Posted on 13 Feb 2020
I got married a year before i got a letter from NS. Now i have another year to serve. Currently been living at her parent’s house that is vacant(long story) and we’ve been wanting to buy our own house. Since BTO will take 3-4 years to be ready, we thought of applying a 4/5 room flat now so by the time it’s ready, we’re financially stable.
Currently our joint income is $3300. So i was thinking whether it is possible and also whether it’s advisable. Thank you in advance!
It’s possible. But here are a few factors to consider before deciding whether or not it is advisable.
What is the intention of the house purchase? Is it to be a permanent place of domicile?
After considering the first question carefully, you might than ask whether or not you actually want to get a BTO due to the process as opposed to resale. The time cost of 3-4 year might not be worth it in some cases for some couples, especially given your budget and flexibility, the BTOs you can get might not be in a convenient location.
While the cost of the option to buy is low, you might want to take into consideration resale as the process saves you time, which is also an important asset you need to take into account, not just the dollars.
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You may be able to apply for a BTO, subject to eligibility criteria. However, my main concern will be the mortgage that both your partner and you are going to bear.
Without a stable income, you may face stringent limitations in obtaining a loan (regardless of whether it is from the bank or HDB).
With this in mind, I will suggest for your partner and you to sit down together and have a detailed discussion on how both of you will want to plan for the future. In general, go back to the basics by understanding your cashflow and plan with the future in mind.
When both of you are ready, then apply for a BTO. This will be the responsible way to do so to ensure long-term affordability.
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13 Feb 2020
Hi thanks for the reply! Just wanna clarify, the mortgage that we will be paying will start once i got my key right? Or do we have to pay right after loan approval?
Pang Zhe Liang
13 Feb 2020
Once you pick the flat, you will have a preliminary HLE. Before collection of key, you may submit another HLE application. At this point, you will have to ensure that you either have sufficient cash for the remainder of the downpayment or sufficient loan from the HLE. Hence, it is a risk. that you need to take and make sure that it is a calculated one.
It is possible and with the low joint income, you both are likely to get the maximum grants availabl...
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