In this article, we’ll be exploring the world of HDB housing, designed to provide affordable homes to Singaporean citizens.Â
We’ll delve into the different types of HDB flats, the eligibility criteria for purchasing a resale flat, and the step-by-step process involved in buying one.
Whether you’re a Singapore Permanent Resident (PR) or simply interested in learning more about HDB housing, we’ve got you covered.Â
Key Takeaways
| Topic | Key Takeaways |
|---|---|
| HDB Flat Overview | – HDB flats are government-subsidized housing units in Singapore providing affordable homes to citizens. |
| Types of HDB Flats Available | – HDB flats come in various types and sizes, catering to different household needs. |
| Purchasing an HDB Flat | – HDB flats can be purchased directly from HDB or through the resale market. |
| Eligibility Criteria for Buying an HDB Resale Flat | – Singapore Citizens (SCs), Permanent Residents (PRs), and non-Malaysian SPRs can buy HDB resale flats. |
| Eligibility Criteria for PRs | – PRs need to fulfill specific requirements, such as holding PR status for at least three years and forming a family nucleus. |
| Income Ceilings for PRs | – Income ceilings for PRs vary based on flat type and location. |
| Process of Buying an HDB Resale Flat as a PR | – Steps include research, shortlisting, making an offer, signing a sale agreement, applying for a loan, and CPF withdrawal. |
| Public Schemes for PRs | – PRs can apply for public schemes like the Family Grant and Enhanced CPF Housing Grant (EHG) for financial assistance. |
| Documents Required for HDB Resale Flat Application | – ICs, marriage certificate, divorce certificate (if applicable), proof of income, financial plan, and loan approval letter. |
| SPR Quota for HDB Resale Flats | – SPR quota limits the number of non-citizen households in each HDB block/neighborhood, promoting community cohesion. |
| Public Schemes for SPRs | – SPRs can avail themselves of public schemes like the Family Grant and EHG for financial support. |
| Enhanced CPF Housing Grant (EHG) | – EHG provides financial assistance to first-time buyers, including PRs, based on income and flat type. |
| Benefits of Purchasing an HDB Resale Flat | – Public schemes make homeownership more affordable, promote social and family cohesion, and assist low- to middle-income families. |
| Advantages and Considerations: New vs. Resale Flat | – New flats offer exemption from EIP and SPR quotas, while resale flats have lower prices and faster transactions. |
| Resale Application Process for HDB Flats | – Steps involve eligibility assessment, securing an OTP, submitting a resale application, approval, and completion of the transaction. |
| Factors to Consider When Buying an HDB Resale Flat | – Valuation, eligibility conditions, and CPF housing grants are essential factors to consider. |
| Option to Purchase HDB Resale Flat from HDB | – Direct purchase from HDB involves searching, making an offer, submitting an application, conveyancing, and completion of the purchase. |
| Role of Single SPRs in HDB Resale Flat Ownership | – Single SPRs can purchase resale flats but have certain restrictions and requirements to fulfill. |
Overview of HDB Housing in Singapore
What is an HDB flat?
Housing and Development Board (HDB) flats are government-subsidized housing units developed by the Housing and Development Board of Singapore.
These flats are meant to provide affordable homes to the citizens of Singapore.
What are the types of HDB flats available?
There are several types of HDB flats available, such as 2-room Flexi, 3-room, 4-room, 5-room, and Executive flats.
These flats come in varying sizes and layouts that cater to different household needs.
How can one purchase an HDB flat?
One can purchase an HDB flat either directly from HDB through a Build-To-Order (BTO) or the Sale of Balance Flats exercise or the resale market.
The resale market offers a more varied selection of units, including older flats and those in prime locations.
Understanding the Eligibility Criteria for Buying an HDB Resale Flat
Who is eligible to buy a resale flat?
Singapore Citizens (SCs), Permanent Residents (PRs), and non-Malaysian SPRs are eligible to purchase an HDB resale flat.
However, there are different eligibility criteria and regulations for each group.
What are the eligibility criteria for PRs?
PRs need to have held their PR status for at least three years and maintain a valid Re-Entry Permit.
They also need to form a family nucleus (at least one other PR or SC) or use the Non-Citizen Spouse Scheme with a Singapore Citizen or PR spouse.
What are the income ceilings for buying HDB flats?
The income ceilings for purchasing HDB flats vary according to the flat type and location.
The current income ceilings for PRs are S$14,000 for families, S$7,000 for singles, and S$21,000 for extended families.
