Can they afford a $600,000 resale HDB with the current situation as described above?

To determine if you can afford a $600,000 resale HDB flat given your current situation, here are the key factors to consider:

Sale of Current Flat

• You will receive $76,687 as net cash proceeds after selling your current 3-room HDB flat, as calculated earlier.

Financing the New Flat

• The maximum HDB loan you are eligible for is $500,000.
• You have a grant of $85,000 available.

Down Payment and Other Costs

• For an HDB loan, you typically need a down payment of 10% of the flat’s value. For a $600,000 flat, this would be $60,000.
• You can use your CPF and the net cash proceeds from the sale of your current flat to cover this down payment.
• Additional costs such as Buyer's Stamp Duty (BSD) and other fees will also need to be considered.

Loan and Grant Utilization

• The HDB loan of $500,000 plus the $85,000 grant will cover a significant portion of the purchase price.
• The remaining amount after the loan and grant would be $600,000 - $500,000 (loan) - $85,000 (grant) = $15,000.

Affordability Check

• You need to ensure you have enough funds for the down payment and other costs. Your net cash proceeds of $76,687 should cover the down payment and other expenses.
• You must also meet the Total Debt Servicing Ratio (TDSR) of 55%, which means your total debt obligations, including the new mortgage, should not exceed 55% of your gross monthly income.

Given these considerations:
- You have sufficient funds from the sale of your current flat to cover the down payment and other costs.
- The HDB loan and grant will cover the majority of the purchase price.
- However, you need to ensure that your monthly income can support the mortgage repayments within the TDSR limit.

If your monthly income is sufficient to meet the TDSR requirements and you can manage the monthly mortgage repayments, then you can afford the $600,000 resale HDB flat. It is advisable to use an affordability calculator available on EdgeProp Singapore to get a precise assessment based on your income and other financial obligations.