All you need to know about HDB.
More than 80% of Singapore’s population live in HDB flats, and it makes up more then 73% of the total Singapore housing Stock, HDB is the bread and butter in the housing world of Singapore.
BTO (Built to Order) is commonly known as the BUC (Building Under Construction) version for HDBs. This is usually the ideal choice among the local community, who would prefer to own an affordable property that is a Citizens–only entitlement.
Resale HDBs are basically units that are already completed and ready to live in. There are quite a number of unique differences in regulations between these two type of HDBs.
“HDB 101, what do you need to know?”
Quick PropertyWiki tip 1: No, foreigners and Singapore PRs are not allowed to buy a BTO property, however Singapore PRs can purchase resale HDB units. Additional buyers’ Stamp duty applies.
Quick PropertyWiki Tip 2: An SPR couple is also not allowed to buy a BTO property, only resale units. If you are married to a Singapore Citizen however, then yes, you are entitled to make the BTO purchase.
When purchasing a Resale HDB, there are some considerations to think about :
- Am I purchasing as a Single, Married, or buying with my family?
- How much loan entitlement do I have?
- How much CPF can I use?
- Other alternative or benefits I can explore?
1. Am I purchasing as a Single, Married, or buying with my family?
So in order to purchase a HDB property, you need to determine your status. So HDB will only allow 3 types of scheme:
- Single Scheme: Minimum of age 35 to entitle you to purchase a BTO (Limited rooms allowed only for BTOs) Note that Orphans would also need to buy together with a sibling or get married in order to purchase a property, otherwise wait till 35 years old that is similar to single schemes.
- Married Scheme: Also known as the Fiancé/Fiancée Scheme, only through a matrimonial marriage that will entitle you to purchase a HDB property before the age of 35.
- Family Scheme: HDB emphasizes a lot on having a family nucleus, hence if you are single but you really need to buy a property, you can purchase it together with your parents/siblings/children. Note that they are not allowed to own a property in order to be able to buy together with you.
PropertyWiki Tip: So what happens if anyone owns a property locally or overseas? You MUST dispose of all private properties locally and overseas, 6 months before the property purchase (From exercising date). Owning a private property also disallows you to take up and housing grants and HDB loans.
2. How much loan entitlement do I have?
In order to be eligible for the HDB loan (Basically a bank mortgage loan, but with HDB directly and not the banks), you need to note on the following regulations:
- One of the owners need to be a Singapore Citizen (So those who are SPRs purchasing a resale HDB property, you would need to take a private bank loan instead – Entitlement up to 75% of purchase price, subjected to your income eligibility).
- Entitlement is extended to those who either not taken a HDB loan before, or those who took HDB loans for your previous HDB purchase and wish to purchase another HDB unit as an upgrade.
PropertyWiki Tip: i.e. If you purchased a HDB property and took HDB loans, subsequently sold it and purchased a private property locally/overseas. Years later, decided to sell this private property to purchase back a HDB property, you will not be allowed to take HDB loans. Those who purchase and stick to HDB properties, but to upgrade to a bigger unit, as an example, they are eligible for the HDB loans.
Income limit for buying a HDB
Gross monthly income:
- Singles – Not more than $6000 (For BTO you can only own 2 room new flat, resale units wise, up to 5 room)
- Families – Not more than $12,000 (Couples combined income should not exceed this amount)
- Extended families – $18,000 (Combined families household income cannot exceed $18,000)
You must not own a private residential property previously 30 months before date of application for the HDB loan. The only property that you can own is one (1) commercial property, that is used to make your living/operating your business.