Mr. Tan was Ok with the $675k HDB price!

[Rncw]

with the loan of 150K , then plus CPF or cash, can get cheap 3/4rm HDB

[Ender]

But the Housing Development Board (HDB) rejected their loan application for 90 per cent of the cost of the flat last month.

 

This is because Mr Tan's director's fee can't be used for credit assessment, and his fiancee didn't have the pre-requisite three months of continuous employment for the same company.

 

I think base on normal circumtances, combine $6K should be possible to take the 90% loan. normal circumtances mean their CPF should have more than $100K combined if they have worked for 5 years. I calculated if they were to stretch to their limit (though not advisable to do so) with 30 yrs loan.. Monthly they are looking at around $2900 per month in installment, which can be finance byt thei combine CPF + cash. His wife didn't meet the criteria..

[Sfhuang]

I have my doubts regarding the article. I believe HDB would have advised him of his loan eligibility before he went down to pay the option fee. Even if he wasn't advised, he should have checked all his financing alternatives out before committing to the purchase.

 

IMHO, it is utterly silly (and unbelievable, to boot) to pay for the possibly largest investment of your life without knowing if you have finances backing you up!

 

The slant of the article appears to take a sympathetic view to Mr Tan's plight but I beg to differ. Mr Tan has only himself to blame for trying to buy something he can ill afford.

[Sfhuang]

this guy 30 liao, still cannot think / plan financially, really pity him and his wife. upset over the 8k? gosh, she will lose way more money than that by getting the hse lor.

 

Yah, he should take 8k as a lesson learnt instead of going to the media to KPKB.

[Damienic]

Actually the paying of option money is between him and the developer. and the developer is in no way obliged to assess your credit standing and determine whether you can afford or not..he probably signed and pay the option money to the developer before seeking loan from hdb with the papers..

[Keithhiap]

i heard CityView, price has decreased.... dude to lack of applicants?

 

humm.... did i hear it wrongly?

[Nov1mom]

maybe after paisehing himself, he will finally learn.

[Damienic]

Really? The last I went around 2 weeks ago, the price did not drop. Maybe they were slashing for the last few untaken units?

[Dwoon]

Hmmm... why everyone thinks he's stupid.... and not give him a doubt???

 

I know of quite a few people who runs their own businesses. But they under declare their earnings to pay much lesser tax. For such self employed, their IR8A would be the official document..... of course he won't be so dumb as to say he has the $$$ or earns much more else the tax man would go dig into his case.

 

He might be able to service the loans but because his declared income is such, he got himself into a fix instead.... and he can't come clean as that would mean exposing himself to the IRAS....

 

Does this make sense???

 

6000 combine wanna buy such expensive flat, i 6000 combine dun even dare to touch 400k and above flat. Pls jiao ta shi di a bit.

[Sabian]

I think it's weird. the income ceiling for 5Rm HDB is still 8k/mth right? Since they got 6k/mth household income, HDB say they qualify for only 150k loan from them. So what does that mean? Can those with household income of 8k loan, say 80% of 675k? (540k). Those with 9k household income not eligible for applying right since it's higher than income ceiling stipulated by hdb.

 

Or does that mean those ppl buying this 675k hdb flats need to be cash rich? only earning max 8k / mth but got like 500k lying in the bank?

 

Wah I confused leh.

 

i think that is the implied msg.

 

some hdb flats are for those who have a little stash somewhere...

[Sabian]

Was there a rule by banks which stipulate the max loan for first hdb is 60%? I tried to buy first flat from hdb flat last yr using pte bank loan and dun think there was any such rule. they were quite ok to lend me 80% then (unless of cos the rules have changed) after assessing my credit status.

