HDB HFE must-knows (HDB housing loan edition) 💵

Heyyo wassup homies it’s chiobu here! Neko and I recently found out about this and we must share this with our fellow noobies. This is based on our experience on applying to take a HDB loan for our BTO k!

The HDB Flat Eligibility (HFE) letter was rolled out in May 2023 and it is a one time assessment that informs buyers about:

1. Eligibility for a new/resale HDB

2. CPF housing grant

3. HDB housing loan (minimum to maximum amounts)

Let’s zoom in on the last point because that’s the most important one! Now, the maximum HDB housing loan we can take is assessed at the point of application for the HFE.. instead of nearer to key collection (as allowed by HLE).

Example: If a flat is 660k, your CPF grant is 30k and your eligible HDB housing loan is only 300k at the point of HFE application, you’ll have to pay the remaining 330k in cash or CPF at the point of key collection 😱 meaning that you’ll have to save this amount in 4-5 years (before your flat is ready)!

This is particularly important for couples who graduated recently because lower income at the point of HFE application=lower housing loan 🫠 so can’t pick a flat that’s too expensive and hope to pay off most of it using a high HDB housing loan in the future! You can consider a loan from a financial institution (hopefully you can qualify for a higher loan there) but of course the interest rates are much higher.

BUT! You can defer the income assessment for your CPF housing grant and loan if you fulfill the following:

1. *BOTH* parties are students/NSFs or *BOTH* completed school or NS within 12 months of the HFE application

2. Both are above 21 and at least one is aged 30 and below

3. Couple is married or applying under Fiance/Fiancee scheme

4. At least one applicant is a first-timer

^Find out more about the above on HDB’s website k!

Read our other HDB BTO posts here:

- HDB HFE must-knows (esp for self-employed)

- Avoid HDB’s penalty for first-timer applicants

Hope this will help you make a more informed decision about how much you can afford for a HDB okie! Praying that you’ll be filled with wisdom to make the right decision for you and your family.

#bto #btoguide #btosg #Adulting101 #adulting #AdultingWoes #AddToWishlist #MyLemon8Diary #money #MyFirst