Wednesday, August 28, 2019

HDB BTO Key Collection

Before Key Collection Date

1) Apply for Electricity, Water and Gas (Optional) account from SP Group
- It took me less than 5 mins to apply for SP Group account if you used MyInfo. It is very convenience as you no longer required to provide a copy of NRIC if you use this.
- SP Group will ask you to select the Date and Time when you would like to activate it.
- No payment is required at the point of account opening
- I selected my activation date on my key collection date as I intend to make a trip down to my new home to check for defect on that day itself.
- You do not need to be present when SP Group activate your Electricity and Water services.
- It is highly recommended to switch out to another electricity provider the moment your SP Group electricity account is activated. The saving is as high as 30% off your electricity bill (Link).

2) Apply for Fire insurance
- From 16 Aug 2019 onward, FWD is the newly HDB appointed insurer.
- It is compulsory to purchase from FWD if you are taking HDB loans.

3) Have a thoughts regard to your HDB loans (IMPORTANT)
Buying a HDB flat should be the biggest amount you ever paid for. Thus, it is important to do some financial calculation for such a super huge purchase and do not leave it to decide last minute over the HDB counter during your key collection date.

(A) Your HDB purchase price: $___________
(B) Balance (After deduct Grant + initial downpayment): $___________
(C) Husband total available OA amount: $___________
(D) Husband OA amount to be kept in CPF OA: $___________
(E) Husband OA amount to be used for downpayment : $___________
(F) Wife total available OA amount: $___________
(G) Wife OA amount to be kept in CPF OA: $___________
(H) Wife OA amount to be used for downpayment: $___________

___(B)___ - ___(E)___ -  ___(H)___ = ___(I)___

(I) The total loan amount you will need to take: $___________
Do check that this amount is lower than your HLE approved amount.
Else, you will need to use cash for your downpayment.

Go to HDB Loan Calulator and enter the amount (I) in "Loan Amount (S$)"
Enter the number of years you would like to repay this loan.
Enter the Interest rate (HDB is 2.6%).
Click on "Accept" button

The estimated monthly instalment^ for your loan is $XXX
(J) The $XXX amount both of you need to repay in total monthly
(K) The monthly amount that was credited in Husband OA account: $___________
(L) The monthly amount that was credited in Wife OA account: $___________

Is (K) + (L) greater than (J)?
If yes, there is no cash topup per month needed to repay your loan amount
If no, there is cash topup per month needed to repay your loan amount

You might need to repeat this section a few times until both of you are happy and comfortable with the numbers.

Since Sep 2018, we are allow to leave up to $20k each in our OA account.
I will recommend to leave 8 months worth of your monthly loan amount.
Why 8 months?
Not because 8 is the lucky number for Chinese, but rather a "wake up call" in this suitation.
In the worst case scenario you are out of job (either planned or unplanned) and you are the picky employee (Eg: Wont accept a job that paid lower than your previous job), 6 months without landing a job  should give you red alert to reflect on yourself what could had went wrong and if you need to change your mindset. Thus, giving you a buffer of another 2 months to re-act or re-adjust your job seeking mindset or else, you need to start finding ways to fund your loan via cash.

4) Read up on Homeowner Guide by Building and Construction Authority (BCA).
- This guide will teach you what is deem as defect when you perform your defect check.

On Key Collection Date

5) Things to bring to HDB Hub for key collection
- Know your Singpass credentials (If you are making payment using your CPF OA)
- ROM cert (If there is a change in your marital status)
- NETS/CASH (To pay for Town Council fee)
- Fire insurance cert

The whole process took me around 60mins. Lots and lots of signing to be done over the counter.

Head down to your new home 
You will be given 7 days from Key Collection date to submit your defect list to the Building Service Centre (BSC).

6) Things to bring:
- Screwdrive (+) (For turning on your water supply and checking your tiles)
- Water
- Wet tissue
- Masking tape
- Marker
- Pen
- Torchlight
- Phone charger and cable

- Remember to OPEN your letter box first to retrieve your Water Supply instructions before you head up to open door.
- Turn on the Water Supply by following the instruction you just retrieve in your letter box
- Turn on the electricity by flipping up the 2 flip
- Open your gate and main door
- Perform all your FengShui related procedure
- Activate your electricity main circuit board
- Open all windows to let fresh air come in
- Start your defect check

7) Go to Police station and update your new address

Related post:
1) Home renovation regrets that costs you thousands of dollars

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