News and views from an unique perspective

Singaporean earning $2,500 monthly cannot obtain loan from HDB to buy flat

Posted by temasektimes on July 14, 2012

Buying a flat is a problem for me. I am self employed and my wife is a house wife. Earning about 30 k yearly but when I try to buy a flat and apply for housing loan eligibility, HDB ask for my bank statement.

After submitting my statement for 1 yr, they telling me my loan is not approve. Reasons is that I have not enough saving in the bank and HDB cannot give me a loan. They want me to have constant of saving in order to obtain a loan from them afraid that I will not pay for the loan. They are telling me HDB is only giving loan to those who is rich and to those who put their saving in the bank.

In the first place if I have the cash I will not need to apply a loan from HDB and I will buy a condo or bungalow already. In the newspaper, I can see advertisement that family enough $900 per month can buy a flat and get a loan from HDB. Now I earn $2500 cannot get a loan from HDB.I need to save up a year to show them in order to obtain a loan from them.

My wife and mother is not getting along very well, we often quarrel over housing matters but I got to wait for 1 year to obtain a loan. Hopefully, we can go through this 1 year, if not I will have to divorce over this housing matters and my daughter will have to grow up in a broken family. If all this will to happen , I will thank the govt and HDB for letting all this to happen.

Wish me luck!


*The above was first posted as a comment on PM Lee’s Facebook.


66 Responses to “Singaporean earning $2,500 monthly cannot obtain loan from HDB to buy flat”

  1. Bernard Deng said

    Does not every Singaporean has a roof over his head?

  2. kbkb said

    I think u stay in hougang or aljunied is it?
    What u said is not true because I have a relative also don’t have savinf, earning less than 2k per month and recently got a new flat.

    • i say what i think only... said

      they are skeptical of people who do not have fixed income (fixed job) with fixed cpf contribution. remember the case of the guy who earn 5k a month, self-employed. cannot get sufficient loan, in the end forfeit all deposit

    • Lim said

      How has staying in hougang or aljunied got anything to do with not getting a HDB loan? Are you implicitly hinting opposition wards are at a disadvantage? You also think Spencer Sim the writer is lying (`what u said is not true’) and yet he is not afraid to post untrue matters in PM Lee’s FB?

    • GodBlessSG said

      Kbkb, thanks for sharing your relative’s case. It just confirmed my belief.
      I think the issue here is not about how much Mr Spencer Sim is earning. It is how much you contribute to CPF and IRAS Tax.

    • Dan said

      If he is staying in hougang or aljunied and got his HDB loan rejected because this, then we citizens are really stupid to have given PAP the mandate to do whatever they want

    • sg said

      Kbkb, is your relative self-employed?

    • kenza said

      kbkb, how do you know it’s not true? Your relative employ or self-employ? Loan amount/ loan rejected are usually self-employed.

  3. Don said

    the wealthy and the poor gap is getting bigger. such obstacle is the contribution to the gap??

  4. MY advise is go for OCBC bank loan ..they can help.

  5. FanaticD said

    this is very true. the story that appears in ST does not gives the people the full picture. it just mention that the husband is earning 1K or less but it never state how much the wife is earning. thus if the wife is earning more, they have more than enough to take up a loan and purchase a unit. this is reality. go to hdb website and try the HLA and see what you get using 1K as a salary

  6. asd said

    My wife and mother is not getting along very well, we often quarrel over housing matters but I got to wait for 1 year to obtain a loan. Hopefully, we can go through this 1 year, if not I will have to divorce over this housing matters and my daughter will have to grow up in a broken family. If all this will to happen , I will thank the govt and HDB for letting all this to happen.

    instead of blaming gov, i can sense you are wishing for divorce.
    why don’t you work hard to improve the relationship.
    adversity will forge a better bond

    • Mudita said

      ASD, you must be living in a “you own created heavenly world” !
      Who don’t quarrel or get angry at each other? You think you are a saint or prophet.
      ASD, look at yourself in the mirror carefully.

  7. JohnTan said

    My pay is $3K and my HDB loan application was rejected too. They claim since I am self employed, my income is not stable and ask me to take bank loan!! What is this? So they mean ALL those who are self employed cannot take HDB loan?? And all those who are working as employees guarantee will have a job forever, no retrenchments will ever happen to them?? Really is rubbish!!

