HDB BTO

Build To Order HDB flats

ASK A QUESTION
HDB BTO
  • Asked by Anonymous

    Yixiong Chang
    Yixiong Chang

    Top Contributor (Nov)

    155 Answers, 200 Upvotes
    Answered on 06 Nov 2018
    This is a very tricky and sensitive problem. Since your ultimate goal is to buy your own flat. He will need to be able to stop paying the mortgage, other you might have problem getting a mortgage for your home. As debt servicing will limit to how much loan is available (thus limiting the type of flat u can buy). There are some ways: #1: First you might need to cancel the CPF payment for the mortgage by your spouse. The mortgage will have to be serviced using cash in the name of his parent. (This will have to be kept secret). There after you will be in better debt servicing ratio to apply for a loan for your new flat. For HDB loan, repayment only starts when u receive your keys for the BTO. After the new flat is ready for move in, the parent's flat could be sold where they can move in with u. Or other solutions as below.. #2: Lease buy back scheme - Sell the tail end lease back to HDB. The owners' age need to be 65. The proceeds, if any, must be used to topup owners' CPF retirement account up to the current full retirement sum. Government will grant a Cash bonus of a $1 for every $3 topped up this way up to $20k. Parents will be able to stay in existing flat this way. #3: Right sizing - More troublesome as u have to sell and buy a smaller unit. A loan can still be taken on the new smaller flat but it will be a smaller amount. If there are any proceeds, it can be used to topup the CPF RA to be eligible for cash bonus of up to $20k from the government. Without details it is really hard to suggest appropriate solutions . Are u currently staying together with his parents? What is the unit type of his parent's flat, how much mortgage left to pay? How Old are the parents? I also assume the flat is in the name of both his parents and they have been living there for more than 5 years? Are there anyone else living in the flat? Does your husband have sibilings? Income levels for both of u? Let me know if u would like to discuss further.
  • Asked by Anonymous

    Gabriel Lee
    Gabriel Lee

    Top Contributor (Nov)

    353 Answers, 532 Upvotes
    Answered 2w ago
    As always, all investments carry risks and the returns are not guaranteed as compared to your study loan's interest. Therefore, you should try to clear off your loan asap before beginning investing and only invest with money that you can afford to lose.
  • Asked by Anonymous

    Jessica Chuah
    Jessica Chuah
    3 Answers, 16 Upvotes
    Answered on 10 Jul 2018
    I'm making the assumption of taking a loan with HDB for the answers below. Number 3 and 4 may defer a little if you choose to opt for bank loan Fees involved include the following: 1. Upon submission of choice of ballot location and flat type: $10 Application Fee (via Credit/Debit card online) 2. Upon attaining a queue number and going down to HDB Hub for flat selection: $2000 option fee applies (via NETS) 3. Upon signing of option to purchase: 5% downpayment (via CPF and/or cash/cheque/cashier's order) 4. Upon signing of sale and purchase agreement: Balance downpayment and 1 to 3% legal fee and stamp duty (via CPF and/or cash/cheque/cashier's order)
  • Asked by Anonymous

    Yixiong Chang
    Yixiong Chang

    Top Contributor (Nov)

    155 Answers, 200 Upvotes
    Answered on 12 Nov 2018
    No, you shouldnt do that. You will not be getting any tax relief by doing so. For retirement, u can top up your special account directly (Retirement sum topping up scheme). This way, u will receive tax relief for the topped up amount. Eg, your taxable income is $40k, for every dollar u earn above 40k is taxed at 7%. Therefore, if u topped up $1000 into your special account, u get $1000 tax relief, u saved 7% of $1000 = $70 tax money. Effectively have gotten 7% return on your money, in additional u will earn 4%-5% interest yearly guaranteed. If u want to pay for house loan, u can just use the cash to paydown the loan directly. HDB loan interest is 2.6%, but u will be able to earn at least 4% in SA. So the money could be better to topup your special account this way. Take note Tax relief caps at $7k per year though. If you are taking HDB loan, there is another one area for 'savings' which is the HPS. Add me on facebook if u are interested to learn about it.
  • Asked by Anonymous

    Jim Ng
    Jim Ng, Insurance Premiums Reduction Specialist™ at SaveSmartSingapore.com

    Top Contributor (Nov)

