A Guide to CPF Housing Grants

Buying a flat is a big financial commitment, so you might be glad to know that there are several housing grants available to help you offset the purchase price of the flat and embark on your home ownership journey.

Do you know which grants you’re eligible for, or how much you can get? Here’s a handy guide that breaks down all you need to know about housing grants.

1. Enhanced CPF Housing Grant (EHG)

Who is eligible for the EHG?

First-timer citizen households and first-timer single citizens can apply for the EHG when buying a new flat from HDB or resale flat on the open market, subject to prevailing eligibility conditions. Resale flat buyers must qualify for the Family Grant or Singles Grant (whichever is applicable) to be considered eligible for the EHG.

If you’re buying a flat as a first-timer family, your average gross monthly household income must not exceed $9,000. If you’re a first-timer single, your average gross monthly income must not exceed $4,500.

What are the flat types eligible for EHG?

Generally, the EHG is applicable to both new and resale flats, for all flat types and locations. However, for first-timer single citizens, the applicable flat type would depend on the eligibility scheme and whether you are buying a new flat or resale flat. Do note though that the flat needs to have a remaining lease of at least 20 years.

How much grant can I get with the EHG?

*The flat must have sufficient lease to cover the youngest buyer to the age of 95 –otherwise, the EHG will be pro-rated

Read here for more details on EHG.

2. Family Grant

Who is eligible for the Family Grant?

You may be eligible if you’re a first-timer household buying a resale flat on the open market, and your average gross monthly household income does not exceed $14,000.

What type of flat can I buy to be eligible for the Family Grant?

2-room or bigger resale flat with a remaining lease of at least 20 years.

How much grant can I get with the Family Grant?

** May later be eligible for the Citizen Top-Up – a $10,000 housing subsidy – when a qualifying household member becomes a Singapore Citizen

Any other grants I could be eligible for?

• Enhanced CPF Housing Grant
• Proximity Housing Grant

Read here for more details on the Family Grant.

3. Singles Grant

Who is eligible for the Singles Grant?

If you’re a first-timer single Singapore Citizen (35 years old and above) buying a resale flat with average monthly household income not exceeding $7,000, you may be eligible!

What type of flat can I buy to be eligible for the Singles Grant?

2-room to 5-room resale flat, with a remaining lease of at least 20 years.

How much grant can I get with the Singles Grant?

Any other grants I could be eligible for?

• Enhanced CPF Housing Grant for Singles
• Proximity Housing Grant

Read here for more details on the Singles Grant.

4. Proximity Housing Grant (PHG)

Who is eligible for the PHG?

This grant is for those who are buying a resale flat on the open market to live with or close to their parents and/ or married children.

What type of flat can I buy to be eligible for the PHG?

* The flat needs to have a remaining lease at least 20 years.

How much grant can I get with the PHG?

Any other grants I could be eligible for?

• Family Grant
• Singles Grant
• Enhanced CPF Housing Grant

Read here for more details on the PHG.

5. Step-Up CPF Housing Grant

Who is eligible for the Step-Up CPF Housing Grant? What type of flat can I buy to be eligible for the Step-Up CPF Housing Grant?

You may apply for this grant if you currently own a 2-room subsidised flat in a non-mature estate and are applying to upgrade to a subsidised 3-room flat in a non-mature estate.

Second-timer families who are rental tenants may also be eligible for the grant if they buy a 2- or 3-room flat in a non-mature estate.

How much grant can I get with the Step-Up CPF Housing Grant?

$15,000

6. Half Housing Grant

Who is eligible for the Half Housing Grant?

Couples comprising a first-timer citizen applicant and second-timer applicant, with an average gross monthly household income of less than $14,000, and buying a resale flat on the open market, may apply for the Half-Housing Grant.

What type of flat can I buy to be eligible for the Half Housing Grant?

2-room or bigger resale flats with a remaining lease of at least 20 years.

How much grant can I get with the Half Housing Grant?

The quantum of the Half Housing Grant is half that of the Family Grant.

Do remember that if you sell your flat that was purchased with the help of CPF grants, all CPF monies used will be returned to your CPF Account – so you can use it for your next housing purchase, or retirement and healthcare needs!

