Home loan application – income for employed and self employed

Question from client:

Will the application be hindered if there is a gap of 1 year where no CPF monies is being deposited due to self-employment?

Our reply:

Private property application –

For self employed, you need to have latest 2 years Notice of Assessments (NOA) to get 80% financing.
If you only have 1 year NOA, the loan approved is usually base on Asset backed lending. (ABL is not applicable to HDB property)
Take note that the approval is still base on a case to case basis.

You may consider of bringing in a co-borrower to support you loan if you need 80% financing.

Income documents needed for co-borrower:

Self-Employed – Latest 2 year Notice of Assessment
Salaried – Computerised pay slips (latest 3 months) or Latest 1 year Notice of Assessment