When you choose to go with the HDB home loan offered by Hong Leong Finance, you can get financing up to 75% of the property value. It comes with a loan tenure of up to 30 years or until you turn 70 years old, whichever is earlier.
Interest Rates for Hong Leong Finance HDB Housing Loan
The following are the interest rates charged on this HDB housing loan:
||Interest Rates for 2-year fixed package
||Interest Rates for 3-year fixed package
||Variable Rate Package
||2.18% p.a. (fixed rate)
||2.5% p.a. (fixed rate)
||2.38% p.a. (fixed rate)
||2.6% p.a. (fixed rate)
||2.58% p.a. (variable rate)
||2.75% p.a. (fixed rate)
||3% p.a. (variable rate)
||3% p.a. (variable rate)
Note: The variable rate is pegged to HDB Home Rate (HHR) that presently stands at 4.65% p.a.
Benefits and Features of This Loan
This is what the loan has to offer:
- Get financing up to 75% of the value of the property.
- Choose from flexible loan tenures of up to 30 years or till the age of 70 years, whichever occurs earlier.
- There are dedicated relationship managers who will assist you in case of any enquiry.
- You have the option of choosing a bridging loan that will help you in making the downpayment on your new property while you are still waiting for the sales proceeds from your existing property.
Am I Eligible for This Loan?
In order to be eligible for this home loan, you need to meet the following requirements:
- You should be a Singapore citizen or a Permanent Resident.
- You should be buying an HDB flat directly from HDB, from the resale market, or you are refinancing your existing HDB Home Loan.
You may be required to furnish all the applicable documents from the list below to apply for this HDB loan:
- Copy of your NRIC/Passport/Work Permit/Employment Pass.
- Statement of your CPF account.
- Income Tax Notice of Assessment.
- Proof of income: Payslip/latest 15 months CPF Contribution History Statement/bank statements/employment letter.
- Tenancy agreement, if applicable.
- Valid valuation report, if applicable.
- Details of the HDB flat, if applicable.
- Option to Purchase, if applicable.
- Statement of all the outstanding credit facilities.
- Latest statement from your current financier/HDB, in case of refinancing.
- Print out of the account summary on myTax Portal from the IRAS website.
- CPF Private/Public Housing Scheme Withdrawal, if applicable.
- Print out of “My Property Portfolio” available on myTax Portal from the IRAS website.
What Is the Application Process?
You will have to fulfil these steps to apply for this home loan:
- Get all the relevant documents and visit any of the Hong Leong branches to have a discussion with the bank manager.
- Provide the requested documents for applying and making the declaration.
- Talk about the loan packages that are available. Select the one that is most suited to you and submit the loan application and documents for processing.
- Once the loan is approved, you need to accept and sign the offer letter.
- You need to appoint a Hong Leong Finance panel lawyer to ensure proper mortgage documentation.
- You will need to sign this mortgage document in your lawyer’s office.
- Your lawyer will then make sure that all documents are in place before submitting it to Hong Leong Finance to disburse your loan amount.
- Once all the terms and conditions for this loan are met, the loan will be disbursed in the form of a Cashier’s cheque/order.
Here Are What Your Repayments Will Look Like
The following is what your repayment will look like assuming you borrow S$100,000, for a period of 4 years:
||2-year Fixed Rate
||3-year Fixed rate
|1st year monthly instalments
|2nd year monthly instalments
|3rd year monthly instalments
|Monthly instalments thereafter
If you apply for an HDB Home Loan from Hong Leong Finance today, you can choose from three available interest rate packages along with financing of up to 75% and an option of a bridging loan with your home loan.
Explore the Other HDB Home Loans Offered By Banks:
Explore the Other Loans Offered By HLF Bank:
Frequently Asked Questions (FAQs)
- While availing HDB home loan from HLF, if the buying price/purchase price is higher than the valuation, then can the difference be financed?
No, any bridging loan can’t be granted for this amount, and the difference amount must be paid in cash.
- Is there a maximum limit on the loan amount that can be borrowed for purchase of a HDB flat?
Yes, you can avail a maximum loan of up to 80% of the purchase price of the flat or its valuation, whichever is lower. The valuation must be determined by an HDB assigned valuer.
- Will a bridging loan be granted in case the sale proceeds obtained from my existing flat can’t be used to pay for the new purchase in due time?
Yes, a bridging loan can be granted depending on the assessment of your loan eligibility. Having said that, a bridging loan can’t be granted singularly without a term loan.
- Can my CPF Savings be used towards the purchase of the HDB flat?
Yes, you can use CPF savings towards the purchase of a new HDB flat. Not only that, payment for stamp duty, repayment of bridging loan, EMIs, legal fees are subject to CPF Board’s policy on usage of CPF savings.