Buying Your First HDB Home
- buy a Housing and Development Board (HDB) flat in Singapore
estimate the amount of housing loan that one can afford
- Amount of savings in Cash and CPF
- Estimate of monthly expenses
In Singapore, about 80% of the population live in Housing Development Board (HDB) flats. New couples who are getting married soon will inevitably have to select and purchase a home which often ends up being a HDB flat in Singapore.
Buying A Home That You Can Afford In Singapore
This course aims to help you budget for your first HDB home using one-time and recurring costs. You will use online calculations that narrow down a possible price range of your property based on your own financial status and CPF Housing Grants. Learn to manage your home loan repayment to reduce interest charges.
This course will elaborate on the six steps that you can take to budget for your first HDB flat:
- Determine what's left over each month
- Estimate future housing expenses
- Obtain estimate of loan quantum
- Find out your eligibility for CPF housing grants
- Work out a savings plan
At the end of this course you will be able to have a better financial plan to purchase your first HDB home.
- This course is meant for Singaporean or Permanent Residents of Singapore who wish to buy their first HDB flat
- If you are not from Singapore, you are still welcome to join this course but the material may not be relevant to you.
The mortgage servicing ratio sets a limit to the loan amount. A good guideline to use is that we should not be using more than 30% of our gross income to foot monthly home loan instalments.
In the example shown, a combined CPF ordinary account contribution of $1,150 + $270 of cash surplus represents 28.4% of the gross income and is within the 30% MSR guideline.
What if cash surplus + CPF OA contribution is more than 30% of your combined gross income?
For buying a HDB or DBSS flat whether with a HDB Loan or Bank Loan, HDB will still limit the loan to 30% mortgage servicing ratio.
For buying a EC or private property, only a bank loan is applicable and there is a Total Debt Servicing Ratio of 60%.