Exploring the Process of Buying an HDB Resale Flat as a Singapore Permanent Resident (PR)
What are the steps involved in purchasing a resale flat?
The first step in purchasing a resale flat is to research and shortlist flats that fit the buyer’s needs and budget.
Once the buyer has found a suitable flat, they need to make an offer to the seller through a resale application.
After the seller accepts the offer, both parties need to sign a sale agreement and submit it to HDB within a specific period.
The buyer can then apply for a bank loan and a CPF withdrawal for the purchase.
Can PRs apply for public schemes for HDB resale flats?
Yes, PRs can apply for public schemes for HDB resale flats, such as the Family Grant and the Enhanced CPF Housing Grant (EHG).
These schemes aim to provide financial assistance to first-time buyers and low- to middle-income families.
What are the documents required to apply for an HDB
resale flat?
The necessary documents to apply for an HDB resale flat include the buyer and seller’s IC, marriage certificate (if applicable), divorce certificate (if applicable), and proof of income.
The buyer also needs to provide a financial plan and a bank loan approval letter.
Public Schemes and Quotas for SPRs Buying HDB Resale Flats
What is the SPR quota for HDB resale flats?
HDB sets a quota for PRs purchasing HDB resale flats, also known as the SPR quota.
The quota limits the number of non-citizen households to 5% or 8% of the total number of households in each HDB block and neighbourhood.
The SPR quota ensures that the majority of households in each block and neighbourhood are SCs and promotes greater cohesion among communities.
What are the public schemes available for PRs?
PRs can apply for several public schemes when purchasing an HDB resale flat.
These schemes include the Family Grant, which offers up to S$50,000 for families to buy a resale flat, and the EHG, which provides up to S$80,000 to assist first-time buyers with their home purchase.
What is the Enhanced CPF Housing Grant (EHG)?
The EHG is a public scheme that provides financial assistance to first-time buyers, including PRs, who are purchasing an HDB resale flat.
The grant ranges from S$5,000 to S$80,000 and depends on the buyer’s income and the flat type they are purchasing.
Benefits of Purchasing an HDB Resale Flat through the Public Scheme
What are the benefits of purchasing a resale flat through
the public scheme?
The public schemes for purchasing HDB resale flats provide financial assistance to low- to middle-income households, making it easier for them to afford a home.
These schemes also help promote social and family cohesion by encouraging eligible buyers to form family nuclei or enter into a marriage to qualify for the schemes.
What are the different types of public schemes and their
benefits?
Public schemes for HDB resale flats include the Family Grant, Additional CPF Housing Grant, Special CPF Housing Grant, and EHG.
Each scheme offers different levels of financial assistance and has specific eligibility criteria.
How can one apply for the public scheme for purchasing
HDB resale flats?
The buyer can apply for the public scheme when submitting their application for a resale flat.
The application will undergo scrutiny, and HDB will inform the buyer if they are eligible for the scheme.
The buyer can then apply for the grant through HDB or the CPF Board, depending on the scheme.
Exploring the EIP and SPR Quota for SPRs Buying HDB Resale Flats
What is the EIP and SPR quota for PRs buying HDB resale
flats?
The Ethnic Integration Policy (EIP) and the Singapore Permanent Resident (SPR) quota are two policies implemented by the HDB to ensure integration of different ethnic communities and to prevent over-concentration of SPRs in any given HDB estate, respectively.
The EIP policy ensures a balanced racial mix, keeping the number of Singapore Citizens (SC) of various races within certain limits.
The SPR quota regulates the proportion of non-Malaysian SPR households in HDB estates.
In general, PRs are subject to the SPR quota and can only buy HDB resale flats in non-Malaysian SPR-designated blocks.
Additionally, PRs must comply with the EIP as well.
How does the quota system affect PRs looking to buy HDB
resale flats?
The quota system means that PRs have limited options when it comes to buying HDB resale flats.
They can only purchase a resale flat in an area where the SPR quota has not been reached.
This makes it more challenging for PRs to buy an HDB flat in certain popular areas.
Are there any exceptions or special cases for PRs buying
HDB resale flats?
Yes, there are certain exceptions and special cases.
For example, PRs who are at least 21 years old and are part of a Singapore Citizen (SC) household can buy a resale HDB flat directly from the HDB without being subject to the SPR quota.
If the PR is single or their household comprises only of SPRs, they can still purchase a resale HDB flat subject to the quota.
