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Buying your first HDB can be a daunting task. As a couple, you wonder where you should start and how to do so? Then the next question would be what type of flat could you afford? What sums are you looking at?

There will be a myriad of questions and I Love Children hopes these questions and answers will kick start your search for your new flat and finally a place you can call HOME!

 

Is a resale HDB flat or new Executive Condominium (EC) unit recommended for a first-time home buyer?

Home ownership is a long term financial commitment. When considering the various housing options, flat buyers may wish to take into account their long term financial ability to sustain the monthly mortgage payments and the various living expenses. The potential lifecycle changes that could affect future repayment ability should also be considered before making a decision.

 

For those who bought an Executive Condominium (EC) unit, are they able to rent a flat from HDB while waiting for the completion of their EC unit?

HDB has a Parenthood Provisional Housing Scheme (PPHS) which provides rental flats at below market rates to buyers who have booked an uncompleted flat under the Build-To-Order or Sale of Balance Flats exercise. For more information, please click here. EC buyers are not eligible for the PPHS.

 

What loans are available for Singaporean/Foreigner couples when buying a HDB?

To finance an HDB flat purchase, flat buyers may apply for a housing loan from the HDB if they meet the eligibility conditions. For more information on the eligibility for an HDB housing loan, please click here.

Alternatively, they may approach financial institutions regulated by the Monetary Authority of Singapore (MAS) for a home loan package.

Flat buyers are advised to check their eligibility and the amount of loan they can borrow before committing to a flat purchase.

 

If we have a combined income of $10,000, will getting a $700,000 HDB flat be overstretching?

Home ownership is a long term financial commitment. When considering the various housing options, flat buyers may wish to take into account their long term financial ability to sustain the monthly mortgage payments and the various living expenses. The potential lifecycle changes that could affect future repayment ability should also be considered before making a decision.

 

In HDB BTO system, do married couples have higher priority than courting couples under the Fiancé/ Fiancée (FS) Scheme?

There are priority schemes for married couples with children and these are not available to courting couples, viz. Parenthood Priority Scheme, Multi-Generation Priority Scheme and Third Child Priority Scheme.

On the other hand, there are schemes which accord married couple and courting couples the same priority, viz. first-timer family status (vis-à-vis second-timer family status) and Married Child Priority Scheme.

For more information, click here.

 

Is it better to get an HDB housing loan or a bank loan?

The mortgage loan packages offered by HDB and the various financial institutions regulated by the Monetary Authority of Singapore may vary due to different objectives. Hence, flat buyers are advised to check their loan eligibility with the different sources to see what best suits their needs and budget. They are urged to plan prudently and work out their budget before committing to a flat purchase.


Is it advisable to pay off HDB loan by cash on top of my monthly CPF contributions?

Regardless of whether the monthly mortgage instalments of a housing loan can be paid by CPF fully or will require a cash top-up, flat buyers are advised to consider their long term financial ability to sustain the mortgage instalments and the various living expenses. The potential lifecycle changes that could affect future repayment ability should also be considered before making a decision.

Taking up a smaller housing loan will facilitate early redemption and reduce interest cost. It will also reduce the risk that a flat owner is unable to keep up with the mortgage instalment payments due to various possible reasons.

 

Does choosing a BTO flat near parents/in laws increase chances of getting a BTO flat, including one in the mature estates?

There are various schemes which the HDB has put in place to facilitate mutual care and support between married children and their parents. For more information, click here.

 

What is the maximum years of HDB housing loan can a 38 year old take?

The maximum repayment period for an HDB housing loan is 25 years, or up till age 65, whichever is the shorter. Hence, a single or a couple both aged 38 may take up an HDB housing loan up to 25 years, if they meet the eligibility conditions.

For more information on the eligibility for an HDB housing loan, please click here.

 

How do we calculate how much grants we can take?

There are various housing grants available for the different housing options. For more information, please visit HDB InfoWEB.

 

To rent HDB flat while waiting for BTO flat. Does this only apply to first time applicant?

HDB has a Parenthood Provisional Housing Scheme (PPHS) which provides rental flats at below market rates to buyers who have booked an uncompleted flat under the Build-To-Order or Sale of Balance Flats exercise. For PPHS applicants who are couples, both parties must be first-timers, or one party is a first-timer and the other party is a second-timer. If they are divorced or widowed parent with children, they may be first-timer or second-timer families.

For more information, please click here.

 

If we just bought an HDB flat and have two children in the next few years and space is a constraint, must we wait for the completion of the 5 years period to upgrade to a larger place? Are there exceptions?

Flat owners must fulfil a set of eligibility conditions before they may sell their flat on the open market. Please click here for more information.

Home-seekers are advised to plan ahead and ensure that they are able to meet the eligibility conditions for both the flat purchase and subsequent flat ownership, before applying to buy an HDB flat.

 

After owning an HDB, can I still buy overseas properties?

HDB flat owners are not allowed to invest in local or overseas private properties within five years after the purchase of an HDB flat. As for the eligibility to invest in private property after the five-year period, please click here.

 

How long from the Probable Completion Date (PCD) before keys collection?

The PCD is the probable date of completion of a new block. There will be updates closer to the date of completion. Once the keys of a new block are handed over to the HDB, HDB will invite the flat buyers to collect the keys expeditiously.

 

I Love Children would like to thank Mr Jerry Su, Senior Estate Manager from Housing & Development Board for his valuable input.

 

The following responses are correct at the date of publication. For the complete information and latest updates on buying and financing a flat purchase, please visit HDB’s InfoWEB at www.hdb.gov.sg.

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