Young, Thrifty and Debt-Free: This Couple Paid Off Their 470k Bishan Flat In 2 Years

You probably already know this, but property is expensive in Singapore. Homes can cost anywhere from hundreds of thousands for HDB flats to millions of dollars for private condos and landed homes. So for many of us, buying a home is our biggest single expense and our home loan (or mortgage) repayments the biggest liability in our lives.

Let’s not talk about the Crazy Rich Asians. Say you’re an Average Joe: Even if you buy a modest under-500k HDB flat - assuming you take 75% to 90% in home loans to finance it - you’re looking at mortgage repayments of at least $1,200 each month (depending on the interest rate and tenure). Considering the median salary of Singaporeans is $4,563 (Ministry of Manpower, 2019), that’s about a quarter of our monthly income!

Most of us take decades to pay off this debt, but not Clara Lim, 34, and her husband, Jon Phay, 37. Yes, it’s not uncommon to hear of couples who pay off their homes by their mid-thirties, but what’s interesting is that unlike couples who marry early in their twenties and live frugally for the next 10 years, Clara and Jon actually only tied the knot and bought their Bishan HDB flat two years ago.

So how did the couple manage this feat at such a young age? After all, Clara and Jon both hold pretty average-earning jobs as a writer and engineer respectively.

Well, first of all, Clara and Jon most definitely didn’t save hundreds of thousands in two years. The saving up took place before they bought the property.

In fact, with their savings combined, they actually had just about enough to pay for their $468,000 resale flat in full at the point of purchase. They only took up a home loan because Jon wanted to utilise his CPF funds while he continued working.

Clara’s savings: $120,000

Jon’s savings: $80,000

Combined CPF OA: $191,000

CPF housing grants: $70,000

Given this, you’d expect that the couple must have spent their entire twenties staying home and eating cup noodles, but that was not the case.

“Frankly, I don’t think Jon put that much effort into saving up that $80,000. He just doesn’t have expensive hobbies,” says Clara. For her, however, it was a different story: “For most of my twenties, I spent all my money on going out with friends, drinking, shopping, etc. But when I was 29 years old, a bad breakup caused me to go on a big lifestyle detox.”

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It's amazing how canny people could be like the couple you've described above. Surprisingly, they paid it off in only two years, and now they're debt-free. I realized that mortgage loans aren't for everyone. Reckless people shouldn't apply for mortgages if they can't even deal with ordinary errands and tasks. My brother has worked for Mortgage Advice Leicester for the last five years, and he often told me about destroyed families because of the inability to pay the interests. It's sad, especially because consulting companies are not doing their job, and people remain unaware and unprotected. I wish there were more transparency in this field.


After reading this article, many people probably thought that mortgages could be less of a burden for them. But the moral of the story is that not everyone can take out a mortgage (even with a high credit rating). My wife and I, just like Clara and John, purchased a property on credit. We were lucky enough to find a great Mortgage Broker Woking who helped us find the best terms. I suggest you also contact a broker to help you find the best loan option. I'm sure Clara and John didn't decide to do this right away. I think they had been hatching a plan for quite some time.