Source: mynicehome.gov.sg

A Guide to the Enhanced CPF Housing Grant (EHG)

To make housing more affordable and accessible to Singaporeans, eligible first-time flat buyers can apply for an Enhanced Housing Grant (EHG) of up to $80,000.

What is EHG?

The EHG is a CPF housing grant for first-time flat buyers applying for a new Build-To-Order (BTO) flat or buying a resale flat in the open market. It helps to make housing more affordable and accessible to Singaporeans.

How much EHG am I eligible for?

Eligible first-timer applicants for new flats can enjoy an EHG of up to $80,000, while eligible first-timer singles can enjoy an EHG (Singles) of up to $40,000.

Similarly, eligible first-timer households buying a resale flat can also enjoy an EHG of up to $80,000, in addition to the CPF Housing Grant (up to $50,000) and Proximity Housing Grant (up to $30,000). This means that first-time resale homebuyers can enjoy up to $160,000 in housing grants!

How does EHG work?

To qualify for EHG, the monthly household income for first-timer families should not exceed $9,000 (refer to Table 1 below). Eligible first-timer singles must be aged 35 and above, with a monthly income of less than $4,500. In both cases, the buyer or his/ her spouse must be in continuous employment for the 12 months prior to the date of flat application and remain working at the point of flat application.

Table 1: EHG Structure

*The EHG is applicable for those buying 2-room Flexi flats on 99-year leases in the non-mature estates, 2-room Flexi flats on short leases, and resale flats (up to 5-room under the Single Singapore Citizen Scheme, and all flat types under the Joint Single Scheme).

^The EHG amount is applicable to households buying a flat with a remaining lease that can cover the buyers and their spouses to the age of 95; otherwise, the household will enjoy a pro-rated EHG.

New Flat Applicants

For first-timer households*, the EHG is applicable for all flats, regardless of flat type and location.

*First-timer single citizens buying a flat under the Single Singapore Citizen scheme or Joint Singles Scheme, are only eligible to buy 2-room Flexi flats.

For example, Couple A has an average monthly household income of $4,800 and is looking to buy a 4-room BTO flat in Tampines, a mature estate. With the EHG, Couple A can enjoy an additional $45,000 in housing grants:

Example 1

Resale Flat Buyers

Eligible first-timer households buying a resale flats can enjoy up to $160,000 in housing grants, which includes the EHG (up to $80,000), CPF Housing Grant (up to $50,000) and PHG (up to $30,000).

For example, Couple B who are both Singapore Citizens with an average monthly household income of $4,800, is buying a 4-room flat in a mature estate to live near their parents. They can enjoy a CPF Housing Grant of $50,000, an EHG of $45,000 and Proximity Housing Grant (PHG) of $20,000.

Table 2: CPF Housing Grant

Table 3: Proximity Housing Grant

What happens if the remaining lease of the flat I buy does not cover the youngest owner till the age of 95?

To enjoy the full EHG amount for the relevant income brackets, the purchased flat must have sufficient lease to cover the buyers and their spouses to the age of 95. Otherwise, the amount of grant will be pro-rated. This condition also applies to repurchased flats under the Sales of Balance Flats or Re-Offer of Flats exercises.

For example, Couple C, both aged 30, with an average monthly household income of $4,800, has purchased a resale flat with a remaining lease of 60 years. As the flat cannot cover them to the age of 95, they can enjoy an EHG of $40,000 as opposed to the full EHG amount of $45,000 for their income bracket.

In a Nutshell

Eligible first-timer applicants for new flats can enjoy up to $80,000 in housing grants while eligible first-timer singles can enjoy an EHG (Singles) of up to $40,000.

For eligible first-timer households buying a resale flat, they can enjoy up to $160,000 in housing grants, which includes the EHG (up to $80,000), CPF Housing Grant (up to $50,000) and PHG (up to $30,000).

Whether you are applying for a new BTO flat or buying a resale flat, remember to factor in the EHG when planning for your new home!

Read this guide to learn about other CPF housing grants available for home buyers.

Source: mynicehome.gov.sg

Need HLE-P with Housing Loans?

Once you have a great partner by your side and a shiny ring on the finger, it is only natural that both of you would be looking to buy your very own home sweet home. If you wish to take a housing loan from HDB, be sure to apply for your HDB Loan Eligibility (HLE) letter before you seek out your new pad.