There are also special Marriage schemes available to PRs that provide them with greater flexibility when it comes to buying an HDB flat in Singapore.
Advantages and Considerations of Buying a New HDB Flat vs. a Resale Flat
What are the advantages of buying a new HDB flat as a
PR?
Buying a new HDB flat directly from the HDB means that PRs do not have to worry about the EIP and SPR quotas.
Additionally, new flats come with a 99-year leasehold, which means that they are cheaper than those with shorter leasehold estates.
Furthermore, PRs who purchase a new HDB flat can apply for an HDB loan, which has lower interest rates compared to bank loans, making it more affordable.
What are the advantages of buying a resale flat as a PR?
One of the key advantages of buying a resale HDB flat is the lower purchase price compared to a new flat.
Additionally, the transaction can be completed much faster than buying a new flat.
Resale HDB flats also have a ready pool of buyers as they can be sold to both SCs and PRs without being subject to any additional conditions.
What are some important considerations to keep in mind
when deciding between buying a new HDB flat or a resale
flat?
When deciding between buying a new HDB flat or a resale flat, there are several factors to consider.
One important factor is the age of the property.
A new flat will require less maintenance and repairs compared to a resale flat.
Another consideration is the location of the property.
Resale flats are generally located in established HDB estates with amenities such as shops, markets, and schools, while new flats may be located in less developed areas.
Understanding the Resale Application Process for HDB Flats in Singapore
What is the resale application process for HDB flats in
Singapore?
The resale application process for HDB flats in Singapore involves several steps.
Firstly, the flat buyer needs to assess their eligibility to purchase an HDB resale flat.
The buyer also needs to secure a valid Option to Purchase (OTP) from the seller.
An OTP is a legal agreement that allows the buyer to purchase the flat and is valid for 21 calendar days.
Once the OTP is secured, the buyer needs to submit a resale application to the HDB.
The HDB will then process the application and assess the eligibility of the buyer before granting approval for the resale transaction.
The final step is the completion of the resale transaction.
What documents are required for the resale application
process?
The resale application process requires several documents to be submitted to the HDB.
These include the Option to Purchase (OTP), the Sales and Purchase Agreement, proof of downpayment, and proof of financing (if any).
How long does the resale application process typically
take?
The resale application process typically takes around 10 weeks from the time the buyer submits the application to the completion of the resale transaction.
Key Factors to Consider When Purchasing an HDB Resale Flat as a PR
What are some important factors to consider when buying
an HDB resale flat as a PR?
One important factor to consider when buying an HDB resale flat is the valuation of the property.
The valuation will determine the purchase price of the flat.
Another factor to keep in mind is the resale eligibility conditions which apply to PRs looking to buy HDB resale flats.
These conditions include a minimum occupation period, ownership of no other private property in Singapore or overseas, and legal custody of children (if any).
How does the valuation of the HDB resale flat affect the
purchase price?
The valuation of the HDB resale flat will affect the purchase price.
If the valuation is higher than the purchase price, the buyer will pay the approved valuation.
If the valuation is lower than the purchase price, the buyer will need to top up the difference in cash.
What eligibility conditions apply to PRs looking to buy HDB
resale flats?
There are several eligibility conditions that apply to PRs looking to buy HDB resale flats.
PRs must have fulfilled the minimum occupation period (MOP) of five years in their current HDB flat or private property.
They must also not own any other private property in Singapore or overseas and be legally allowed to take custody of children (if any).
CPF Housing Grants for Singapore PRs Buying HDB Resale Flats
What CPF housing grants are available for PRs buying HDB
resale flats?
There are two CPF housing grants available for PRs buying HDB resale flats, the Family Grant and the Proximity Grant.
The Family Grant is available to PRs who form a family nucleus with a Singapore Citizen or PR, while the Proximity Grant is available for PRs who buy an HDB resale flat near their parents or married children.
How do PRs apply for CPF housing grants for HDB resale
flats?
PRs can apply for CPF housing grants for HDB resale flats through the HDB resale portal when submitting their resale application.
What are the eligibility criteria for CPF housing grants for
PRs buying HDB resale flats?
The eligibility criteria for CPF housing grants for PRs buying HDB resale flats include having a household income of less than $14,000 and not owning any other private property in Singapore or overseas.
Exploring the Option to Purchase an HDB Resale Flat Directly from HDB
What is the process of buying an HDB resale flat directly
from HDB?
