The recent years has seen policy changes in a quest to help first-time house buyers acquire homes. Notably, September 11, dawned with great news for the Singapore’s aspiring homeowners, thanks to policy changes on the income ceiling and the HBD grants. The policy changes help first-time homebuyers in understanding the simplified grants type available for HBD resale and BTO flats. The following are the notable policy changes for first-time house buyers in Singapore.
Rise in the Income Ceiling for First-time Home Owners
Acquisition of a BTO flat before September 11, required first-time homeowners to have a twelve thousand dollars average monthly income. Currently, the monthly household income ceiling has been increased to fourteen thousand dollars, hence giving more first-time house buyers a chance to purchase BTO flats. Additionally, Executive Condominium (EC) income ceiling monthly household has increased from the previous fourteen thousand dollars to the current sixteen thousand dollars.
Higher and Simplified Grants through Enhanced CPF Housing Grants
Earlier, the HBD grants were confusing to many since they had the Additional Housing Grant (AHD) for BTO and resale, the Special CPF Housing Grant (SHG) for BTO only, as well as Family Grant for resale only. The current policy groups both the SHG and AHG as one grant known as Enhanced CPF Housing Grant. Notably, first-time homeowners will benefit from more financial support relative to their average monthly income, thanks to the new Enhanced CPF Housing Grant. The offer is regardless of whether they purchase a resale flat or a BTO.
Higher Income Ceiling to Qualify for Family Grant
In Singapore, first-time HBD resale flats buyers require to pay the market price for their flats. On the contrary, subsidized prices are offered to BTO buyers by the HBD when acquiring flats. Notably, the market price is determined by what sellers expect and what buyers are willing to pay. Currently, first-time buyers with an average monthly household income of fewer than fourteen thousand dollars of EC and resale flats qualify for the Family Grant.
Additional Benefits for Buyers of Resale Flats
In the new policy, the SHG which was offered to first-time homeowners for the acquisition of a BTO flat of four or fewer rooms has been included under the Enhanced CPF Housing Grant. Therefore, first-time house buyers of resale flats also qualify for the additional grant subsidies. Notably, BTO, as well as flat resale buyers, qualify for the Enhanced CPF Housing Grant.
With the new policies, owning a house is easier for first-time house buyers. Higher-income ceiling and more HBD grants account for the significant changes of policies by the HBD. Additionally, a housing portal will be launched by the HBD to allow HBD flats’ sellers and buyers transact on a single platform.