Why do I need an HLE Letter?

An HLE letter will tell you the amount of HDB housing loan you are eligible for, the repayment preiod, and other important financial details. This loan amount, coupled with CPF housing grants, as well as your CPF and cash savings, make up the budget for your flat.

Armed with this information, you can avoid falling in love with a flat that is beyond your means.

You will need a valid HLE letter when you book a new flat with HDB, or even when you exercise an Option to Purchase to buy a resale flat.

Okay… so how do I apply for an HLE Letter?

There are only 4 steps to apply for an HLE letter. You can do so online via HDB InfoWEB. Do prepare the required information and documents beforehand for a smoother application.

Not everyone is eligible for an HDB housing loan though, so it is best to check on your loan eligibility as early as possible. Having an HLE letter in hand will also help you plan your flat budget. There is no harm in planning ahead; after all, the HLE letter is valid for 6 months and there is no payment involved to apply for one.

What if I did not get a large enough loan?

Regular income, age, and financial standing are 3 main factors that HDB considers in loan assessment. If you are just starting out in your career, and the eligible HDB loan amount is insufficient to cover the price of the flat you have your eye on, look around some more. There will be a flat for every budget and need.

Spend within your means and do not overstretch yourself financially — a cheaper flat might mean more money for rainy days, renovations, furnishings, or even a vacation.

We also have other financial tools; to help with your planning. All the best in working out a housing budget, so you can make an informed decision when buying a flat!

Source: mynicehome.gov.sg

A Guide to Prime Location Public Housing (PLH)

HDB will be building new public housing in prime, central locations like the city centre and the Greater Southern Waterfront. These flats will be sold under a new housing model called the Prime Location Public Housing (PLH) model.

What is PLH?

The Prime Location Public Housing (PLH) model is a public housing model that aims to keep HDB flats in prime, central locations affordable, accessible, and inclusive for Singaporeans.

This model was developed after considering feedback from the public—more than 7,500 Singaporeans, including academics and industry experts, shared their views on the model over almost a year.

Which areas will this new public housing model apply to?

The PLH model will apply for selected public housing projects in prime and central locations like the city centre and surrounding areas, including the Greater Southern Waterfront. The PLH model will not be retrospectively applied to existing flats.

What are the HDB flat types available for PLH flats?

About 960 units of 3-room and 4-room flats will be offered for sale in the first project to be launched under the PLH model at Rochor.  The project will also include 40 units of 2-room rental flats.

Will there be additional subsidies for prime location flats?

New PLH flats are priced with additional subsidies, on top of the substantial subsidies already provided for BTO flats today. These additional subsidies keep PLH flat prices affordable for a wide range of Singaporeans.

When PLH flat owners sell their homes, they will pay to HDB a percentage of the resale price of the flat, commensurate with the extent of the additional subsidy provided. This is to be fair to other BTO flat owners who do not receive these additional subsidies. For the pilot projects, River Peaks I and II, this amount is fixed at six percent of the higher of the resale price or valuation.

All prevailing grants such as the Enhanced CPF Housing Grant (EHG) of up to $80,000, will continue to apply for eligible families who buy a PLH flat.

What are the eligibility conditions for the purchase of prime location flats?

To buy a new PLH flat, you must meet the prevailing BTO eligibility conditions such as being a Singaporean household and meeting the household income ceiling, currently set at $14,000.

Beyond the initial purchase, subsequent flat buyers of resale PLH flats will also have to meet the prevailing eligibility conditions for the purchase of BTO flats. This helps to ensure that PLH flats remain inclusive and accessible to a broad group of subsequent flat buyers over time. Without these conditions, the resale prices of these prime location flats may rise beyond the reach of many Singaporeans; and over time only the better-off will be able to afford to buy them.

A summary of key eligibility conditions for purchase of 3-room and larger flats are below:

Conditions	Flats bought from HDB and PLH resale flats *	Typical Resale Flats
Citizenship	At least one applicant is a Singapore Citizen (SC). Household must comprise at least one SC and one Singapore permanent resident (SPR).	At least one applicant is a SC or SPR. Household can comprise only SPRs.
Family Nucleus	Must have an eligible family nucleus, e.g. married couple.	Must have an eligible family nucleus; or if single, must be aged 35 and above.
Income Ceiling	$14,000^	Not applicable
Private Property Ownership	Must not own or have an interest in a private property and have not disposed of any in the last 30 months.	Allowed, but must dispose of private property within 6 months of buying the resale flat.