    • i say what i think only... said

      my thoughts exactly. the biggest fear for all BTO applicants is to lose their job prior to keys collection. this will end up with insufficient loan amount (top up with cash. how to top up when u lose job) and possibly forfeit deposit.

  8. Ponders said

    $2500 solo income you dare to get married and buy flat somemore??

    • kenza said

      Ponders: What’s wrong with earning only 2.5k and get marry? During the 60s to 90s our parents also no $$. They work hard for the family to have us.

  9. Moe Gan Thai said

    Don’t worry PM Lee has said he will take care of all Singaporeans.

  10. Demsond said

    I got my loan rejected by HDB in 2011 based on the reason that my income was not stable – I was self-employed. What a stupid reason and “thanks so much HDB” for helping me along with my business…

    • kenza said

      Demsond: don’t give up ya. Try apply again next year. Best is to prepare yourself before you apply.

      1. Declare higher amount next year ( but have to pay more tax)
      2. Make sure you have healty credit ( such as credit card loans or car loans)
      3. No default payments( cash line/ credits or car loans)
      4. Try to open a join acc with your wife with more input then out.
      5. Contribute money to your CPF, afterall its still your own money when you buy HDB as downpayment. ( CPF is only useful for buying HDB)

      In a nut shell, it goes down to $$. The more $$ you have, the more well prepare you are.

  11. HDB don't loan to you because they have too many red tape...... said

    Govt talk more than they do, as usual. The people who get loan buy HDB flar is only a DEMO. In reality you don’t ALWAYS get it!

  12. Wolfglare said

    You should leave Singapore than reapply to come back as a FT….our government love FT….maybe that way you might get a loan or even discount from HDB

  13. just curious said

    Mr. Spencer, do you contribute to CPF?

  14. mahbok tan said

    Ayo yo yo yo….fellow SGporean…while I am hertbreak to hear daily news that have gone unreported in MSM but from the internet….why can’t the citizen involved ask for a letter or he himself make a letter and get the officer-in-charge to sign it and be responsible for his words..
    Next you can have a tent resort in ECP or Changi beach as your temporary home. DO NOT forget to quickly call Temasek Times to show your new Tent Resort home…..guess this will bring in the ATTENTION that SGporean needed. Give it a try….and good luck !!!

  15. kenza said

    John Tan and Demsond, you guys all not alone. My friend who work in AIA and earn an average of 80k a year was also rejected from HDB loan, even with all the income statement and bank statement. My close friend, also a self employ earn an average of 42k last year and was only approve 45k for his new flat HDB loan. For people who are under employment would be a diff….
    I took my 1st HLE on 2011 and was a self employ then with an average income of 55k ( 4.6k mthly on average), monthly self contribute of $700 to CPF yet they only approve me of 252k for resale? WTF? I got my 2nd HLE approved last month at 520k. Mor then 50%. Why such great diff? Reason was I declare under employ with a fix pay of 6k per month and 1.8k CPF contribute. So now you know why? Our Gov don’t care for as true blue singaporean anymore. They have lost the orginal mission and change into a profit organazation.

    Lastly,BUY NEW HDB/EC if you can wait. Now the resale market price for a 4-5 room cost around 400-600k exclude COV ( I met 1 seller who asking for 58k fix non neg for COV with no reno at all while the valuation 484k 4 rm flat) with 550k for 4 room? 600k i can get new condo with 2 rooms. So you see, ALL HDB VALUATION WAS MARK UP BY OUR GOV SO WE SINGAPOREAN WILL BE SLAVE FOR THEM AS $$ MAKING TOOLS. Get the picture?

    • Valance said

      may i know is your cpf self contribution to your ordinary account or medisave? i am self employed too and i only contribute to my medisave acc (this is wat the government request for self emplyed). but when i call hdb they say they wont be looking at cpf contribution for self employed when i apply hle. i am so confused… shd i contribute? which acc (ordinary or medisave) shd i contribute?

