How much PR has to pay to afford 1,200,000.00 HDB?

To afford an HDB flat priced at $1,200,000 as a permanent resident (PR) in Singapore, you would need to consider the following costs and requirements:

Down Payment

If you are taking an HDB loan, the down payment is 20% of the purchase price.

• For a $1,200,000 HDB flat, the down payment would be $240,000.

This amount can be paid using cash, your CPF Ordinary Account (OA) savings, or a combination of both.

Payment Schedule

• If you opt for the HDB Staggered Downpayment Scheme, you can pay the down payment in two instalments: 5% ($60,000) during the signing of the lease agreement, and the remaining 15% ($180,000) when collecting the keys.

Cash Component

• If you are using a bank loan, the down payment can range between 25% and 45% of the purchase price, depending on the loan terms. However, for an HDB loan, the cash component is not strictly required to be paid upfront, as you can use your CPF OA savings.

Example Breakdown

• With an HDB loan: $240,000 (20% of $1,200,000)
  • This can be paid in cash, using CPF OA savings, or a combination of both.

Additional Costs

• Besides the down payment, you should also consider other costs such as the Buyer's Stamp Duty (BSD) and any additional fees associated with the purchase.

In summary, to afford a $1,200,000 HDB flat, a PR would need to pay at least $240,000 as the down payment, which can be covered using cash, CPF OA savings, or a combination of both.