Archive for the ‘Credit’ Category

HDB to raise income ceiling

Monday, August 30th, 2010

If your household income is between $8-10k, now you have the option to buy DBSS (Design-Build-and-Sell Scheme) and EC (Exeuctive Condominimums).

They will be eligible for $30k housing grant, but have to take up their own private bank loan.

THE Housing Board will raise the $8,000 income ceiling to $10,000 to give those caught in the ‘sandwiched group’ more housing options.

While the $8,000 monthly income cap remains for those buying Built-To-Order (BTO) flats, the ceiling for those buying flats under Design-Build-and-Sell Scheme (DBSS) will be upped to $10,000. DBSS gives private developers flexibility in designing, building pricing the units.

Prime Minister Lee Hsien Loong, who announced this at the National Day Rally on Sunday night, said the higher income ceiling will allow those caught in the $8,000 to $10,000 group to qualify for both DBSS and executive condominiums.

‘I think this group is quite anxious about falling in between, as they are not eligible for HDB and they can’t afford private property.. And because people are marrying a little bit later, so their incomes tend to be a little bit higher, so they worry that they will get promoted before they get settled. So we will do more to help them own their homes,’ he said.

Buyers of a DBSS will enjoy concessions given to those buying an executive condominium. They will be eligible for a housing grant and can arrange their own financing. While not quite doing away with the $8,000 ceiling cap, the new move, which many flat buyers have long clamoured for, will open up thousands of mid-priced units to the sandwich group.

A typical four-room BTO flat costs $300,000, a DBSS flat around $500,000 and an executive condominium around $700,000.

PM Lee also announced that the government will move to cool the private property market, but did not give details. ‘Otherwise you will remember nothing else about my speech,’ he said, to laughter from the audience at the University Cultural Centre.

The Ministry of National Development will announce details of the changes on Monday morning.

On public housing, PM Lee said the HDB will build 22,000 more BTO units next year. ‘So if you miss one BTO, don’t worry, the next one is coming… There are 22,000 new flats coming along and we don’t have 22,000 new couples getting married in Singapore every year,’ he said.

He added that the HDB will also speed up construction of flats and cut the waiting time, which averages three years now. He also assured flat buyers that HDB flats would be kept within reach of Singaporeans. The affordability of housing has been a hot-button topic this year, with many voicing concern over the surge in property prices.

PM Lee acknowledged that the influx of foreigners has impacted on housing demand, but he added that it was not the only factor. There were broader economic forces at work, he said.

(via ST Online)

How do I find a suitable Bank loan?

Monday, August 3rd, 2009

(Part of “The Almost Complete Goondu’s Guide to Buying a HDB Flat in Singapore” series.)

There are 3 ways basically, to finding a suitable Bank loan:

1) Ask your real estate agent

Agents earn a referral fee for bank loans, so if you like your agent a lot, getting him to refer you a loan would help him get some pocket money from the bank as well. On the downside, they might be incline to recommend loans from banks with higher incentives for them.

2) Approach the banks individually

This can be quite tedious really. Most banks don’t have their home loan packages online, and would require you to contact them personally in order to know about their loan packages. Even then, you might not get the lowest package, as they might push higher ones first.

3) Use a Mortgage Consultant service

Basically, you provide them the details (eg. buying hdb/private, loan amount, loan period) and they’ll contact the banks and source out suitable loan packages for you.

This service is free, as they are compensated by the bank upon a successful referral.

(in alphabetical order)
Global Creatif Financial
Housing Loan SG
Home Loan Singapore
Money Mind
My Happy House

Personally, I’ve only used HousingLoanSG before, and have not tried the rest. We went with Approach 2, and did get the best available home loan then, and it’s still the lower than those being offered now.

    Approach 1

    We will work exclusively with clients to get the best housing loan package for them. We guarantee the best deal based on the client’s requirements. Beside the obvious interest rates, we also take into account other things such as legal subsidy, lock-in etc – basically the package as a whole. We will act as your single point of contact for all the lenders so that you don’t have to liaise with multiple persons. We require clients to be committed to refinancing through us for this method.

    Approach 2

    Some of our clients prefer to be more hands-on and approach lenders on their own. What we can do here is simply to see whether there is anything better than the lenders they have already approached. There is no commitment but there is also no guarantee on getting the best package for this approach.

    There are no fees that we charge as we are actually engaged by every bank and financial institution in Singapore to provide this service. If you have any queries, please feel free to contact me.
    Best Regards,