Note:
* With or without CPF housing grants.
^ Or $21,000 if purchasing with extended/multi-generation family.

Will there be flats set aside for priority allocation under the Married Child Priority Scheme?

Yes, flats will continue to be set aside for those applying under the Married Child Priority Scheme (MCPS). The priority quotas will be adjusted for individual PLH projects, to provide opportunities for Singaporeans whose family members do not live nearby, to also live in prime areas. 

How long will I need to live in the PLH flat before I can sell it? Will I be able rent out spare bedrooms or the whole flat?

Given the prime locations and additional subsidies provided for PLH flats, PLH flat owners will need to live in their flats for at least 10 years before they can sell them on the open market or invest in a private residential property. This measure helps to safeguard PLH flats for families with genuine housing needs and discourage speculation.

While owners of PLH flats may rent out spare bedrooms, renting out of whole flats is not allowed, even after MOP.

Conditions	BTO Model	PLH Model
Resale of flat	Allowed after MOP*	Allowed after MOP^
Renting out of spare rooms	Allowed	Allowed
Renting out of whole flat	Allowed after MOP*	Not allowed
Investment in private property	Allowed after MOP*	Allowed after MOP^

Note:
* MOP is five years.
^ MOP is ten years.

Working Out the Math for Your Second HDB Flat

Buying a flat is a huge financial commitment (you already know that!) and getting a second flat is no easier. There are many things to consider, so read on to make sure you have everything covered before putting your money down for your second home.

Computing your estimated sale proceeds

Do you know how much proceeds you might receive from the sale of your existing flat? As the cash proceeds will form part of your budget for your next flat, having a realistic estimate is crucial to helping you calculate the amount you can afford to spend. Simple math!

With information such as your outstanding mortgage loan, CPF funds used including interest, resale levy (if applicable), and some of the other payments due, you can use HDB’s Sale Proceeds Calculator to get a ballpark estimate of the cash proceeds from the sale of your flat!

Resale levy

You do not have to worry about the resale levy, if you plan on getting a resale flat on the open market next.

The resale levy applies to those who plan to buy a new flat from HDB, but have previously received some form of subsidy for their first flat – be it through the purchase of a flat from HDB, or a resale flat with the CPF housing grants.

As new HDB flats are sold at a subsidised price, the resale levy is put in place to ensure that there is a fair allocation of public housing subsidies between first-timers and second-timers.

Grants available

Second-timer home buyers can also be eligible for housing grants! If you are buying a resale flat that is within 4 km of where your parents/ child currently stay, you may be eligible to apply for the Proximity Housing Grant, which aims to help more families live close to each other for mutual care and support.

Use HDB’s Distance Enquiry for Proximity Housing Grant e-Service to check if the resale flat you intend to buy falls within the proximity range to qualify for the grant.

Taking up a second HDB loan

If you are intending to take a second HDB loan, do note that your loan amount will factor in your CPF and cash proceeds from the sale of your flat. This is to ensure that you do not over-borrow!

The commercial interest rate will be applied to your HDB housing loan if you plan to sell your current flat only after buying your next flat. The interest rate will be converted to the concessionary rate only after you have sold your current flat, and used the proceeds to repay your housing loan.

Contra Facility

Want to sell your existing HDB flat and buy another flat at the same time? Consider applying for the Contra Facility, which allows you to use the cash and CPF proceeds from the sale of your existing flat to purchase your next flat, concurrently.

The Contra Facility can help you reduce the cash outlay needed for your next flat, the mortgage loan amount needed and the subsequent monthly repayments. If you are buying a new flat, you can collect the keys to your new flat and renovate it, while selling your existing flat!

We hope this article has made financial planning for your second HDB flat less daunting. Follow us on Facebook for more useful information on buying a HDB flat and HDB living.

