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Thread: Is borrowing 80% Housing Loan OK?

  1. #1
    Join Date
    Jan 2008
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    560

    Default Is borrowing 80% Housing Loan OK?

    my friend asked me this question recently - when a person just got married, and bought a property, it is OK to take a 80% Housing Loan.

    She is in her 30s and does any other assets.

    What is a conservative amount to loan to maintain without over stretching oneself?

  2. #2
    Join Date
    Jan 2008
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    35

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    Hi cookies,

    Is the property hdb or private? Loan is from commercial bank ? If I am not wrong, 80% financing is easy. If you are talking about 90% financing, then abit tough.

    But if she is first time buyer, most likely she will take up HDB concessionary loan, whose rates are usually lower than from commercial banks. There are some eligibility conditions and there are two you should take special notice of. That is (1) if she should have a monthly household income not exceeding $8,000. (2) And if she is buying a 5 room or smaller resale flat under the Single Singapore Citizen (SSC) Scheme, her gross monthly income should not exceeding $3,000. Click here for full list of eligibility conditions

    Cheers,
    Jas

  3. #3
    Join Date
    Jan 2008
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    hi jas,

    my friend and her hubby has a combined income of more then $8,000 (if you are referring to gross income). does that means that she has to go to commercial bank instead of hdb? if so can they still enjoy the CPF housing grant for first timer?

    cook

  4. #4
    Join Date
    Jan 2008
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    My guess is gross income, if she exceed then quite likely not. But I sugest she checked with HDB direct to be sure..

    As for the housing grant, there is also a income ceiling of gross monthly household income not exceeding $10,000. If you are buying a flat with your extended family, your gross monthly household income must not be more than $12,000. Not sure if this is consistent with your CPF concess loan.

    Click here for Housing grant eligibility

    I suggest that your friend speak with HDB officer about her requirements, alternatively check with a bank.

    all the best !

  5. #5
    Join Date
    Jan 2008
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    19

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    cookies,

    can ask your friend to check out commercial banks also? Banks thesedays have very attractive packages. My suggestions are Standard chartered and Maybank.

    check it out ...

  6. #6
    Join Date
    Jan 2007
    Posts
    106

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    cookies, if your friends' gross income do not exceed $8000 + 5%, they can still try appealing to HDB to get a grant. Why bother with the hassle of dealing with multiple banks and not be assured of the best deal? Just check out www.myhousingloan.com.sg

  7. #7
    Join Date
    May 2008
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    114

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    I wonder if there is any change in the housing loan market - is getting 90 to 95% still possible? Any advise.

  8. #8
    Join Date
    Jan 2008
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    560

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    i think with this kind of economy, i think it's really very difficult to get up to 95%. i heard even 80% also difficult. my friend tried 80% but was only granted 70%.

  9. #9
    Join Date
    Jan 2007
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    106

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    90% financing is currently the maximum allowed by MAS but interest rates are much higher than for 80% financing and below. It's best to apply for an in-principle approval if you want certainty on the loan amount you qualify for.

  10. #10
    Join Date
    Sep 2009
    Posts
    94

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    Quote Originally Posted by HalcyonVI View Post
    cookies, if your friends' gross income do not exceed $8000 + 5%, they can still try appealing to HDB to get a grant. Why bother with the hassle of dealing with multiple banks and not be assured of the best deal? Just check out www.myhousingloan.com.sg
    exactly my emotions. thats a great site that will settle all your loan needs. i've tried it

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