Buying Your First HDB Home
4.3 (20 ratings)
Course Ratings are calculated from individual students’ ratings and a variety of other signals, like age of rating and reliability, to ensure that they reflect course quality fairly and accurately.
2,148 students enrolled

Buying Your First HDB Home

Buying a Housing Development Board flat that you can afford
4.3 (20 ratings)
Course Ratings are calculated from individual students’ ratings and a variety of other signals, like age of rating and reliability, to ensure that they reflect course quality fairly and accurately.
2,148 students enrolled
Last updated 2/2017
English
English [Auto-generated]
Price: Free
This course includes
  • 31 mins on-demand video
  • 2 articles
  • 1 downloadable resource
  • Full lifetime access
  • Access on mobile and TV
  • Certificate of Completion
What you'll learn
  • buy a Housing and Development Board (HDB) flat in Singapore
  • estimate the amount of housing loan that one can afford

Requirements
  • Amount of savings in Cash and CPF
  • Estimate of monthly expenses
Description

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:

  1. Determine what's left over each month
  2. Estimate future housing expenses
  3. Obtain estimate of loan quantum
  4. Find out your eligibility for CPF housing grants
  5. 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.

Who this course is for:
  • 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.
Course content
Expand all 13 lectures 32:42
+ Introduction
2 lectures 06:04

This video introduces this online module entitled "Buying Your First HDB Home". HDB stands for the Housing Development Board of Singapore.

Introduction
02:18

Find out more about the Institute for Financial Literacy and the complimentary talks and workshops that we offer.

About the Institute for Financial Literacy
03:46
+ Budgeting For Your First HDB Home
10 lectures 25:58

Step 1 involves tracking your fixed and variable expenses and determining what is left over each month.

Step 1: Determine What's Left Over Each Month
01:02

Step 2 involves estimating your future housing expenses such as utility bills and conservancy fees. Do remember to include some money for starting your family as well.

Step 2: Estimate Future Housing Expenses
00:56
Steps 1 and 2
00:26

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.

Mortgage Servicing Ratio
00:47

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%.

Activity: Work out your loan instalment ability
00:52

In this step, we will look at how to use an online calculator to estimate the loan quantum.

Step 3: Obtain Estimate of Loan Quantum
03:42

This article displays the details in step 3.

Step 3 - Article
01:19

Note that CPF Housing Grants can significantly lower the costs of your housing loan.

Step 4: Find out about eligibility for CPF Housing Grants
03:55

It is important to work our all the additional cash you require when buying your first HDB home.

Step 5: Work out a Savings Plan
05:36

The "Our First Home" Calculator can be found at http://www.cpf.gov.sg

Our First Home Calculator by CPF Board Singapore
07:22
+ Summary and Conclusion
1 lecture 00:43

We hope that you have enjoyed taking this course. For more, please refer to http://finlit.sg

Conclusion
00:43