N & G would like to share their experience of going through the bumpy road to apply for HDB flat. By the grace of God, through one time application, they are able to get their first house. So they would like to share their experience and also hope it help others to clarify or understand the way to apply for steps. Of course, as mentioned it was by the grace of God, they get their house through one time application but also God send an angel to help them through the application. The angel was N's poly buddy, Jero.

Well, what are the things suppose to do?

Before applying the flat, both of you would need to calculate your income whether both of you have the ability to buy a flat. It is good to calculate, it helps to understand how much will you need to pay and what will be your repayment period if both of you got a house.

Well, it wasn't easy to calculate income. Both N & G have a hard time of calculating their incomes time after time to ensure they have the abilities and not tight down with loan repayment in the near future. Thank God for Jero who also assist them in helping them to understand how should they count.

How to calculate?

Knowing what will be the cost involve:
- S$ 10 application fee
- S$ 2,000 for booking the flat (refundable after sign the first agreement)
- First downpayment ( 5% for first timer - it can be paid using CPF if both have sufficient)
   > Include Stamp duty and Conveyancing fees.
Balance of the payment will be upon collection of keys

Both of you need to know where you want to apply and what will be the cost of the house. After both of you find out the cost of the flat, you need to understand what are both of your annual incomes.

Step 1:
Calculate both of your CPF to whether both of you are able to make the first downpayment. (Using cash for downpayment is not recommended, it will be hard on both of you once the loan kick in. However, if both of you have excess cash, you may do so.)

Step 2:
Calculate the average of both annual income across the 1 year of working. This is to helps both of you to know what will be the Additional Housing Grant (AHG) you will be able to get. - This applies to first timer getting flat. You may refer to -> http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/BuyingNewFlatAdditionalCPFHousingGrant?OpenDocument

Step 3:
Calculate how much housing loan will you need and what will be the repayment like in the near future. Once you get the figure, you will be able to know how much would both of you need to take home in order to sustain the flat.

After doing these 3 steps, it will be give both of you understanding on whether both of you are able to afford a flat. We hope this will helps you and we hope all couples are able to build their home together.

Stay tuned for Part II to apply the flat.

xoxo
N & G