    43 Answers, 89 Upvotes
    Answered on 09 Nov 2018
    I am 23 years old studying and working at the same time, while my spouse is working full time. I have been together with her for 5 years, through my NS life, and all thick and thin. We own our own flat. Ask yourself this question, are you certain your partner is the one? If so, it is not a bad idea to leverage on the fact that you can obtain a higher HDB grant because your partner is still studying, therefore you'll obtain a higher HDB grant. Do note that there is an accrued interest on the HDB grant which is 2.6% yearly. There is a requirement for you to deposit that amount back into your CPF if you choose to sell your flat. Cheers. Hope you and your partner own a flat soon~
  • Asked by Anonymous

    Kenneth Lou
    Kenneth Lou, Co-founder at Seedly
    293 Answers, 690 Upvotes
    Answered on 08 Oct 2018
    Personally, I would think the BTO option would make the most sense... Financially and practically. Can your mum continue to own the flat as a single occupier while you guys help to pay for her balance as well? Or is she able to fund it on her own? And actually the BTO balloting takes a long time. I personally have tried it 7 times before getting a flat in Ubi (on my 8th try) because it is a mature estate. For this: "If we were to take over the balance loan, will there be any grants we can use?" I don't think there are any ones that I have seen before... so unlikely... unless it's like a purchase of a resale flat? But that is usually from another party... not family related. If it's a resale purchase, can use a variety of grants that you see here: https://www.hdb.gov.sg/cs/infoweb/residential/buying-a-flat/resale/schemes-and-grants/cpf-housing-grants Let us know anonymously if you have any more questions below, our content team can go research about this more in detail as well. Cheers!
  • Asked by Anonymous

    Yixiong Chang
    Yixiong Chang

    Top Contributor (Nov)

    155 Answers, 200 Upvotes
    Answered 3w ago
    Now is not necessary a good time for property investment as well. As u mentioned, "the investment can do a better job in compounding.." , so u should question why do u need to buy a property now since u do not intend to live in it. Take some time to understand the property market first. Keep a lookout for new launches and past transactions. Get a feel of the general economic environment. Then when a good property investment opportunity comes along, u will be positioned to go for it. And u will never know when your significant other will come, then both of u could get an EC then. =D
  • Asked by Anonymous

    Steph Yeo
    Steph Yeo, Auntie Uncle Whisperer at Agency for Integrated Care
    64 Answers, 127 Upvotes
    Answered on 13 Nov 2018
    It is difficult to reduce allowance given to parents who are not working and have little savings. So maybe lets settle that another way by helping them plan out their monthly expenses and reduce where possible. Are her parents eligible for CHAS to lower medical bills? Are there some recurring expenses like telco bills that can be combined into some family plan that could be cheaper? Could they maybe be overpaying for insurance? Could a regular JB trip help lower costs of household items? These are some things that she can look into and help to apply and lower cost, so it may potentially be easier to lower the allowance. If her parents are comfortable sharing how much CPF payout they are getting each month, that could help in understanding the base "income" her parents have without the allowance. Wedding-wise I would suggest to have a simple wedding instead of anything large and elaborate. BTO shouldn't be too hard due to loans and grants. Perhaps get a smaller unit first? And live near one side's parents for extra grants.
  • Asked by Anonymous

    Loh Tat Tian
    Loh Tat Tian, EX-FA at INSURANCE

    Top Contributor (Nov)

    151 Answers, 212 Upvotes
    Answered on 19 Nov 2018
    You have all the resources here. https://blog.moneysmart.sg/property/cpf-housing-grant-guide/ most of them is tagged to the housing income. For being unemployed, it will affect the maximum loan you can take from HDB, but on the bright side, you will receive more HDB grants (credited into your CPF first) to pay for the housing.
  • Asked by Anonymous

    Yixiong Chang
    Yixiong Chang

    Top Contributor (Nov)

    155 Answers, 200 Upvotes
    Answered on 14 Nov 2018
    I dont see any issues. Loan amount will still have to depend on your average monthly income and your other loan payments etc. You'll just need your latest notice of assessment from IRAS, your ACRA profile, and make a statutory declaration with HDB to affirm your last 6months average income as proof of income levels. (so to make sure u are below the income limits)
See more questions

Manage your money for free today!

Download on the App StoreGet it on Google Play
  • Quick overview
    Quick overview of your bank and card transactions.
  • Secure syncing
    Secure syncing of your bank or credit cards transactions
  • Automatic categorization
    Automatic categorization and analysis for your expenses
Seedly app