike most others who recommend 6 months). This is because of the current economic situation.

Don't hesitate to reach out to me if you need more clarifications.​​​


👍 0
Level 3. Wonderkid
Answered 2w ago

Why do you need a 5 room BTO? Is a 4 room BTO suffice for your needs? Both 5 room and 4 room BTOs have 3 bedrooms which are of similar size.

Living room for 5 room is larger by about 3 window panes, is it worth the extra $100k more to put your dining table there or to have a bigger living area?

To keep costs down, you can consider low floor and/or non-matured area.


👍 0
Level 4. Prodigy
Answered 3w ago

Look at the trends. Lots of boomers looking for 3 room flats after selling their bigger units. This trend will last the next decade.

Most likely your earnings will be less now than in the future, buy small now and upgrade later. High demand from boomers means more cash and with more boomers selling bigger flats, inevitably more supply of bigger flats means prices are closer or below valuation.

Don't rush to make a decision, don't cave under societal pressure.

If you are a multi generation household, living seperate means more subsidies and grants. Living small gets you more subsidies and grants. Keep your mortgage to 10% Gross income.

The house you live in is Not an asset, it's a liability. All the best in your decision making.


👍 0
Imonoyama Chiyo
Imonoyama Chiyo
Level 2. Rookie
Updated 3w ago

Hi... I am a house owner of a 5 room flat (368k) with household income around 4k. Spouse not working. From my point of view, it is easily manageable as we do not have wedding loan or renovation loan. our monthly repayment range slightly lesser than $1.3k (with a mix of cpf and cash). Our lifestyle is quite simple and it is very comfortable. Calculate what u can afford and keep things simple.​​​


👍 0
Shaun WQ Lim
Level 7. Grand Master
Answered 4w ago

Have you tried using the HDB service?


If you intend to take a HDB loan, you have to get a HLE too.

Do use the service first.


👍 0