By : Jessie Ng
14 August 2018
Buying a home is a long-term financial commitment for many of us. It should be carefully planned so that you know what you can afford, and not overstretch your finances in the long run.
To help you with your home purchase, HDB offers a range of housing grants for different home buyers. Be a savvy home hunter and familiarise yourself with the types of grants available!
Here are 3 key questions to help you get an idea of the grants that you are eligible for.
What type of flat are you buying?
If you are planning to buy a Build-to-Order (BTO) flat from HDB, you can enjoy up to $80,000 in housing grants. If you prefer an HDB resale flat, you can get up to $120,000 in housing grants.
For other housing types such as Design, Build and Sell Scheme (DBSS) Flat or Executive Condominiums (ECs) offered by developers, HDB also offers grants of up to $120,000 and $30,000, respectively.
If you have not previously bought a subsidised flat from HDB or received any housing grant, you are likely to be considered a first-time home buyer. As first-timers, you may apply for the housing grants mentioned above.
Are you applying as a single or family?
The maximum amount of grants that you will be eligible for depends on whether you are applying as a single or family.
In general, first-timer singles will enjoy half the grant quantum compared to first-timer families. This is to ensure a fair allocation of the grants among home buyers. For instance, when buying a BTO flat from HDB, eligible first-timer singles can enjoy AHG and SHG of up to $40,000, i.e. half of the quantum of up to $80,000 for eligible first-timer families.
How long have you been in continuous employment?
Most of the HDB housing grants require you to fulfil the continuous employment condition, among other eligibility requirements. Being in continuous employment at the point of applicantion helps ensure you have built up your finances, and are ready to commit to your home purchase.
If you have just started work, or if your other half is a tertiary student or NSman, fret not. For young first-timer couples who wish to buy their first home earlier, HDB has also introduced a new measure to allow the deferment of income assessment till just before key collection for their new flat. This allows young couples to apply a flat first and work towards gaining continuous employment, while waiting for their new flat to be completed. The measure is expected to help young couples to reduce the time required to secure a new flat by at least a year.
Hope these tips on housing grants will come in handy as you explore your housing options and work out your budget.
Got other questions on housing grants? Write to us at firstname.lastname@example.org!