If you are reading this article, you might just be curious or you are already considering on taking the next big step forward with your loved one.
Applying for BTO can be daunting and trust me when I say that it can be incredibly confusing trying to navigate through the extensive information provided by HDB website.
Read on to know about the 5 things to do for BTO that we most probably do not know.
Check your finances
When we talk about finances, it is not limited to just your current income and the amount of grants that you are eligible for. You will also have to do some financial planning in advance, for example, what kinds of loans will you be able to afford when the time comes for you to buy your house, and what kind of flat are you comfortable with installing with your future incomes.
It wouldn’t do for you to purchase a five room flat and come to realize that you are not able to pay the monthly installments for the flat if you or your partner for some reason is unable to work.
Know what loans you want to go for
There are 2 options for loans which you can go for – either a Bank or the HDB loan. The difference between both loans is in the interest rates and down-payment amounts.
If you are going for HDB loans, you can pay your 10% down-payment using your CPF whereas the 20% down-payment of bank loans must be fulfilled in cash (5%) and CPF (15%).
If you are going for a bank loan, you have to obtain an Approval in Principle (AIP) from the bank and a Housing Loan Eligibility (HLE) from HDB before exercising your option to purchase a flat.
The Housing Loan Eligibility or HLE for short
This may or may not happen to you, but its good to keep this in mind. Sometimes, you may not be able to select a flat during your first application for BTO flats due to demand or not liking any of the available flats.
Your HLE is only valid for a period of 6 months, and sometimes, it might be valid when you apply for BTO the second time but expires before you can exercise your option to purchase a flat.
Be prudent and keep track on when your HLE expires as you don’t want the chance of a good flat getting away from you just because you carelessly missed the validity of your HLE.
Know what kind of grants you are eligible for
Okay, we just wanted to include this point because contrary to popular belief, no extra grant is given for the “stay-near-to-parents” scheme; instead, you are given 2 extra ballot chances to improve your chances of getting a better queue number during your application.
Make sure that you and your partner are committed to this
This might seem to be something that everyone does but we felt that this bears repeating because if for some reason or other, you and your partner separates and decided to forsake your application, the consequences can be extremely costly.
Not only do you say goodbye to any deposits or down-payment you have made to HDB, be fully prepared to return the full amount of grants you had received WITH interest back to HDB.
Can you imagine trying to deal with the heartache and depression from separating with your partner and then adding on money problems to it? So before you and your partner make any decisions, be sure to sit down together with each other and seriously talk about it.
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This article was first published on goodyfeed.com
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