Couple's Financial Woes

This couple made a booking for a 5Rm HDB DBSS flat at City View @Boon Keng, which cost $675k. Now, they found themselves having difficulties in securing a home loan.

The couple's total income is abt $6k and they paid an option fee of abt $33k for the flat. They applied for HDB loan but was rejected, and private banks were only willing to loan up to $400k.

HDB claimed that Mr Tan's director's fee could not be used for credit assessment, and his fiancee did not have >=3mths continuous employment from the same company. Thus the loan was not approved.

Should Mr Tan give up this flat, he will have to pay a penalty of $8k (25% of option fee) to the developer, as full refund is only applicable to applicants who do not meet HDB's eligibility requirements, not for other reasons like loan issue.

* AsiaOne-Couple , AsiaOne-HDB *