{"id":22750,"date":"2019-02-28T11:50:16","date_gmt":"2019-02-28T03:50:16","guid":{"rendered":"https:\/\/www.99.co\/blog\/singapore\/?p=22750"},"modified":"2022-06-13T17:06:05","modified_gmt":"2022-06-13T09:06:05","slug":"9-crucial-things-singaporeans-keep-forgetting-about-hdb-loans","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/9-crucial-things-singaporeans-keep-forgetting-about-hdb-loans\/","title":{"rendered":"9 Crucial Things Singaporeans Keep Forgetting About HDB Loans"},"content":{"rendered":"
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Many Singaporeans don’t bother with the fine details of HDB loans, until it’s too late. Hence, the mad last-minute rush for bank loans (when they don’t qualify), or the sudden panic when the down payment is bigger than expected. Make sure you know these before you try to buy a flat<\/a>:<\/p>\n

1. The HDB loan doesn’t always <\/em>cover 90 per cent of your flat price<\/h3>\n

First, note that HDB loans can cover up to 90 per cent of your flat price or valuation<\/em>, whichever is lower<\/em>. If you buy a resale flat at higher than the valuation, you’ll have to top up the difference in cash.<\/p>\n

For example, say you agree to buy a resale HDB flat<\/a> for $600,000. Later, the HDB valuation turns out to just be $580,000. The difference of $20,000 isn’t be covered by the HDB loan – you have to pay it in cash.<\/p>\n

(To avoid this sort of event, always use 99.co to compare the prices of surrounding flats<\/a>. This will keep you aware of the correct market rate for the area).<\/p>\n

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Remember, if your flat price is above the valuation, you have to top up the difference in cash.<\/figcaption><\/figure>\n

Second, always remember that HDB doesn’t have <\/em>to loan you the full 90 per cent. If your credit score is bad, for example, you might end up with 75 per cent or even less. Be ready to top up the difference in cash.<\/p>\n

2. There is a 30-month wait time if you just disposed of a private property<\/h3>\n

If you just sold off a private property, you need to wait at least 30 months before you’re eligible for an HDB loan. This also applies to private property that was inherited, or given as a gift.<\/p>\n

If you’re in such a situation, remember to set aside money for temporary accommodations after you sell. You can find the best priced rental units<\/a> in Singapore on 99.co.<\/p>\n

3. Not every <\/em>type of income is considered when determining your loan amount<\/h3>\n

Note that certain types of income won’t help you to secure an HDB loan. These include the following:<\/p>\n