      • kenza said

        Hi, I feel for you and know what you mean. As i have mention from my other post to fellow bros, here’s the thing. As a self employed we have our disavantage such as no constance contribute of CPF and usually our income are base on market and are more expose to risk and such. So in a way, we are not as stable compare to employment. Honestly, just on medisafe is not enough. What they are more keen is your ordinary CPF contribution such as is it constance 12 mths or more and at what contribution amount. Pls do not make small contribution such as $500 or so to all cpf account as it only show thay you are not stable in your cash flow. I did a 12 mths 700 monthly contribution last time and was only approve 251k for a 4rom flat( 440k then) on my 2nd attemp after almost 1 yr, i did a contribution of 1.8k per mth for all cpf account and finally got approve at 520k with a join sav account of mthly 2k with my wife. They also take into consideration of your liablity such as credit card outstanding, car loan or persersonal loan as such. Give yourself 1 year time to prepare, 2 most important document that is your cpf of 12mths and join acc only in and no out. Hope it helps and good luck.

  16. hmmmmm said

    2500 salary and you married with a child + wife(no working) + mother…wtf are you doing?
    please lei, if not earning much please dun get married and make life difficult for you and your family, especially your child, only get married you and your wife each earn 5k or more…

  17. kenza said

    John Tan and Demsond, you guys all not alone. My friend who work in AIA and earn an average of 80k a year was also rejected from HDB loan, even with all the income statement and bank statement. My close friend, also a self employ earn an average of 42k last year and was only approve 45k for his new flat HDB loan. For people who are under employment would be a diff….
    I took my 1st HLE on 2011 and was a self employ then with an average income of 55k ( 4.6k mthly on average), monthly self contribute of $700 to CPF yet they only approve me of 252k for resale? WTF? I got my 2nd HLE approved last month at 520k. Mor then 50%. Why such great diff? Reason was I declare under employ with a fix pay of 6k per month and 1.8k CPF contribute. So now you know why? Our Gov don’t care for as true blue singaporean anymore. They have lost the orginal mission and change into a profit organazation.

    • Valance said

      can you share with me how they approve your loan? my husband is self employed, i am unemployed (studying). his monthly gross is 3.5k, and we have monthly savings of at least 1k (avg. abt 2k). he contribute to cpf medisave monthly (as requested by governement for self employed) but not ordinary acc (not required for self employed). we do not have any loans and we good credit records. can i know wat are the chances of getting a loan from hdb or bank?

      • kenza said

        Go for HDB Loan if possible. Also, you have to consider are you getting a resale or new? From my understanding he is the only income earner, therefore the loan amount may not be to your advantage unless he did a contribute of all CPF account and both you and your husband have a stable income,ECT you are working as an employ with fix pay and cpf contribution. End of the day, our HDB systerm works similar as any banks in Singapore. Show they with a proven record that you guys are stable with 12mths bank statement with ONLY ‘input’ and no ‘output’, not forgeting on your husband must have constance 12 mths or more cpf contribution. HDB wanna minimize their risk of default payment and amount given. Put yourself in their shoes and you will know what i mean.

  18. bb said

    There is a Minister who says sg ppl who earns $1000.00 can owned a HDB Flat. Go and see him

  19. AL said

    It is pretty amusing why there are people who always seem to blame someone or the govt for the matter, for something that don’t go their way.

    Just my 2 cents worth:
    The HDB is not a charitable organisation. They don’t simply disburse out the loans to anyone whom they have no confidence in. If a self-employed Doctor earns 8k a month, but does not contribute to CPF nor have a steady stream of savings to illustrate discipline and ability to repay the loan, HDB or the bank will still reject the loan application. You need to demonstrate
    (1) Ability to work/earn
    (2) Ability to save $
    (3) Ability to repay debt/loans
    before anyone dares to lend you $.

    Let’s be fair and reasonable. Will you lend a person $ if the person do not demonstrate the above 3 ability?
    Of course the HDB, being a govt body, should help as much as they can to provide the applicant a roof over their head. But there is only so much they can help. If, given the person’s income, he can only afford a 3 rm flat but he wants to have a 5 rm flat, then how?
    We all need to understand what we need and what we can afford instead of what we want. If we can’t get what we want, then work for it! Complain here and there and blame the govt will not get you anywhere.

