Support Site for The Unemployed & Underemployed
Tuesday August 7th 2018

New BTO flat owner needs to pay $84,147 before collecting house keys

A new HDB BTO flat owner, Liza, got a rude shock of her life before collecting her 4-room house keys  – the family needs to pay $84, 147 in cold hard cash upfront after minusing all the CPF and loans they have. This massive cash outlay – days prior to the collection of HDB BTO flat keys – may have inconvenience hundreds if not thousands of new flat applicants.

Moreover, there is no early warning of the massive cash cough-out even though they have called HDB regularly regarding the home loans which raises question mark on the HDB loan department’s efficiency.

She reveals to us that she is currently working full-time but her husband is working as a porter on a part-time basis – the main subsequent reason given by HDB for the massive cash outlay as the HLE loan approved may be very minimal based on one person’s income.

The HDB Home Loan Eligibility (HLE)  procedure is a intricate process itself and it will basically calculate how much you can borrow based on your current income, age and whether it is a first or second HDB home loan application.

The HDB concessionary housing home loan interest rate is pegged at 0.1% above the CPF Ordinary account interest rate making it a affordable way to borrow money to purchase your dream home but it will never truly reveal to you how much you can borrow until the final days prior to collection of the house keys.

However, the way HDB mysteriously omit out the loan details for many BTO flat owners have caused heartache for many new flat owners as no one can raise so much cash few days before getting the house keys effectively turning a happy occasion into a nightmarish experience.

In fact, in our earlier article on the same matter, a couple has divorced due to the incident and the single-mum family with two kids is currently living in a HDB 2-room rental flat. They have forego the new BTO HDB flat in the process.

As for Liza, she has asked to downgrade her flat to a 3-room one in view of the cash outlay but she has told us that the HDB officer informed her now they will place her flat on hold for a few months until her husband could get a full-time job.

How HDB operates nowadays is a mystery and as more people apply for new BTO flats which can cost up to $200,000 for a 3-room flat in a remote area, one can only hope that the HDB HLE loan department is transparent and upfront on the way it approves housing loan so that new flat owners won’t receive a heart-attack days before their happiness turn into a nightmarish dream.

Written by: Gilbert Goh

Number of View: 2

Leave a Reply