A Guide to Singapore HDB Resale Flats: Eligibility and Grants

Category : Singapore HDB Resale Flats | Sub Category : Eligibility and Grants Posted on 2023-07-07 21:24:53

A Guide to Singapore HDB Resale Flats: Eligibility and Grants

Introduction
Singapore's Housing Development Board (HDB) resale flats provide a viable option for Singaporeans looking for affordable housing solutions. In this blog post, we will delve into the eligibility criteria for purchasing a resale flat and explore the various grants available to assist potential buyers in their homeownership journey.

Eligibility Criteria for Purchasing a Resale Flat
To be eligible for purchasing a Singapore HDB resale flat, individuals must meet the following criteria:

1. Citizenship: At least one applicant must be a Singapore citizen or a Singapore Permanent Resident (PR).

2. Family Nucleus: The applicant should form a family nucleus, which includes:
a) A married couple (or intending to marry) with children (if any).
b) A divorced or widowed individual with children (if any).
c) An orphan with siblings who are also applying for an HDB flat.
d) A single citizen aged 35 years or older.

3. Income Ceiling: The average gross monthly income of all applicants should not exceed the income ceiling, which is currently set at $14,000.

4. Ownership/Ownership Restriction: First-time buyers can only purchase a resale flat if they have not received any housing subsidy before. Additionally, the buyers are required to fulfill the Minimum Occupation Period (MOP) of 5 years before they are allowed to sell or rent out the flat.

Grants Available for Resale Flat Buyers
To make homeownership more affordable, the Singapore government offers several grants to assist resale flat buyers:

1. Enhanced CPF Housing Grant (EHG): The EHG replaces the previous Additional CPF Housing Grant (AHG) and Special CPF Housing Grant (SHG). It provides up to $80,000 in grants for eligible first-time applicants, based on their income and the size of the flat they are purchasing.

2. Proximity Housing Grant (PHG): The PHG encourages Singaporeans to live near their parents or married child. Families who purchase a resale flat within 4 kilometers of their parents or married child's residence can receive up to $30,000 in grants.

3. Step-Up CPF Housing Grant (SHG): This grant aims to assist lower-income families in moving from a 2-room subsidized flat to a larger resale flat. Eligible families can receive up to $75,000 in grants.

4. Family Grant: Eligible resale flat buyers who have at least one child below 18 years old can receive a Family Grant of up to $50,000.

5. Proximity Housing Grant (PHG) for Singles: Singles who purchase a resale flat within 4 kilometers of their parents' residence can receive up to $15,000 in grants.

Applying for Grants and Purchasing a Resale Flat
To apply for grants and purchase a resale flat, potential buyers need to follow these steps:

1. Register Intent to Buy: Register your interest to buy a resale flat on the HDB Resale Portal.

2. HDB Loan Eligibility (HLE) Letter: Obtain the HLE letter, which indicates your eligibility for housing loans and the maximum loan amount.

3. Browsing and Viewing: Start browsing the resale market and arrange viewings for the shortlisted flats.

4. Submit Option to Purchase (OTP): Once you've found a suitable flat, submit the OTP and pay the option fee to the seller.

5. Engaging a Housing Agent: Engage a qualified housing agent to facilitate the transaction process.

6. Applying for Grants and Housing Loan: Submit grant applications and initiate the housing loan process using the HLE letter.

7. Complete Resale Flat Purchase: Complete the resale flat purchase, including the payment of the down payment and stamp duties.

Conclusion
Owning a Singapore HDB resale flat is a significant milestone for many Singaporeans. By understanding the eligibility criteria and grants available, potential buyers can navigate the process with greater ease. Whether you are a first-time buyer or looking to upgrade your current housing situation, exploring the resale market and leveraging the various grants can help make homeownership more attainable.