Assuming I use the abovementioned Couple B’s income bracket ($5,501 to $6,000) as an example. Their average gross monthly income is as follows: Husband = $4,000 Wife = $4,000 Child 1 = $5,000 Child 2 = $3,000 Child 3 = $5,000. What type of HDB flat can you afford given your current salary?Recalling how Minister of Home Affairs & Minister for Law, Mr. K Shanmugam mentioned about the unrealistic real estate goals of young Singaporeans, we pondered about what is the dream home we can afford given our current wage levels.With the Mortgage Servicing Ratio (MSR) being brought down from 40% to the current level of 30%, we have to consistently be mindful of how our wage levels will determine the type of dwelling we are able to afford.Though it may seem unbelievable, the cheapest HDB apartment costs only $17,500, once you factor in deduction from government grants.We will assume that applicants are first-timers who are eligible to enjoy the Additional Housing Grant (AHG) and Special CPF Housing Grant (SHG).Grants amount ranges from $0 to $80,000 depending on household income. Average nominal and real monthly household income rose for all income groups over the last five years. The largest HDB (3Gen) is still affordable for the higher income bracket. Fret not, ask our community here!Still have more questions after reading the article? This is because they enjoy lower grants. using one person’s CPF to make payments for the HDB housing loan).Should you perform cash top-ups on top of your CPF payments in order to ‘afford’ that house?But if you’re using money from your monthly household income (aka cash top-ups) to supplement your CPF contributions, then you’ll want to be very careful.In the unfortunate event where either you or your partner are unable to continuously bring in that extra amount of money to meet your monthly mortgage, you’ll find that your finances will be severely stretched.Still have more questions after reading the article? We assume homeowners will make a 10% down payment and borrow the rest at an interest rate of 2.6% per annum for 25 years.The lower your household income is, the lesser you need to pay each month for your monthly mortgage. Average Monthly Household Income by Income Quintile and Type of Dwelling, Quinquennial Ministry of Trade and Industry - Department of Statistics / 06 Feb 2017 The Singapore Department of Statistics undertakes the Household Expenditure Survey (HES) once in 5 years to collect detailed information from resident households in Singapore. Household monthly income per person is calculated by taking the total gross household monthly income divided by the total number of family members living under one roof. Feel free to Learn together with like-minded Singaporeans at the Employment income remained the largest source of income among households. This includes amortisation of annual bonuses (1/12 of the amount) but excludes taxes. They pay about $1,688 per month, which represents about 20% of their monthly wage for those in the $8,001 – $8,500 bracket.So the golden question is “which type of HDB should I buy based on my monthly wage?”Using the MSR as a guideline, we take the monthly mortgage payment and have it divided by 30% to obtain how much you would need to earn in order to purchase the type of HDB you aim to get, and still be within the MSR.As long as the amount is above your household income bracket, we would locate it as N.A.
On a per household member basis, average monthly household income grew at a faster rate, to $3,940 in 2017/18, up from $3,296 in 2012/13. Incredibly, a household with less than $1500 income per month, will only need to pay $71 for a studio apartment. In 2017/18, employment income accounted for about 79 per cent of total household income. the monthly mortgage for a 3-Room HDB BTO is relatively manageable at under $1,000. It also shows that the 5-room HDB and above should only be targets for those earning a minimum household income of $5,500 or more.Are you intending to make your first HDB purchase soon? In other words, average HDB prices First of all, you will need to make at least a 10% down payment if you intend to take a HDB housing loan. Their average gross monthly income as … That means you will not be eligible to make the purchase of that HDB type because your monthly income would be insufficient to sustain the mortgage based on not using more than 30% of your monthly income for mortgage repayment.As you may have noticed, 3-room HDB would be eligible for most household income categories.
A household with only 2 members is better off than a household comprising of 5 members, given the same household income. They would pay around $789 a month on their mortgage for a 3-Room HDB BTO. Should you just buy the largest flat that you can afford?What if you only wish to live in the flat until you meet the Minimum Occupation Period (MOP) and want to sell it?Are there any considerations that you should think about when deciding between a 3-Room, 4-Room, or a 5-Room flat?Before we get ahead of ourselves, let’s do a little math to find out: Note: this price and income range is ONLY a guide, a flat in a mature estate is obviously going to cost moreFeel free to apply my calculations to your respective BTO or Resale flat purchase to see which type of HDB flat you can comfortably afford.And if you’ve got questions about buying your first property, why not ask our friendly The only HDB flat types which this estate doesn’t offer is a studio flat and the new Effective 11 Sep 2019, HDB rolled out a new grant, This replaced the Additional and Special CPF Housing Grant.Naturally, the final amount you qualify for will ultimately depend on your average monthly income. [1] Household monthly income per person is the total gross household monthly income divided by total number of family members sharing the same address (as reflected on the NRIC or Birth Certificate). Fret not, ask our community here!You can contribute your thoughts like Kenneth Fong Incredibly, a household with less than $1500 income per month, will only need to pay $71 for a studio apartment.The largest HDB (3Gen) is still affordable for the higher income bracket. They pay about $1,688 per month, which represents about 20% of their monthly wage for those in …