HDB resale flats can be purchased directly from HDB.
The process begins by searching for a unit through HDB’s e-Service or working with a property agent.
Once a unit is identified, the applicant makes an offer to the flat owner.
The next step is to submit a flat application through HDB’s website.
Once the application is approved, the conveyancing process begins.
The purchase is finalized by attending the resale completion appointment and paying the resale price, along with any additional costs, including conveyancing fees and the resale levy.
What are the eligibility criteria to purchase an HDB resale
flat directly from HDB?
To buy an HDB resale unit as a Singapore PR, one must be at least 21 years old, have a valid Singapore address, and meet the minimum occupation period (MOP) of five years.
The MOP refers to the initial period during which a flat owner cannot sell the flat.
So, if you’re planning to purchase an HDB resale flat, make sure you’ve met the MOP of any prior HDB purchase before proceeding.
What are the costs associated with purchasing an HDB
resale flat directly from HDB?
The costs associated with buying an HDB resale flat include the price of the resale flat, conveyancing fees, and the resale levy (if applicable).
PR flat owners are also responsible for paying property taxes and any other associated fees, such as utilities.
Financing options are limited to a maximum of 75% of the flat’s price.
Additionally, eligible families can receive CPF housing grants to buy an HDB resale flat.
Understanding the Role of Single Singapore Permanent Residents in HDB Resale Flat Ownership
Can single SPRs purchase HDB resale flats?
Single Singapore Permanent Residents (SPRs) are eligible to purchase resale HDB flats subject to the same eligibility criteria used for other PRs.
However, single SPRs are not permitted to purchase Executive Condominiums or private condos.
What are the restrictions for single SPRs when it comes to
HDB resale flat ownership?
Single SPRs are required to rent a flat separately for the time that they are attending the resale completion appointment.
If the single SPR is an orphan, they can buy a resale flat together with their orphan siblings.
If the SPR is renting a flat separately, they can purchase a resale flat together with another SPR.
Can single SPRs purchase executive condominiums or
private condominiums instead of HDB resale flats?
No, under current regulations, single SPRs are not eligible to buy Executive Condominiums or private condos in Singapore.
Exploring the Availability of HDB Resale Flats to Singapore PRs
Are HDB resale flats available for purchase by Singapore
PRs?
Yes, HDB resale flats are available for purchase by Singapore PRs subject to meeting the eligibility criteria.
What are the eligibility criteria for Singapore PRs to
purchase HDB resale flats?
To buy an HDB resale unit as a Singapore PR, one must be at least 21 years old, have a valid Singapore address, and meet the minimum occupation period (MOP) of five years.
The MOP refers to the initial period during which a flat owner cannot sell the flat.
So, if you’re planning to purchase an HDB resale flat, make sure you’ve met the MOP of any prior HDB purchase before proceeding.
What are the restrictions for Singapore PRs when it comes
to HDB resale flat ownership?
Singapore PRs are not allowed to own both HDB flats and private housing simultaneously.
If the PR already owns private housing, they must dispose of the property within six months of the HDB purchase.
Additionally, PRs must sell the flat back to HDB if their Singapore PR status is revoked or if they want to purchase a private property.
Financing Options for Singapore PRs Buying HDB Resale Flats
What financing options are available for Singapore PRs
purchasing HDB resale flats?
Singapore PRs are eligible to take HDB loans and bank loans for an HDB resale flat purchase.
The financing is limited to 75% of the flat’s price, with a maximum tenure of 25 years.
However, Singapore PRs are not eligible for any mortgage loan financing facilities offered by private developers or HDB loan eligibility.
What is the maximum amount that Singapore PRs can
borrow for an HDB resale flat?
The maximum amount that Singapore PRs can borrow to purchase an HDB resale flat is 75% of the purchase price or the value of the flat.
This amount is subject to the person’s financial standing and credit score.
What are the key factors to consider when choosing a
mortgage for an HDB resale flat purchase?
When purchasing an HDB resale flat, it is essential to consider the interest rate, loan amount, tenure period, and early loan repayment fee.
The interest rate can vary, so it is essential to research and negotiate the best interest rate for your situation.
Rights and Responsibilities of SPRs Buying HDB Resale Flats in Singapore
What are the rights of Singapore PRs buying HDB resale
flats?
SPRs who purchase an HDB resale flat have the same rights and privileges as Singapore citizens who own an HDB resale flat.
This includes access to HDB facilities and services and racial integration policies.
