How Many Oz Of Formula For 12 Month Old Explaining the Advantages of HDB Loans Versus Bank Loans (An Abridged Version)

You are searching about How Many Oz Of Formula For 12 Month Old, today we will share with you article about How Many Oz Of Formula For 12 Month Old was compiled and edited by our team from many sources on the internet. Hope this article on the topic How Many Oz Of Formula For 12 Month Old is useful to you.

Explaining the Advantages of HDB Loans Versus Bank Loans (An Abridged Version)

Before 1 January 2003, people buying an HDB (Housing Development Board) flat must finance it with an HDB Concessionary Rate Loan or HDB rate loan. But since then HDB loan payments have been replaced by housing loans from financial institutions, gazetted by the Monetary Authority of Singapore.

HDB Concessionary Value Loan

Compared to a home loan from a financial institution, an HDB loan has stricter eligibility requirements. Below covers most of them.

Eligibility Criteria:

  • For HDB flats only (resale or direct purchase from HDB)
  • At least one customer must be a Singaporean
  • You must have a gross monthly income not exceeding $10,000 (or $15,000 for extended family)
  • For a DBSS apartment the income ceiling is $8,000 (or $10,000 for extended families)
  • For applicants under the Single Singapore Citizen (SSC) scheme, the income ceiling is $5,000.
  • You must not own a private residence (in Singapore or abroad), including HUDC and executive condominium
  • You must not sell a private residence within 30 months and take out a HDB loan before
  • You must not have received a previous HDB loan within 30 months
  • You must not take out more than two HDB loans
  • You must not own any markets/stalls or commercial/business property (Unless you run the business yourself, have no other source of income, and own only one market/stall or commercial/business property)

From July 2013, HDB loans will no longer be granted for flats with less than a 20-year lease. In addition, for flats rented between the ages of 20 and 59, loan approval and tenure will be subject to certain conditions.

Given the many restrictions on HDB loans, why do Singaporeans still want to take out one? We delve further into the benefits of these loans in the following sections.

1. Limit of withdrawal from CPF (Central Provident Fund)

For financing through bank loans, the CPF Ordinary Account withdrawal cap is up to 100% of the valuation limit (VL), whichever is the lower of the purchase price or the value at the time of purchase. If the loan is unpaid when this limit is breached, the mortgage withdrawal limit can be increased to 120% VL unless half (all) of the available minimum amount is reserved for borrowers under 55 (55 and over). This mortgage withdrawal limit varies with the date of purchase of the flat, purchases from 2008 onwards are 120%.

With an HDB loan, however, you can enjoy a higher withdrawal limit.

To buy directly from HDB, there is no savings limit on the regular Account you can use.

To resell HDB flats, there is no savings limit in the General Account you can use, once you have set aside half of the minimum available amount.

But from July 2013 onwards, for flats with lease agreements between 30 and 59 years the use of CPF funds is only allowed if the remaining lease covers the customer until 80. :

Limitation of withdrawal

= (Leasing of flat or property when the youngest landlord is 55 years old / Leasing of flat or property in the shopping area) x VL

For example, in a buy-to-let situation the buyer is 38 years old and the lease is 40 years. When the customer turns 55, the remaining tenure will be 23 years. That’s why

Limit withdrawal = 23/ 40 x VL

Table 1 shows more about what VL is.

Table 1: VL

Flat A

Purchase price (S$) = 400,000

Valuation (S$) = 350,000

VL (S$) = 350,000

Flat B

Purchase price (S$) = 370,000

Valuation (S$) = 420,000

VL (S$) = 370,000

For flats with less than 30 years of lease, the use of CPF fund is not allowed. In other words, customers will be coughing up money to cover the down payment, monthly mortgage payment, stamp duty and various other charges.

2. No down payment required

The main advantage of HDB loans is that you do not have to pay any part of the down payment in cash. You are allowed to use the balance in your CPF (Central Provident Fund) account to pay it off in full.

With a bank loan, you will need to pay at least 5% of the Valuation Limit (VL) in cash. If the loan period exceeds 30 years or exceeds 65 years of age, the minimum amount jumps to 10%.

3. High loan

For the first HDB Concessionary Rate loan you take out, the loan amount is as high as 90% VL. In contrast, in bank loans, the quantum is capped at 80% LTV (loan-to-value ratio). It is reduced to 60% if the loan term exceeds 30 years or exceeds 65 years.

The new regulations, which came into effect on 12 January 2013, mandate that the mortgage service ratio (MSR) for private loans must not exceed 30% of the borrower’s monthly income and 35% for HDB loans.

Ideally, this can translate into a lower loan amount for a bank loan compared to an HDB loan.

For example, for a 30-year loan with 80% quantum for a S$800,000 HDB flat, at an interest rate of 1.5% pa, the monthly repayment amount will be S$1,932.67. To qualify a

  • HDB loan: Gross monthly income ≥ S$5,521.92
  • Private loan: Gross monthly income ≥ S$6,442.24

Therefore, if your income is below S$6,442.24, you will not qualify for an 80% LTV private loan. If you extend the term of the loan, current rules dictate that you only take up to 60% of the LTV.

Therefore, the HDB loan will allow a higher quantum of loan.

4. HDB is more flexible

As a Government agency whose primary objective is to provide quality affordable housing and promote home ownership, HDB tends to be tolerant of borrowers.

But with a loan from a financial institution, you always have to pay a fixed amount every month even if you have a reduced income.

Furthermore, HDB often offers deferment of monthly installments if you fall into financial difficulties. Banks, on the other hand, will be hot on your heels if you delay a payment by even a day!

5. There is no penalty for partial or full repayment of the loan

The point, is that HDB imposes 0 penalty for partial or full repayment of its loan.

Most loans from financial institutions, however, come with a lock-in period (commitment period) typically of 3-5 years. During this time, any refund in excess of the pre-agreed amount will result in a penalty – usually a maximum of 1.5% of the payment amount. Financial institutions earn a profit from the interest earned on the loan, any partial or full repayment of the loan means a loss in interest income. As a result, the penalty helps compensate for this loss.

6. Stability in interest rate

Since HDB loan interest rates are revised quarterly in line with changes in the CPF rate, it has been the same for over 10 years. Interest rates, as well, remain unchanged. HDB loans, therefore, offer more stability than fixed income loans that are only fixed for 3 to 5 years. This does not mean that there is no fluctuation in HDB interest rates. For example, in 1990 rates showed more volatility.

Video about How Many Oz Of Formula For 12 Month Old

You can see more content about How Many Oz Of Formula For 12 Month Old on our youtube channel: Click Here

Question about How Many Oz Of Formula For 12 Month Old

If you have any questions about How Many Oz Of Formula For 12 Month Old, please let us know, all your questions or suggestions will help us improve in the following articles!

The article How Many Oz Of Formula For 12 Month Old was compiled by me and my team from many sources. If you find the article How Many Oz Of Formula For 12 Month Old helpful to you, please support the team Like or Share!

Rate Articles How Many Oz Of Formula For 12 Month Old

Rate: 4-5 stars
Ratings: 6617
Views: 78863331

Search keywords How Many Oz Of Formula For 12 Month Old

How Many Oz Of Formula For 12 Month Old
way How Many Oz Of Formula For 12 Month Old
tutorial How Many Oz Of Formula For 12 Month Old
How Many Oz Of Formula For 12 Month Old free
#Explaining #Advantages #HDB #Loans #Bank #Loans #Abridged #Version