    I am a self-employed too and I do admit there are really stupid red tapes within the govt bodies that contradict each other. While I myself have feedback to them about all these silly regulations, I don’t wait for them to act on it. It will take months or years for ALL big organisations to act upon a matter and change things.

    My life and my future lies in my hands, and I will work for what I want. Govt will not ensure that one live well and comfortable. Govt will instead try to ensure one will not die of hunger out in the cold. If you expect the govt to give u a comfortable life for those who don’t work for it (aka welfare benefit for the unemployed like in the States), then be prepared to pay even more for taxes.

    Which other country, given the age of Singapore, has made it possible for all to have a roof over their head?

    • Read before you comment. said

      Are u stupid? What are HDB initially intended for?

      • kenza said

        Yes, the mission and objective has change from our 1st Gen old guards to our useless 3th Gen minister who is only keen on making hugh profits from Singaporeans. Bear in mind that we are buying sg500k for HDB and not landed or private property, compare to the rest of the world. We have the world’s highest paid Gov, our cars are expensive, so does our tiny little flat we call home. All $ goes to gov. You guys do the maths.

    • mahbok tan said

      Aramak bro AL , why u so laik dat….u follow lor ha….!!! Tot HDB are for housing meant for the Citizen Of Singapore …..from the begining our parents can get loan so easy from HDB but now the grandchildren and or children very difficult to get loan …why….????
      Even our CPF money become the PAP GOVT money by making it compulsory to draw out later ….. u think COS all are stupid or blind when the law were tweak by the GOVT…..KNNBCCB….!!!

    • xue said

      I do concur with Al’s 3 pointers. For self-employed individuals, there is a need to be cash-rich when it comes to loans and such. Personally, I can’t say it’s entirely wrong since self-employed individuals shoulder significantly greater burdens.

      It’s walking on very thin ice when one attempts to purchase a flat with a combined household income of 2.5k , what with also not having income deposited into your account at the end of every month. I believe that the loan rejection due to insufficient savings should be a good caution for the writer – banks’ screening process might seem brutal but they are financial institutions afterall so they are rarely wrong with their estimations of repayment ability.

      Take it that they saved you from more disastrous consequences when you are no longer able to meet the repayments.

    • Thinker said

      I agree with you, AL. HDB is not a charitable organisation. If it grants loans freely despite noting that one doesn’t have much or regular savings in the bank account, it will soon incur huge sums of bad debts and guess what? You and I the taxpayers will pay more taxes to recover these bad debts.

      We are not sure if Spencer Sim is telling the truth. Firstly, is he self-employed? If he is, did he declare less than what he actually earns for income tax? Also, with $2500 a month, how can the wife don’t work? There was no mention of the wife being unable to work due to physical reasons. Let’s face it. In this society, can a mere $2500 support the entire family with mother, wife and children? Even with a 6k income from my spouse, I continue to work. You never know when the elderly in your family will fall ill and need astronomical sums of vitamin M to pay for their medical bills.

      Hence with only $2500 a month, it’s of little wonder that Spencer doesn’t have much savings yet he boldly and naively thought he could buy an hdb flat just because it’s from the ‘government’ and government will loan him the $ to do so? Let’s be realistic here.

      • Thinker said

        What I didn’t like about Spencer’s post was also the part where he started attributing his ‘potential’ divorce and conflicts with his family to the government. Why doesn’t he just start thinking about how to earn more $? Like getting the wife to work? He’s just thinking about himself…about why god is not helping him, why government is not helping him…he’s such a poor poor thing and god/government is only helping the rich…..well, he can continue to self-pity and lament on his poor fate. Things wouldn’t change till he decides to do something for himself. Remember, he’s not an elderly or needy person in our society. He’s an able-bodied man.

  20. lucifer said

    Hmm… thers another way though. but cant reveal it coz some spy from hdb might read it n find out! yikes!!

  21. kiang kee lian said

    Dear Spencer , give the facts of your story. Don’t blame n kpkb …. I’m sick of temasek times posting such irresponsible articles !

    • mahbok tan said

      Dont like dont read la
      ayo yo why u KPKB here …..or you can read MSM better rite….!!!

