CAN YOU AFFORD IT?

Lately, I've been seeing videos promoting pre-selling properties because of the attractive discounts and flexible payment terms. The usual pitch is simple: pay the down payment over several years, then just finance the balance through a bank.

But here's the question nobody asks: can you actually qualify for the bank loan when turnover comes?

As a general rule, banks prefer that your total monthly debt obligations—including your housing loan—do not exceed about 40% of your gross monthly household income at the time the property is turned over and the loan is released.

That means affordability isn't determined by the monthly down payment. It's determined by the loan amortization you'll have to pay years later.

Based on that guideline, here's the approximate household income needed to finance 80% of a property's purchase price.