Same 75% LTV, Different Borrowing Power | HDB vs Private

Video description from @therightmovesg

Seeing the same 75% LTV can make HDB and private-property financing look more similar than they really are.

LTV informs the maximum share of the property’s value that may be financed. Your actual borrowing capacity is then assessed against the relevant servicing framework.

For private property, TDSR is capped at 55% of gross monthly income across all monthly debt obligations.

For an HDB flat, MSR is capped at 30% of gross monthly income for mortgage instalments. If the HDB is financed through a bank, TDSR applies too.

This is why a lower purchase price doesn’t automatically mean the property will be easier to finance.

I prefer to settle the financing framework first. Once you understand what your finances can responsibly support and how much breathing room should remain after the monthly instalment, the suitable property range becomes much clearer.

The numbers should support the wider property plan, not simply the purchase price.

Save this before comparing HDB and private property.

#AlvinChinRealtor #TheRightMoveSG #SingaporeProperty #PropertyFinancing #HomeLoan