Source: mynicehome.gov.sg

Mature Versus Non-Mature HDB Estates

If you are eyeing a new HDB flat, you would have thought about where your future home will be. For those still mulling it over, we break down the key differences between mature and non-mature estates.

Flat Prices

New flats are sold at subsidised prices, regardless of location. However, flat prices may vary based on factors like flat attributes, surrounding amenities and locations. In general, prices of flats in non-mature estates tend to be lower than those located in mature ones.

Regardless where you are aiming to set up your new home, you can receive the Enhanced CPF Housing Grant of up to $80,000 when you buy a flat.

Amenities

Home is so much more than just the four walls of your flat – amenities matter, too. Mature estates, as their name implies, are older as they were established much earlier than their non-mature counterparts. As such, residents enjoy various amenities that have been developed over the years. These include transport networks, shopping malls, schools, and parks.

But non-mature estates are far from under-developed! While not all amenities may be ready the minute you move in, give it some time and you’ll soon enjoy new facilities that might end up being the envy of others. Just look at Punggol or example! Singapore’s first eco-town now bustling with life, full of amenities comparable to mature estates. There are shops and communal spaces aplenty at Oasis Terraces, HDB’s first New Generation Neighbourhood Centre. Punggol Waterway, which meanders through the town, is also home to water-based recreation activities and other community activities.

Residents in newer estates also get to enjoy a living environment enhanced by the latest state-of-the-art urban solutions. Projects in Punggol are fitted with innovative eco-features such as centralised recycling refuse chutes to promote recycling; rainwater harvesting system to encourage water conservation, and LED with motion sensors.

TLDR: It Depends on Your Needs and Priorities

Of course, as with most decisions, there are pros and cons.

Flats in non-mature estates are great, budget-friendly options. While amenities in these estates might still be work-in-progress when you move in, you will soon be able to enjoy a wide range of new facilities near your home.

Mature estates have their own charm, with many established amenities around. However, competition for new flats in mature estates can be stiff, with a much smaller pool of flats available as compared to non-mature estates.

If mature estate is still your cup of tea, you can consider resale flats, too. You may be eligible for grants of up to $160,000 if you buy a resale flat.

All in all, whether a mature or non-mature estate is the best for you depends largely on your priorities. Still confused or need more advice on flat buying? Be sure to check out more of our articles!

Source: mynicehome.gov.sg

The Case for Buying the Most Affordable Home You Can

My co-founder bought a 3-room resale flat in a mature estate last year for a tidy $430,000 in Marine Parade (before the various CPF Housing Grants).

Personally, I think this is a pretty smart decision, given his income and lifestyle. A 3-room flat (or 4 room) flat also makes more sense compared to a 5-room flat, because:

• Less rooms to clean
• Less money spent on renovation
• Lesser need for so many rooms anyway, if you’re not intending to have kids

That said, conventional home owner wisdom is to buy the biggest or the most expensive HDB flat based on your budget. I know couples who don’t earn that much but are considering going all out for HDB flats in locations like Boon Keng, where the resale prices could be as high as $900,000.

Yikes.

Today I’d like to present another argument: why you should buy the most affordable flat you can.

Now, I’m going to qualify some stuff upfront.

What we mean specifically is to ‘buy the most affordable flat that meets your needs, not ‘buy the absolutely cheapest flat.’

There is a difference.

Avoid the ‘asset rich, cash poor’ trap that many people fall into

To many traditional Singaporeans, this is the idea of being rich: Own lots of expensive things and live in a big house. This mindset is a key ingredient for a lifetime of debt.

But consider this other definition of being rich: Having enough money and freedom for many experiences – cycling around the world, starting a business, supporting causes you’re passionate about, spending more time with your ageing parents and young children.

We think, in the 21st century, the real marker of wealth is time, mobility and options.

All three cannot be achieved if you’re bogged-down paying for an expensive flat way beyond your means.  BUT, they can be achieved if you work on your investments. Which brings us to our next point.

Buying a home beyond your means will limit your investment potential 

Okay let’s get one thing clear.

There are generally two types of residential property in this world – property you live in, and property you invest in.

• The first one is where you just live in and don’t make money from. This is your *home*. Even when you sell your home to get cash, chances are you’ll use this cash to buy another home.
• The second is one you try to make money from. This is called an investment.
• Sometimes, these two categories overlap. HDB flats, which are meant to be affordable public housing for homeownership, typically fall in  the first category (more on this later). 

