Helping you finance one of your biggest financial commitments.
If you’re a first-time homeowner, there are various housing grants and schemes available that applicants like yourself can take advantage of to help finance your first flat. To give you an idea, eligible first-timer families could get up to $80,000 in grants for a BTO flat, or up to $190,000 for a resale flat.
Here’s what you need to know about HDB’s housing grants and schemes for first-timers – all in one place (new acronyms included)!
HDB housing grants for first-timers
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Waiting for a BTO isn’t an option for everyone – you might be looking at resale flats based on your needs, like wanting to move in quickly or finding a location close to your parents in a mature estate where BTO projects are not available, for mutual care/support.
While resale flats may not be subsidised like BTO flats are, you can still rely on various grants to finance your purchase.
Here’s a table summarising all the grants and maximum grant amounts for new and resale flats, available for both families and singles.
HDB Housing Grants available for eligible families and singles
| Grant Type | For families | For singles |
|---|---|---|
| Enhanced CPF Housing Grant (EHG) – for new and resale flats |
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| CPF Housing Grant – for resale flats only |
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| Proximity Housing Grant (PHG) – for resale flats only |
|
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| Total grant amount |
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These grants can be stacked depending on your eligibility. The PHG is applicable if you’re buying a resale flat to live with your parents/married child, or within 4km of where they live.
More BTO/SBF ballot chances for first-timer families
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At the Committee of Supply Debate in March 2023, a new category of buyers was introduced to help young families own a flat and settle down quickly: First-Timer (Parents & Married Couples), or FT(PMC).
To quality, first-timer families have to meet the following criteria when buying a BTO/SBF flat:
- Families with at least one Singapore Citizen child aged 18 or below; or married couples, aged 40 and below; and
- Never owned or sold a residential property before; and
- Did not have the chance to book a new flat in the past five years, before flat application
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FT(PMC) buyers will be given three ballot chances for their SBF/BTO applications, which is an additional chance on top of the two that first-time buyers receive. This change will take effect from the next sales exercise in end-September/early October 2023.
Both FT(PMC) and other first-timer families who are unsuccessful in two or more attempts for a BTO flat in a non-mature estate (NME) will receive an additional ballot chance for each subsequent NME BTO application.
Number of ballot chances for non-mature estate BTOs
| Applicant Category | Ballot chances in 1st and 2nd BTO attempt | Ballot chances in 3rd attempt (for BTO in NME only) | Ballot chances in 4th attempt (for BTO in NME only) |
|---|---|---|---|
| FT(PMC) | 3 | 4 | 5 |
| Other First-Timer Families | 2 | 3 | 4 |
| Second-Timers | 1 | 1 | 1 |
Apart from the increased ballot chances, up to 40% of BTO flats and up to 60% of SBF flats will be set aside for FT(PMC) buyers in each sales exercise. This falls under the enhanced Family and Parenthood Priority Scheme, which takes effect from the September 2023 BTO exercise.
Even if you don’t fall under the FT(PMC) category, rest assured that the bulk of HDB’s BTO flat supply is already set aside for first-timer families, and that you will have two ballot chances when vying for a queue number.
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If you obtain a queue number as a first-timer but decline to book a flat, this is considered a non-selection count*. Currently, if you accumulate two non-selection counts (i.e. decline to book a flat twice), you will be deemed a second-timer family for one year.
Do note that starting from the sales exercise in end-September/early October 2023, with just one non-selection count, you’re considered a second-timer family for a year – this includes those under the FT(PMC) category.
HDB will, however, exercise flexibility to waive the non-selection count if applicants had few available flats to choose from at their flat selection appointments, as follows:
- 10 or fewer flats to choose from in a BTO exercise
- 5 or fewer flats to choose from in an SBF exercise
*Unsuccessful BTO applications will not lead to a non-selection count. This refers to a) an applicant who is not invited to book a flat as they did not receive a queue number, or b) all available flats are taken up before an applicant’s queue number is due. Such applicants are still considered first-timers or FT(PMC) the next time they ballot.
Subsidies under new estate classification for BTO projects (with effect from the second half of 2024)
The new classification for BTO flats is understandably one topic that created a buzz at the National Day Rally 2023.
Unlike the current classification by mature and non-mature estates, the new system differentiates BTO projects by their location – and comes with differing subsidies.
Difference between Standard, Plus and Prime BTO flats
| BTO project type | Location | Subsidies* | Conditions |
|---|---|---|---|
| Standard | Islandwide | Standard | Standard: - 5-year MOP - Renting out whole flat allowed after MOP |
| Plus | Choicer locations in regions (e.g. near MRT stations and town centres) | More than Standard-type projects | Tighter than Standard types: - 10-year MOP - Subsidy clawback upon resale of flat, but lower than for Prime flats - Renting out whole flat not allowed after MOP |
| Prime | Choicest locations, usually close to city centre | Most compared to other two types | Tightest: - 10-year MOP - Subsidy clawback upon resale of flat - Renting out whole flat not allowed after MOP |
*You can expect more details on the subsidies in time to come.
In case you were wondering, this new framework will take effect from the second half of 2024, so the reclassification and accompanying conditions don’t apply to projects that have already been launched.
Data presented is accurate as at time of publishing on 13 September 2023.
This article was adapted from MyNiceHome, HDB’s official website for all things related to home buying and renovation in Singapore. Check out the original article here.
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