      Point is we need to trawl the internet for news that MSM do not wiliing to report or write . this is to follow what the GOVT of the DAY wants US COS to know only …..!!!

    • jaded said

      the facts are already stated. what more do you want? dun be stupid

    • kenza said

      Agreed with MBT, if don’t like then don’t read ya. No one force you. Go read Gov ST better. They only let you read what they want you to read.

  22. 龍的传人 said


    • Jack said

      yes, you are right, I totally agree with you, our minister says $900 per month salary can afford to by a HDB flat, Let’s ask the Minister to demonstrate his maths on this particular case. All of us (i mean 60%) believe that you can and you never lie to us. We trust you!


    • good said

      That’s right. $2,500 can buy two HDB flats with money left over for weekly trips to the casinos. Life as a Singapore is really great.


      Go to chinese only forum if you do not want non-chinese to read what you have to say…..

  23. kbkb said

    My relative is employed. But why self employed will face such problem? Doesn’t the govt encourage entrepreneurship? Sad

    • kenza said

      Yes for FT, not local. Entrepreneurships are just smoke screen. Just like NTUC can advertise 10k worth hiring ads on sat paper but still recurite cheap labour from china and phillipine. Those are just wayang for people to see.

  24. weak justice said

    good! clap clap clap good!!! close all these fanatics down!!!

  25. solaris8899 said

    papa on one hand encourage local to get married and have babies, but on the other hand new hdb price rocket high, and long queue to apply.

    remember our papa said, making 1k per month also can own a hdb…

    so the answer is -> to wait long long?

  26. Naivety said

    Hey Spencer,

    Did you vote for the pappigs in the 1st place?

  27. kaching said

    Next time, get your wife work for a while with CPF, at least 3 months, then declare she previously work odd job, then at least HDB will see you are capable to pay.
    You declare income 30K per year but got declare to income tax or not, self employed must be at two years income tax.
    If not, go rent home at JB, since your wife not working what.

  28. Disappointed said

    This self-entitlement mentality really saddens me…

    Yes, Mr Sim, it’s great that you earn $2,500 a month, way more than the $1,000 cited.

    Yet, if you are not even able to ensure that you save regularly, how do you convince anyone (be it the bank, the gahmen or even your friends) to lend you the money? So basically, you are saying that the lender should just stomach the risk that you could be defaulting on your loan… On what basis? Goodwill, sympathy, friendship?

    Gosh… I mean, seriously? Sigh…

  29. Excess Fund Lending Firm said

    Has your bank said no and you are disturbed because you can not fulfill your financial desires? Why not come to us for CASH @ Excess Fund Firm a sure and reliable place where all financial barriers are broken down at ease.

    We Offer Private, Commercial and Personal Loans with very Minimal annual Interest Rates as Low as 3% within 1 year to 10 years repayment duration to any part of the world. We give out loans within the range of (£1,000.00 GBP and £5,000,000,000.00 GBP or its equivalent in EUR & USD).

    Contact us via our representative on ( We are government approved.

  30. Chong Wei said

    I am one example that the HDB will not grant me a loan. Both my wife and I are self employed but we do not pay taxes as we don’t earn alot, hence when we applied for a a BTO flat we were told that if we cannot produce the Notice of Assessment, we cannot get a loan. Now when the flat is ready we will have to pay up everything by cash, which is not say impossible but will be risky since we don’t know if we will suffer a loss in selling our current flat or not.

    Really f-up, this kinda HDB rule dunno who came up with it. They will only grant a loan to people who got job and lotsa $$$ in the bank. Its just wrong.

    • kenza said

      Alot have change since 10 yrs ago for HDB Loans. Last time combine income of 4k alos can get HDB loan. Our gov are only keen in $. We are just a tools for them to milk. My advice is, don’t expect the gov or MP’s to help you. I had my share of experience from my MP and it’s waste of time. Help yourself before they help you.

  31. My Name Is Mrs.Lisette Robinson Garrett From Canada, An X-Scam Victim and how i get back on my feet and be a personal business owner with cars and landed properties…. This is to announce to the general public about a legitimate lender online.


