Apply BTO as a Student

Introduction

BTO is a heavily subsidized flat choice for Singaporean/PR. It’s a privilege for us but the downside is the long waiting time of 2 to 4 years. 2 years for BTO in certain non-matured estate, 4 years for the rest. Being an informed millennial, no doubt we will try to get around this by applying for BTO earlier. The best time to apply is when schooling since we have to wait anyway. (M.M. does not recommend rushing into BTO without proper financing and discussion with your other half)

There are two sayings that are commonly mistaken by students applying for BTO like student getting maximum grants and students will definitely get rejected for HDB housing loan.

Myth 1

With Zero Income, Students are able to get 80k Max Grant!

Fact:
With Zero Income, HDB will not even offer you housing loan (See Myth 2), let alone housing grant. Using Example 2 from HDB.

Mr and Mrs B are not eligible for the AHG/SHG as neither of them has been continuously employed for 12 months.

How about Full-time student do part-time work for 12months? Will they be eligible for grants? 
Nope. Part-time work will not be considered.

• You will not be considered as employed if you are a full-time student taking up part-time work

What can we do to get housing grants as a student?
We will be considered as employed if we receive stipends that are work-related.
For example, conduct teaching/ research work for the educational institute giving the stipend
(Scholarship Allowances are not considered)

Or… pray that other half has already started work for 12 months hehehe.

During my year 2, I’ve considered doing research work for prof in exchange for stipend. Laziness kicked in during year 4 hehehe… wasted…

Myth 2

Students are not credible enough for HDB Loan Eligibility A.K.A. HLE.

Fact:
True enough, students are not credible sources of income. What if we fail our subject and drop out? Even if we graduate, what if we cannot find a job during downturn? What if what if what if… It will be a huge property bubble if HDB approve loan for students with low credibility.

However! Not if we can prove otherwise.
(these are from my personal experience, may not be 100% true to everyone)

M.M. STORY-TELLING

It was my final year when I applied for BTO. My other half still has 2 more years to go. Should we simply submit HLE application, we will definitely be rejected as we are considered unemployed.
(Minimally 3mths for HLE income document)

So we tried going through the Appeal route by emailing HDB Customer Service at HDBSales@mailbox.hdb.gov.sg & RF1@hdb.gov.sg (or call them up at 6854-3592) stating our Appeal Reasons:

M.M. Profile
– Final year
– On Scholarship Program
– Bonded to Company A for 4 years after graduation
– No CPF except for NS.

M.M. other 1/2
– 2 years to gradutation
– Bonded to Company B for 5 years after graduation.
– No CPF.

After understanding our situation, HDB Customer Relations Manager from Credit Operations Section wrote us an email.

In order for us to evaluate your appeal, please provide us the documents listed in Annex.  You may email the documents to hdbcredit@mailbox.hdb.gov.sg (each email is restricted to 6 MB size)

Annex

1. a copy of [M.M. and Other Half] student card;
2. letter/contract from [M.M. and Other Half] company stating course details, commencement date, duration of scholarship funding, monthly allowance amount (if applicable), details of bond to serve after graduation, estimated date of graduation and expected starting salary;
3. [M.M. and Other Half] latest CPF statements showing the balance in the ordinary account and past 15-month CPF contribution history;
4. [M.M. and Other Half] Credit Bureau reports (you can request a copy either on-line at creditbureau.com.sg, at any of the SingPost branches or directly at the Credit Bureau office located at 2 Shenton Way #20-02, SGX Centre 1 Singapore 068804); and
5. details of the new flat you intend to buy (i.e. flat type, location, estimated purchase price, etc.

This gave us hope and being Kiasu, we want to seize this rare opportunity to get our HLE approved.

1. Expected Salary can be taken from latest Graduate Employment Survey (You can take from your company HR too. My company offer low pay so I use GES instead.)
   2016 GES NTU | NUS | SMU.
2. Scholarship Allowance & Funding details can be taken from your Scholarship Agreement or Company HR.
3. Estimated date of Graduation can be requested from your Course Department Admin.
4. CPF details can just print from CPF. Login using Singpass.
5. Credit Bureau reports can obtained from creditbureau.com.sg for a small fee ($3/pax i think). Login using Singpass.
6. Estimated Purchase Price can be taken from HDB. If the unit has yet to release for balloting, you can take estimated price from SRX as they do estimation before HDB release unit price.

The entire HLE Appeal Evaluation Process took them about 14 days before they came back to us with good news (=

In view of the circumstances, we will exercise flexibility and offer an housing loan of up to $450,000.  You may retrieve a copy of the HDB Loan Eligibility (HLE) letter using Singpass via My HDBPage.  Do take the time to go through the details of the HLE letter.

End of M.M. Story-Telling

Aiya… Worst come to worst
If really cannot, we still have Balance of Sale Flat, Resale Flat to pick after we graduate to reduce the waiting time. Or we strike TOTO so that we can buy BTO without getting any loan hehehe.
(M.M. don’t buy TOTO/4D cause he is a statistic believer)

Hope my experience gets to help some of yall. For housing unit price evaluation, do take a look at these two posts.
1) Guide to buying property – Model 15
2) Why is Resale Cheaper than BTO?

Cheers!
M.M.