 

We shld also know that the banks dun necessary always loan the full sum based on our income level. Beside income, they would also look at your credit standing(how much oustanding bills with credit card banks), how much car loan you borrowing at the moment and etc etcbefore deciding the final amt to lend. If someone is on high car loan and also on some other loans at the same time, the bank is likely to reduce the figure which they willing to loan. We dun really know what is the full story behind it. On the fact that the bank are willing to loan only 400K on his 6K monthly income could be due to some other reasons which we do not know. The person trying to seek a loan cannot always assume just becos I earn a particular sum of salary every month also means Iam definitely guaranteed of certain sum of loan. it doesn't always work this way.

 

Like I say, someone did screwed up along the way and did not advise him properly. BUT HDB did remind many home buyers time and time again to have our credit status assessed and determine how much money we can loan first before signing on the dotted line. It is obvious he jumped into it assuming there would be no problem at all for him to get a loan of over 500K. Someone did screw up and it was unfortunate for him, but at end of the day, he shld have done all the necessary checks first before committing on such a hefty purchase. If he is buying a 400K flat with a 6K income and din bother to do any prior checks, I would still say it is understandable. But for him to earn 6K and jump into buying a 675K flat without ascertaining whether he could get sufficient loan is really

 

 

totally agreed.

[Damienic]

Sigh...whatever it is, should he just assumed he will be able to get the amt of loan he is looking for without ascertaining it first before signing on the dotted line and paying the option money?? shldn't he worry that his declared income is much lower than his actual income and as such he would have problem obtaining the loan??

[Sabian]

oooh Fort Rd...

 

i like

[Jcats]

consider himself lucky

 

when spore property price go down 20-30% in the next two years

 

more upset over the losses, maybe she will leave him for good or die of heart attack

[Damienic]

yep. it could turn out to be a blessing in disguise that he did not manage to get that flat.

[Arowana1]

Actually, i think the couple was pretty silly and naive, not deserving of scorn like everyone heaped upon them, but just amazingly naive. There is such a thing known as HLE letter, HDB Loan Eligibility Letter. You download the form, fill in the form, submit your income documents, and within 2 weeks, you will know how much HDB is willing to loan you. I will be damned kiasu and get the HLE letter in hand before doing anything rash like signing the option and placing a deposit. I hate uncertainty when i am plonking down my money.

 

It is something like, you are 21 years old, you can afford a TC sports car. But did you find out whether there is any insurance company willing to take you in the 1st place, and for how much premium per annum? 7-8k insurance premium per annum is not unheard of...

 

u read my mind. there are controls in place to prevent people from losing their money when such incident happen. tis is why there is a hle or lo requirement before u exercise option. agent is supposed to run through the checklist by hdb before allowing someone to 1) sign option, and 2) exercise option. dats why i said someone screwed up along the way. obviously he exercised liao cos hdb max option fee is 1k nia so loss is capped at 1k.

[Puffer_fish]

prices has start to go down 10% on luxury district, it will be more 20 % to 30% for normal district.

 

he should have put a deposit tell the agent to give him 3 days to find loan, once loan is confirm then ask the agent to cash cheque.

 

what he did was ask agent to cash cheque and think that he own the bank and the bank will agree to whatever amount he ask for.

 

he did not do his home work, now complain to media and hope that HDB will be force to accept his case due to pressure from media

[Peqasus]

think in essence, as with all investment, a feasibility study is always crucial. Guess they only teach this in the sch of hard knocks. In this case, his tuition fee was $8K.

 

But on the flip side, money is one lesson that nobody can really teach u. Yes u can know the theory but applying it is another. Eg knowing the pros and cons of a fixed rate loan vs a variable interest rate loan etc.

 

A Classic eg would be cash rebate on cars. got a acquaintance who boast getting a fit at 55K. upon further asking realize he took cash rebate. guess they bought into the guy's sales talk.

 

Look ard us, we are all surrounded by institutions waiting to slaughter us. even a shoe shop at queensway can be "linked" to 3 other different shops. Either same owner or reseller's reseller's reseller. up to us to do our homework and sift thru the facts and fiction.