Sometimes, these two categories overlap. HDB flats, which are meant to be affordable public housing for homeownership, typically fall in  the first category (more on this later). 

The more money spent on your home, the less money you have for investments (investment property, stocks, bonds, etc). Now, this sounds ridiculously simple, but many will find this hard to understand.

Simplified even further, it looks like this:

• You want to retire earlier: spend below your means on your home, spend more on investments.
• You want to retire at 62 like everyone else: spend within your means on your home, invest as per normal.
• You want to have insufficient retirement funds: spend beyond your means on a home, don’t invest.

Here’s some boring math to drive the point home (pun intended). STAY WITH ME.

Let’s assume you buy an HDB flat and stretch payments across 30 years, at an interest rate of 1.7% p.a. These are what your mortgage payments will look like.

Property price	Monthly repayment, assuming 1.7% p.a over 30 years
$400,000	$1,419
$600,000	$2,129
$800,000	$2,838

If you had picked the $400,000 flat over the $600,000 one, you would have $710 more each month for your savings or investment.

This doesn’t seem like much, but let’s look at the opportunity cost of investing the $710 over 30 years.

Place	Interest rate	Opportunity cost of having $710 invested over 30 years
Under your mattress/ In a biscuit tin (TWS does not recommend this investment vehicle)	0%	$255,600
CPF SA	4%	$486,542
Stock Market (conservative)	5%	$578,916.
Stock market  (optimistic)	7%	$830,311

Now, I want to be very clear. We’re not saying that buying a $600,000 or $800,000 flat is a financial disaster.

If your combined household income is like $20,000, go ahead. You can buy pretty much any HDB flat you want and have enough left over to work towards your financial freedom.

But if you and your spouse are the median Singaporean couple earning about the median household income of $9,425, you need to be more cautious. 

Which brings us to this.

What’s ‘too much’ to spend on a flat? 

To avoid spending too much on a flat, you must know what is too much. Here are two methods you might find useful to judge whether your flat is too ex.

The first is the 3-3-5 rule, popularised by property blogger Property Soul and often criticised for being too conservative.

Following the ‘3-3-5’ means you meet all of the following criteria:

• You should have 30% of your capital ready before you purchase your property
• Your monthly repayments should not be more than ⅓ of your monthly income
• And the property price should not exceed your annual income by 5x

Our suggestion is to use the last rule and then work backwards. It looks like this:

Your household income	The max price of a flat you should buy	Save this amount before buying	Your max monthly payments
$9,425 (median income in 2019)	$565,600	$169,650	$3,141
$14,000 (income ceiling for BTO)	$840,000	$252,000	$4,666
$16,000 (income ceiling for EC)	$960,000	$288,000	$5,333

Criticism for 3-3-5

Now, a lot of people find this rule very limiting. “iF i foLlOw ThiS I cAnNoT afFoRd anYthIng,” they say. 

My opinion is that the rule is a good rule of thumb, and perhaps their tastes in properties are too exquisite or aspirational.

That said, different strokes for different folks. We’re a page focused on savvy financial decisions, not living in luxury or impressing people. So, use your own judgement.

The second rule we’ve created is a simple one called “follow the crowd”

It follows the same logic you used in secondary school to find out whether you’re keeping up with the syllabus.

If you’re the only one failing a test, you should be worried. But if everybody failed a paper, you’d be relatively safe.

(We’ve lumped all 3, 4, and 5 room flats in the same category because it’s very possible for small families to overextend themselves to buy a 5-room flat when a 3-room would have sufficed.)

Which brings us to this magical number: The average price of all  3-, 4- and 5- room resale flats in 2020 is $430,000 (rounded down from $433,363). Typically BTO flats are cheaper, because they’re subsidised by HDB.

$430,000 isn’t a number we pulled out from nowhere, I’ve used paid software from 99.co (where I work) to generate this chart – it gets data from URA, REALIS and of course, 99.co.

At the same time, the median household income is $9,425. 

If you spent more than $430,000 on your flat, but are earning below the median income, then you should be clear that you’re spending beyond the norm.

Same if you’re earning the median income but spent significantly more than $430,000.

