Request For Service
Written by Richard Sng
HDB Apartments are built & developed over the years to meet ever changing needs of Singaporeans & Singapore Permanent Residents to own a place where they can call home with the convenience of amenities within walking distance. Purchasing a HDB Apartment could be one of the most important commitments in your whole life. Therefore, it is essential that HDB Apartment buyers are familiar with HDB policies that are in place, their financial commitments & procedures before deciding to purchase a HDB Apartment from the resale market.
FINANCIAL COMMITMENT
I would usually advise potential buyers to work on their financial commitments first before they even start looking for flats on sale & proceed further.
2 types of loans are available to HDB home buyers:
HDB Concessionary Loan
Usually capped at 90% of market value or purchase price, whichever is lower;
To be eligible for the HDB concessionary loan, the applicants and/or occupiers must fulfilled the following:
- Buyer must be at least a Singapore Citizen to be eligible for the loan;
- Monthly Household Income or MHI (including incomes of all applicants & occupiers listed in the same flat) cannot exceed S$8,000;
- Applicants have not previously taken two or more HDB concessionary loans;
- Applicants applying for HDB concessionary loan for the second time will only be granted the loan provided they upgrade to a bigger flat as compared to the last flat they purchased using HDB concessionary loan;
- Applicants and/or occupiers must not own any private property in Singapore and/or overseas;
- Applicants and/or occupiers must not have disposed or sold their private property within the last 30 months at the time of the loan application;
- Applicants & occupiers must not owned more than 1 than one market / hawker stalls or commercial / industrial property in Singapore or overseas;
- Applicants and/or occupiers own one market / hawker stall or commercial / industrial property and operate the business yourself;
- Applicants are buying a 5 room or smaller resale flat under the Single Singapore Citizen (SSC) Scheme with a gross monthly income not exceeding $3,000;
Bank Loan
- have already enjoyed 2 or more concessionary interest rate mortgage loans previously. This is regardless of whether the previous loans were for buying flats directly from HDB or from the open market;
- have already enjoyed 1 concessionary interest rate mortgage loan and 1 housing subsidy previously and are not buying a flat of a type that is bigger than their current flat or the flat they last owned (if they currently do not own an HDB flat);
- have already enjoyed 1 concessionary interest rate mortgage loan and 1 housing subsidy previously and the property they last disposed off is a private residential property;
- own 2 or more owner-operated market/hawker stalls or any commercial/industrial property inside or out of Singapore;
- own 1 market/hawker stall or commercial/industrial property but do not operate the business themselves;
- own any private residential property in Singapore and/or overseas.
COMPARISON TABLE & CHECKLIST FOR HDB LOAN & BANK LOAN (tick if criteria met)
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HDB LOAN |
BANK LOAN |
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Flat buyers can apply for an HDB loan if you and / or your essential occupiers (if any): |
Flat buyers who are not eligible for an HDB loan must apply for a bank loan, i.e. when you and/or the essential occupiers: |
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have at least one buyer who is a Singapore citizen; |
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buyer are non-Singapore Citizen or Singapore Permanent Resident |
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have a monthly household income not exceeding $8,000; |
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monthly household income exceeds $8,000; |
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have not previously taken two or more HDB concessionary interest rate loans; |
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have already enjoyed 2 or more concessionary interest rate mortgage loans previously. This is regardless of whether the previous loans were for buying flats directly from HDB or from the open market; |
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have previously taken one HDB concessionary interest rate loan and one housing subsidy and buying a bigger flat type than your current flat or the flat last owned (if you currently do not own an HDB flat); |
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have already enjoyed 1 concessionary interest rate mortgage loan and 1 housing subsidy previously and are not buying a flat of a type that is bigger than their current flat or the flat they last owned (if they currently do not own an HDB flat); |
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have previously taken one HDB concessionary interest rate loan and one housing subsidy and the residential property last disposed off is not a private property; |
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have already enjoyed 1 concessionary interest rate mortgage loan and 1 housing subsidy previously and the property they last disposed off is a private residential property |
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do not own any private residential property (including HUDC flat / Executive Condominium) in Singapore or overseas; |
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own any private residential property in Singapore and/or overseas; |
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have not disposed off any private residential property within 30 months before the date of application for HDB Loan Eligibility (HLE); |
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have disposed off any private residential property within 30 months before the date of application for HDB Loan Eligibility (HLE); |
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do not own more than one market / hawker stalls or commercial / industrial |
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own 2 or more owner-operated market/hawker stalls or any commercial/industrial property inside or out of Singapore; |
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own one market / hawker stall or commercial / industrial property and operate the business yourself; |
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own 1 market/hawker stall or commercial/industrial property but do not operate the business themselves; |
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are buying a 5-room or smaller resale flat under the Single Singapore Citizen (SSC) Scheme with a gross monthly income not exceeding $3,000. |
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COMPARISON TABLE & CHECKLIST FOR BUYER’S ELIGIBILITY SCHEME (tick if criteria met)
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ELIGIBILITY SCHEME |
WHO’S ELIGIBLE |
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Public Scheme |
You are buying the resale flat with
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Citizenship |
Be a Singapore Citizen (SC) or Singapore Permanent Resident (SPR) Include at least one listed occupant who is a SC or SPR.
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Age |
At least 21 years old. |
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Family Nucleus |
You must form a family nucleus, such as:
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Income Ceiling |
There is no income ceiling unless you are applying for CPF Housing Grant and/or an HDB Loan. |
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Ownership of Private Residential Property |
You can own private property (unless you are applying for a CPF Housing Grant and/or an HDB loan). However, you must live in the HDB resale flat. |
Fiancé/Fiancée SchemeYou are buying the resale flat with
- your fiancé/fiancée (intending to get married)
Single Singapore Citizen SchemeYou are buying the resale flat by yourself as either a
- Single; or
- Widowed Person; or
- An Orphan
Joint Singles SchemeYou are buying the resale flat with a few others (up to a maximum of 4 applicants) as either a
- Single; or
- Widowed Person; or
- An Orphan
Non-Citizen Spouse SchemeYou are buying the resale flat with
- your wife/husband who is not a citizen of Singapore
Non-Citizen Family SchemeYou are buying the resale flat with
- your family members e.g. parents who are non-citizens
Orphans SchemeYou (an orphan) are buying the resale flat with
- your single siblings
Citizen/SPR Siblings SchemeYou are buying the resale flat with
- your single siblings and your parents are
- neither Singapore Citizens or Singapore Permanent Residents
- do not permanently stay in Singapore
Conversion SchemeYou are buying 2 units of resale flats which are:
- 3-room or smaller resale flats
- adjoining 3-room or smaller resale flats
with either your
- husband/wife and children (if any); or
- parents and siblings (if any); or
- children under your legal custody, care and control (if you are widowed or divorced)
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