SPRs are not allowed to rent out their entire HDB flat; however, they can rent out rooms within the flat in specific situations.
What are responsibilities that come with owning an HDB
resale flat as a Singapore PR?
As with any homeowner in Singapore, there is a responsibility to contribute to the community’s well-being.
Furthermore, HDB flat owners must abide by all regulations set by the government regarding the HDB resale flat.
This includes maintaining the flat in good condition and practicing good neighborly behavior in line with the community’s character and spirit.
What are the special conditions that SPRs need to be aware
of when purchasing an HDB resale flat?
SPRs who purchase an HDB resale flat may be subject to special conditions, including upgrading works, if necessary.
SPRs who inherit HDB flats from deceased parents must complete at least one year of the MOP before selling or transferring ownership.
Married couples, where one spouse is an SPR, can purchase an HDB flat with their Singaporean husband or wife.
Conclusion
In conclusion, HDB flats in Singapore provide affordable housing options for citizens, permanent residents (PRs), and non-Malaysian SPRs.
Depending on their eligibility and preferences, PRs can purchase HDB resale flats through public schemes or directly from HDB.
The eligibility criteria for PRs include holding PR status for at least three years, forming a family nucleus or using the Non-Citizen Spouse Scheme, and meeting income ceilings.
PRs can also benefit from various public schemes such as the Family Grant and Enhanced CPF Housing Grant, which offer financial assistance for home purchases.
Additionally, PRs have the option to buy new HDB flats or consider resale flats, each with its own advantages and considerations.
It’s important for PRs to carefully assess their options and consider factors such as valuation, location, eligibility conditions, and CPF housing grants when buying an HDB resale flat.
For more detailed information on these topics and to explore other aspects of HDB housing in Singapore, be sure to check out our other blog articles on the subject.
Singapore PRs can indeed purchase HDB resale flats, subject to meeting specific eligibility criteria and financing options.
As with any property purchase, homeownership involves various responsibilities and considerations that must be taken into account before making a decision.
Taking the time to research and understand the process can lead to a successful and rewarding property purchase.
Frequently Asked Questions
Can a Singapore PR buy a HDB?
Yes, a Singapore PR can buy a HDB flat, subject to certain eligibility conditions set by the HDB.
Can PRs buy new flats directly from the HDB?
Yes, PRs can buy new flats directly from the HDB, subject to certain conditions.
They can apply for new flats in non-mature estates and have to form a valid family nucleus with at least one other Singapore citizen or PR.
Can PRs buy resale HDB units?
Yes, PRs can buy resale HDB units, subject to certain conditions.
However, they are not eligible to buy executive condominiums (ECs).
Are CPF housing grants available to PRs to buy a HDB?
Yes, CPF housing grants are available to Singaporeans and PRs who are first-time flat applicants and meet certain criteria.
The grant amount varies depending on the eligibility conditions.
What are the eligibility conditions for PRs to buy a HDB flat?
The eligibility conditions for PRs to buy a HDB flat include a valid family nucleus, such as being married to a Singapore citizen or PR, or with their orphan siblings.
PRs must also not own any other residential properties in Singapore or overseas, and not have disposed of any private residential property within the 30 months before the application.
Additionally, they must not have bought more than one HDB flat previously or currently own any HDB flat or EC.
Can PRs buy a flat with another Singapore citizen or PR?
Yes, PRs can apply for a flat with another Singapore citizen or PR, provided they form a valid family nucleus.
Both parties must meet the eligibility conditions set by the HDB.
Can PRs buy a bigger resale flat?
Yes, PRs can buy a bigger resale flat, subject to the HDB resale process and eligibility conditions.
However, they must sell their previous HDB flat within six months of buying the new flat and also meet other criteria.
Can PRs buy a resale flat with their orphan siblings?
Yes, PRs can buy a resale flat with their orphan siblings, subject to certain eligibility conditions set by the HDB.
Can PRs buy a resale flat with their orphaned parents?
PRs are not eligible to buy a resale flat with their orphaned parents, as only Singaporean citizens are eligible for this option.
What are the HDB rules for PRs buying a HDB flat?
The HDB rules for PRs buying a HDB flat include having a valid family nucleus, not owning any other residential properties, meeting the income ceiling, and not having bought more than one HDB flat previously.
PRs can buy new or resale flats, subject to certain eligibility conditions set by the HDB, including their citizenship status and family nucleus makeup.