Like the 3-3-5 rule, this isn’t something you need to follow religiously, but more of something to build self-awareness.

You’re not doomed if you ‘overspent’. But you need to recognise that you’ve spent beyond the average amount – and then work to make up for it somewhere.

If you find all these rules restrictive, you can check out HDB’s financial planning tools to help you draw your own conclusions instead. They also have their own useful guidelines to help you make your decision.

Of course, buying a flat is not all about money 

You know what? We get it. We actually do. Money isn’t everything. Buying and owning a flat is a rite of passage, and it’s often an emotional decision. A home has feelings attached to it – feelings of belonging, love, and hope.

What’s right for you?

We are not you, so we honestly don’t know.

What can be said is this: According to the Pareto principle, 80% of life’s outcomes are caused by the 20% of inputs. To simplify, 20% of your choices in life will affect 80% of your life.

Your first flat that you buy in the prime of your youth?

It’s definitely in that 20%.

Stay woke, Salaryman.

Source: mynicehome.gov.sg

A Guide to Buying a Resale HDB Flat

Are you looking to buy a resale HDB flat but unsure of how the entire journey is like? Here’s a 5-step guide on how you can purchase a resale flat from the open market.

1. Check Your Eligibility

Before you start the process, first check if you are eligible to purchase a resale flat. Register your Intent to Buy through the HDB Resale Portal to receive an instant assessment on your eligibility to buy a resale flat. The Portal will also automatically retrieve and populate your particulars from the Government’s MyInfo service.

Learn more about the Resale Portal here.

2. Plan Your Finances

Before you dive into searching for a resale flat, set aside time to do your math. Use our Budget Calculator and Payment Plan Calculator to get estimates of resale-related costs and fees, the estimated housing loan amount, and CPF housing grants applicable to resale flat buyers.

3. Search for an HDB Flat

Now that you’ve done the necessary checks and financial planning, it’s time to look for an HDB flat that meets your budget and needs. You can engage a property agent to assist you in the search, or trawl property sites to shortlist suitable ones.

4. Obtain an OTP from the Seller

Once you have decided on the resale flat that you would like to purchase, you need to obtain an Option to Purchase (OTP) from the seller via the HDB Resale Portal. After the seller grants you an OTP, a Request for Valuation will be submitted to HDB. Following the valuation report, you (flat buyers) will have to decide whether to exercise the OTP.

5. Submit Resale Application

Should you decide to exercise the OTP, both you and the seller must submit the respective portions of the resale application on the HDB Resale Portal. HDB will then contact both parties to come down to HDB Hub to attend a resale completion appointment, to endorse documents which require ‘wet-ink’ signatures.

There you have it – you are 5 steps closer to getting a resale flat of your own!

Source: mynicehome.gov.sg

A Guide to Buying an HDB BTO Flat

Thinking of applying for a BTO flat but don’t know where to start? Here is a step-by-step guide on the process, where we highlight the things you should note and share tips for each stage of the application process.

Content

Step 1: Sales launch Step 2: Check eligibility Step 3: Submit application Step 4: Receive outcome of application Step 5: Book flat Step 6: Sign Agreement for Lease Step 7: Collect keys to flat

Step 1: Sales launch

BTO flats are available for application quarterly. HDB will announce the exact application period on the day of the sales launch. So, be sure to follow MyNiceHome, to get first-hand details of the projects on offer!

You can also check out the HDB Flat Portal and HDB social media channels (HDB Facebook, MyNiceHome Facebook, Instagram & Telegram). In a typical sales launch, several projects will be launched and applicants will have one week to submit their application.

During a sales launch, you will see a banner (like the one pictured below) on the HDB Flat Portal. Click on it and it will lead you to a listing page with prices and information on the projects on offer. Be sure to go through the details and discuss the options with your spouse or co-applicant!

Pro tip: Plan your flat purchase by checking out the HDB Flat portal in advance. The portal lists BTO projects about 3 months ahead of the projects’ scheduled launch and you can find useful information such as the site map, flat types and number of units offered for each project.

Step 2: Check eligibility

Found a flat that you like? Check your eligibility before making an application. You can read the eligibility conditions below and visit HDB InfoWEB for more details.

