HDB: Buy A Flat Within Your Means

Source : The Electric New Paper, May 21, 2008

WHEN contacted, HDB said Mr Dave Tan and his fiancee had approached the loan counters at the Design, Build and Sell Scheme (DBSS) site for an estimate of their loan eligibility.

The estimates given were based strictly on the verbal information provided and not verified with supporting documents.

Those seeking an estimate were informed of this.

And when quoting his income, HDB said Mr Tan did not indicate that his income was based on director's fees.

However, based on documents submitted in the actual loan application, Mr Tan's income was based on fees derived from his role as a director in a company.

Futhermore, Mr Tan's fiancee had started work in a new company for less than three months.

STEADY INCOME

A HDB spokesman said: 'Directorfees are specifically listed as income not considered for credit assessment as they are not considered a steady source of income.

'In addition, applicants are required to have three month's income from their employment before their pay can be used for purpose of credit assessment to ensure that they are able to sustain regular instalment payments.'

HDB's guidelines on income that can be considered for credit assessment are on the HDB InfoWEB at www.hdb.gov.sg

HDB said that flat buyers should exercise financial prudence and buy a flat within their means as the purchase of a flat is a major financial commitment.

The necessary information and aids to help home-buyers with their financial planning are provided on the HDB InfoWEB.

Added the spokesman: 'Mr Tan could consider buying a more affordable flat from the resale market if they are in urgent need of one, or apply for one under the HDB's Built-to-Order exercises.'