    I was in a critical search of a genuine loan lending company were i can obtain a loan of $180,000.00USD some lender’s that Came to me sheep clothing i never know they where fraud until i was given the terms of their loan and i agreed eventually i was scammed they scammed me of my hard earn money up to four lender’s that scammed me the sum of $27,000.00USD and i though that all is over that there can never be any other genuine lender until my Husband’s Friend Mr. Garrett Lugard the general manager of Cotsat and cotsat company told me that there is a genuine lender that he obtained a loan of 1.5 Million Dollars At 3% interest rate From that makes him own a private business and a house of his own he Referred me to a company Mr Potter Mark Loan Company , Where he obtained the loan of ($1.5 million Dollars) i told them how referred me to them i applied for a loan of $180,000.00USD after my application and i sent to them the useful information for them to process my loan after 4hours i received a notification From their company that my loan has been approved and processed in the next 4hours my loan of $180,000.00 Dollars was transferred into my account. And i promise them for coming to my rescue i am going to spreed the good news to the entire world ABOUT JUNIOR LOAN COMPANY IS THE BEST IN THE WORLD.

    And tell them i Mrs.Lisette Robinson Garrett referred you to them and your wish will be fulfilled…

  32. Linda Mesa said

    be careful there.nobody can help you here or even suggest how you can get financial help.any answer of a loan lender to your question,you MUST ignore,because they are SCAMS…real SCAMS…i was a victim of which i was ripped thousands of dollars….Well thank God for a Christan Loan Officer,I was referred to by my cousin,who is by name,Mr Potter Mark Of Cherish Microfundings Inc.They made my life a valuable one,and gave it a meaning.I was approved loan of $31000.00 USD AND IN 48 HOURS after meeting up to their necessary requirements,my loan was deposited in my bank account.Though I was very nervous with the loan firm at the first place due to my previous bad experiences,especially when the issue of me settling the transfer charges came up,I hold on to my faith due to the fact that my relative referred me,got it cleared,and as God should have it.little did I know that my financial shortcomings has come to a final HALT .If not for that quick referal from a relative of that genuine source ,I would have regretted my total life,because at that point in time I just divorced the father of my son,and my son (Kenet) was faced with a ” between life and death ” situation ..I was faced with his hospital bills and was also faced with forclosure at my apartment.Details of the GOD SENT and RELEIVING source won’t be disclosed to you for now, for fear of impersonation ( because it has being discovered that some persons are not really in need of financial help,but are there to impersonate real loan lenders through their phone numbers and email accounts,and acting to be them where necessary to those in real need)…I couldn’t comment on your post because it was a public place and I fear you would fall into the hand of all these fraudulent loan officers (even in US) like how they ripped me off.You must be able to convince me real hard,and provide good proofs,before I can give you the full details of this legitimate loan officer..Their charge is very affordable and reliable compare to many out there,their interest rates just 3%,little documentation,and little credit check(irrespective of your credit score,but you MUST have a good and liable income source) Feel free to email him at his via Email: ” and you will be free from scams

  33. Phoenix Robyn said

    My names are Phoenix Robyn.I am a single parents.I needed an urgent loan for
    business and clearing of debts.I met a reverend who directed me to Mrs Katherine.
    KATHERINE CHRIS LOAN who granted me $30,000 USD without stress.Since then I have
    decided to publish their genuineness all over the internet for those who
    require loan to see and to avoid being scammed as there are a lot of
    scammer’s out there. I have been scammed before until I met Mrs Katherine my story changed,i know that this will be your loan solution that is why i am sending you this email,so below is the email to reach him.
    You can contact them on

    I bet you that you won’t regret it!

    Warm Regards.

    Robyn Phoenix.


  34. Mrs Bint chin said

    i am Mrs Bint chin from Ohio Singapore,when i was in need of loan two weeks ago my friend recommend Katherine loan firm to me i must inform you that i was really scared because of my past experiences with a scam but i decided to give them a try to my grates surprise my loan application was approved and transfer to my bank account in Singapore without any form of credit check,no cosigner,no collateral and with just 3% interest rate so i will advise anyone out there that need a loan to contact them via their email,

    tell them that i sent you to contact them cause they are the best

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: