Endowment Insurance, Insurance

Get financially ready for your BTO!

August 2020 is going to be an exciting month for many young couples. Due to Covid’19, the Built To Order (BTO) HDB flat launch for May 2020 was postponed and scheduled to combine with the August launch. Thus, we will see one of the biggest BTO launches, with a total of 8 different locations to choose from.

Here an overview of the BTO launch in August 2020:

*Based on SRX HDB pricing Forecast – Actual figures might differ.

How do I pay for it?

Many of us would not be able to afford $100,000 to $200,000 upfront! Thus, a loan is needed. You can choose between the options of an HDB Concessionary Loan or a Private Bank Loan. 

It is required for you to prove that you are able to finance the flat before you can sign the lease agreement. This will require either an Approval in Principle (Bank Loan) or HDB Loan Eligibility Letter (For HDB Concessionary Loan). 

So is that sufficient?

Unfortunately, that would not be enough. 

Purchasing a new flat also goes beyond simply paying for the flat. There are other costs that you have to factor in, some of them you have to pay in cash upfront starting from Key Collection. 

Below is a table indicating other costs that you should take into account:

* Calculations based on 3-room flat type

How can I afford it?

Well, as with all big-ticket items, it is essential to start planning early. As the money is earmarked for your BTO expenses, it is not advisable that you engage in high-risk investment.

Low-risk saving plans are recommended as they will give you a higher rate of returns than saving accounts. Some also come with the flexibility of withdrawing should you require the cash in emergency cases. 

Introducing ELASTIQ

ELASTIQ is an insurance savings plan that provides you with guaranteed 1.80% p.a. crediting rate for the first 3 years. Unlike other endowment plans in the market which have a lock-in period of 3 – 25 years, it also provides you with the flexibility to withdraw your money anytime after the 90 days period. 

In addition, you will be credited with a non-guaranteed bonus of 0.3%  should there be no withdrawal within the 3 years. 

How does ELASTIQ work?

Going back to the example of the 3-Room HDB flat (Based on the Table illustrated above), you will require approximately $35,000 for the initial cash outlay after collecting your keys. 

$35,000 is no small figure! However, with Elastiq, you can reduce your outlay to $32,000 with some planning in advance! The table below shows how you can reach $35,000 by planning 5 years in advance with the Elastiq Plan.

Note: You have the flexibility to withdraw anytime after the first 3 months.


National Day’s Promotion:

From 4-16 Aug 2020, receive up to $30 cashback and $55 CapitaVouchers when you apply! T&Cs apply.

The policy is available on the PolicyPal app and website. Submit your interest here.




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