NEW rules that require HDB flat buyers to prove they can afford a property before committing to a purchase will kick in from Jan 1.
The changes, announced by the Housing Board in October, require buyers seeking HDB home loans to provide a letter from the board indicating the maximum amount they can borrow, their repayment period and monthly instalments payable, before they commit to buying the flat.
The letter is valid for three months from the date of issue.
Those using a bank loan to buy an HDB flat will need a letter from a bank indicating a loan offer, while buyers paying with cash and/or their Central Provident Fund savings will need to show documents to prove they have sufficient funds.
The changes are aimed at helping home- buyers better understand their financial situations before they make their purchases.
