4/29/2016

CPFBoardOurFirstHomeCalculatorAssumptions

OurFirstHomeCalculator
Assumptions
Theprogramadoptsthefollowingassumptions.Those
markedwithanasterisk*canbechangedaftertheinitial
resultsarecomputed.

1. Iftherearetwousers,theaverageageisadoptedforthe
loanperiodcomputation.
2. Thedebtservicingratio(orpercentageofgrossmonthly
incomethatcanbeaffordedtobespentonhousing)is25%.
ThisisbasedontheaverageDSRfornewflatsinnon
matureestates*.
3. Theloaninterestrateis2.60%perannum.Thisisthe
currentHDBhousingloanconcessionaryinterestrate*.
4. Themaximumloanrepaymentperiodis30years*.The
maximumloanrepaymentperiodforHDBloansis65years
minusbuyersageor30years,whicheverisshorter.The
maximumloanrepaymentperiodforloanstakenthrough
financialinstitutionsis35years.
5. Themaximumageatwhichtheloanmustberepaidis65
yearsold*.
6. Forusersaged2154,theprogramassumestheloanis
repaidby55.Forusersaged5564,theloanisassumedto
berepaidby65*.
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CPFBoardOurFirstHomeCalculatorAssumptions

7. Programassumesthatthepropertypriceisequalto100/80
or100/90ofthecomputedmaximumhousingloan,for80%
and90%housingloanrespectivelyandthatthereisno
cashovervaluation.
8. ForHDBflatfinancedwithHDBloan,thedownpaymentis
10%andmaximumloanis90%.Foranypropertyfinanced
withbankloan,thedownpaymentis20%(thefirst5%must
becash)andmaximumloanis80%.Wherealoantenure
exceeds30yearsorloanrepaymentperiodcrosses65
yearsofage,thedownpaymentis40%andthemaximum
loanis60%.
9. ForHDBconcessionaryloan,theentireCPFOrdinary
Accountsavingsbalancewillbeusedtoreducetheloan
required.Forbankloan,theprogramattemptstoreserve
CPFsavingsequivalenttoabout6monthsofmonthly
instalmentsascontingencyfunds,andusetherestto
reducetheloanrequired.
10.TheValuationLimitisthelowerofthepurchasepriceorthe
valueofthepropertyatthetimeofpurchase.Thisprogram
assumesthattheValuationLimitisequaltothepurchase
priceandmarketvaluation,andthereisnocashover
valuation.TheCPFWithdrawalLimitis120%ofthe
purchaseprice.
11.Stampdutyisassessedat1%ofpropertypriceforfirst
$180,0002%onthenext$180,000and3%therafter.
ProgramassumesthatCPFwillbeusedtopaythestamp
feeswhereverpossible.
https://www.cpf.gov.sg/eSvc/Web/Schemes/FirstHome/Assumptions

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CPFBoardOurFirstHomeCalculatorAssumptions

12.Legalfeesisassumedtobe1.5%ofpropertyprice.
ProgramassumesthatCPFwillbeusedtopaythelegal
feeswhereverpossible.
13.CPFhousinggrant,agentscommissionandHome
ProtectionSchemepremiumarenotincludedinthe
program.
14.IfuserhasinsufficientCPFOrdinaryAccountsavings,the
programassumesthatcashisusedtocoverthedifference.
15.Userscurrentcashbalancesarenotfactoredintothe
calculation.Ifuserhasexcesscashbalances,itcanbeused
toincreasethepossiblepurchaseprice.

Thiscalculatorisintendedtoprovidegeneralguidanceon
housingaffordability.Duetotheassumptionsand
computationalapproachadopted,theresultsmaynot
necessarilybesimilartothoseprovidedbyHDB/banks.

https://www.cpf.gov.sg/eSvc/Web/Schemes/FirstHome/Assumptions

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