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Desmond Lee: Lower upfront downpayment for young couples’ HDB flats from June

From June, eligible young couples buying an HDB flat get more support with a reduced 2.5% initial downpayment. MND Minister Lee highlighted this measure in Parliament, aiming to alleviate the initial financial burden for these couples.



SINGAPORE: Starting from June,, eligible young couples buying a new Housing Board (HDB) flat will benefit from enhanced assistance, featuring a reduced initial downpayment of 2.5% of the purchase price.

National Development Minister Desmond Lee announced on Tuesday (5 Mar) that young couples applying for an unfinished five-room or smaller flat, through schemes like BTO, Sale of Balance Flats, or open booking, will receive additional support with a lowered initial down payment.

This announcement also made in a press release by the Ministry of National Development and HDB.

Currently, young couples, including full-time national servicemen (NSFs), students, or those who have completed their studies or National Service within the last 12 months of applying for the HDB flat eligibility letter, have the option to apply for a new flat first.

They can defer their income assessment for housing grants or loans until just before key collection.

The reason for this deferral is to avoid potential ineligibility for grants like the Enhanced CPF Housing Grant (EHG), which mandates at least one party to be continuously employed for a minimum of 12 months.

By postponing the income assessment to the key collection stage, these couples increase their likelihood of eligibility for the grant and may even qualify for a higher loan amount.

Furthermore, young couples currently benefit from a staggered downpayment scheme, enabling them to pay the minimum 20% downpayment for their flat in two instalments.

The first instalment, ranging from 5% to 10% depending on the loan type, is made initially, while the second instalment is due at key collection.

Minister Lee announced on Tuesday that, since 2018, over 3,700 couples have utilized the deferred income assessment and the support of the staggered downpayment scheme to alleviate upfront costs and commence their journey toward home ownership.

Addressing the Parliament during the Committee of Supply Debate for MND, Minister Lee expressed the government’s commitment to further easing the initial financial burden for these young couples.

He noted that those who defer their income assessment must rely on personal savings or family support for the initial costs of booking a flat, as they only receive their Enhanced CPF Housing Grant (EHG) closer to key collection.

Acknowledging that the reduced initial downpayment is still a substantial financial obstacle for some, Minister Lee highlighted the enhancement of the staggered downpayment scheme.

The initial downpayment will be reduced to 2.5%, aiming to alleviate the initial costs for these couples in the flat-buying process.

This change is set to take effect from the June Build-to-Order (BTO) sales exercise.

Support for PPHS eligible families: Temporary Rental Vouchers of S$300 monthly

Families eligible for the Parenthood Provisional Housing Scheme (PPHS) will receive additional assistance in the form of temporary rental vouchers amounting to S$300 per month.

The PPHS allows families to rent an HDB flat while awaiting the completion of their homes.

In response to growing demand, HDB aims to double the current supply of rental flats from 2,000 to 4,000 units by the second half of 2025.

To facilitate eligible families in renting HDB flats or bedrooms in the open market, the government will introduce the PPHS (Open Market) Voucher for one year, commencing in July.

Minister Lee emphasized that the S$300 voucher amount was carefully calibrated to offer relief to eligible families while mitigating potential inflationary impacts on the rental market.

Authorities will closely monitor the vouchers’ impact on the rental market.

To qualify for the new voucher, families must meet PPHS criteria and have a registered rental tenancy with HDB at the application stage.

The reimbursement-based voucher will be provided based on the duration of their tenancy within the specified one-year period.

Families renting from immediate family members or close relatives will not be eligible. Further details will be shared closer to the implementation date, according to authorities.

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The whole HDB, COE, GST is just a cash cow for the MIW.
Hence all their cronies are in on it.

Ironically SG has 7 out of 10 working adults are graduates of some kinds, some from the ivy’s league uni, do they know it is a scam!!??

What ever period one has to pay the mortgage, the final cost of the flat is still the same. The longer it takes for repayment the more interest one has to pay.

The elephant in the room is still leasing a BTO, which is just too expensive. Unaffordable. Period.

Hello, Mr Millionaire Minister. Do you understand the significance behind a “Downpayment?” Of course you do not, you are a “lawyer.” If you pay $90K instead of $100K as a downpayment for a $500,000 5-room HDB flat. Is the flat cheaper? Yes? No? The answer is No. The flat still costs $500,000. Now let’s say the mortgage repayment is $10K a year (0% interest to make it easy). What is significance of lowering the downpayment? Simple, I need to repay $10K for 41 years instead of 40 years now. Now we add interest into this equation. The principal of the… Read more »

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