The first step to our ABCs of financial planning starts with an understanding of your ‘Ability to pay’. Before you find a flat, it is important to review your finances to determine how much you can set aside each month for housing loan repayment and housing expenses.)
As your ability to pay the housing loan instalments may change over time the years, do take a long-term view and consider the following:
Cash payments for your regular and ad-hoc expenses such as those listed below:
* When the allowed CPF amount is used, you will have to pay the monthly mortgage instalments in cash.
The less you pay in monthly instalments, the more you will have in cash and CPF savings to build up your resilience to emergencies and pursue your goals (e.g. financial freedom and retirement). Check your affordability and minimise the housing loan amount and repayment period to save interest costs.
If the cash outlay to buy a flat and the monthly housing loan instalments are too much of a financial burden, it may be better to give yourself more time to build up your finances before committing to buy a flat. For flat owners who are looking to sell and buy another flat, do re-consider the need for the change and only commit to sell your flat when you are financially ready to buy another.
Understand the different terms and considerations between taking a housing loan from HDB and the financial institutions, and make an informed housing and financing decision.
Find out more about the types of HDB flats available for sale and design features of new flats.
Get started with your flat purchase by finding out about the buying process of a flat from HDB.
Understand and follow the resale procedures to ensure a smooth flat buying journey. Find out more about the process before committing to a flat purchase.