Overview of eligibility conditions

Eligible Applicant/ Family Nucleus	• You will need to qualify for a new flat under one of our eligibility schemes: Public Scheme Fiancé/ Fiancée Scheme Orphans Scheme
Citizenship	• At least 1 Singapore Citizen applicant • At least 1 other Singapore Citizen or Singapore Permanent Resident
Age	• At least 21 years old
Incoming Ceiling	• You are within the set income ceiling for the flat you intend to buy
Property Ownership	• All applicants and occupiers listed in the flat application do not own other property overseas or locally, and have not disposed of any within the last 30 months • All applicants and occupiers listed in the flat application cannot invest in private residential property from the date of flat application till after the 5-year Minimum Occupation Period (MOP) • You have not bought a new HDB/ DBSS flat or EC, or received a CPF Housing Grant before; or, have only bought 1 of those properties/ received 1 CPF Housing Grant thus far

You should also ensure that you have sufficient funds to purchase the flat. Previously, this might involve visiting several websites and webpages, but HDB has made it easier by streamlining the information-gathering process on the new HDB Flat Portal. You can now work out the sums easily with the calculators on the Portal.

Step 3: Submit application

When submitting an online application, applicants will have to pay a non-refundable application fee of $10 via MasterCard/VISA. You have one week to submit your application, but there’s no need to rush as applications are not processed on a first-come-first-serve basis.

At the close of the application period, HDB will process the BTO applications using a computer ballot. This will determine your queue position to book a flat.

Pro tip: You can improve your chances by applying under one of HDB’s Priority Schemes. Also, read this guide on using the HDB Flat Portal to submit your BTO flat application.

Step 4: Receive application outcome

HDB will notify you via SMS, and/or email, on the outcome of your ballot in approximately 3 weeks after the close of application.

Pro tip: You can also visit HDB InfoWEB or log on to My HDBPage to check your application status.

Step 5: Book flat

If your application is successful, you will be invited to book a flat from 4 weeks after the release of the ballot results. Before you head down to HDB Hub at Toa Payoh for your appointment, be sure to have the required documents ready.

During the selection appointment, you will need to pay an option fee – this will form part of your downpayment for the flat purchase. The amount payable varies depending on the flat type. Payment has to be made via NETS.

Flat Type	Option Fee
4/5 room Executive	$2,000
3-room	$1,000
2-room Flexi	$500

If you are applying for the Enhanced CPF Housing Grant, you will need to submit the application form during the appointment.

Pro tip: With the new HDB Flat Portal, you can create a watchlist of your preferred units and receive notifications if and when they have been booked by others.

Step 6: Sign Agreement for Lease

From 6 months after booking your flat, HDB will invite you to sign the Agreement for Lease. Ensure that you have the necessary documents with you.

This includes a valid Home Loan Eligibility Letter (HLE) from HDB if you are taking an HDB housing loan, or a Letter of Offer if you are taking a housing loan from a financial institution (FI).

You would also need to make a downpayment for your flat. The amount depends on the type of loan you are taking. For HDB Loan, it is 10% of the purchase price and it can be fully paid for using the CPF funds in your CPF ordinary account.

For a loan from an FI, it is 20% of the purchase price, of which at least 5% must be paid using cash and the remaining can be paid using your CPF savings.

As the maximum loan quantum granted by financial institutions is 75% of the purchase price, you will have to pay the balance 5% of the purchase price using cash or CPF savings when you collect the keys to your flat. The actual cash quantum would depend on the maximum loan ceiling.

For payment using CPF savings, you would need to access your Singpass and your mobile phone or OneKey token for 2-factor authentication. The registration for Singpass and activation of 2FA will take up to 10 working days. So be sure to prepare these in advance!

Pro tip: There are several factors to consider when deciding between an HDB housing loan or a loan from an FI. Check out this article to compare the differences between the two financing options.

Step 7: Collect keys to flat

When construction of your flat is completed, HDB will notify you to make a trip to its office to collect the keys to your flat. The key collection process is straightforward and you will be guided by experienced HDB officers. Have the necessary documents with you, collect your keys and congratulations on becoming a home owner!

Pro tip: Planning for your home renovation is a creative process which takes time! Start early with this Guide to Planning Your HDB Home Renovation.