• Published Date: 29 Aug 2013

    As announced on 27 Aug 2013, two measures have been introduced to further stabilize the HDB resale market. 

    MEASURES TO FURTHER STABILISE THE HDB RESALE MARKET

    Revision of Mortgage Loan Terms
    • The maximum tenure for HDB housing loans has been reduced from 30 years to 25 years. The Mortgage Servicing Ration (MSR) limit has also been reduced from 35% to 30% of the borrower's gross monthly income.
    • The Monetary Authority of Singapore (MAS) has also reduced the maximum tenure of new housing loans and re-financing facilities granted by financial institutions for the purchase of HDB flats (including DBSS flats) from 35 years to 30 years. New loans with tenures exceeding 25 years and up to 30 years will be subject to tighter loan-to-value (LTV) limits.
     
    Requiring Singapore Permanent Resident Households to Wait Three Years
    • Singapore Permanent Residents (SPR) households are now required to wait three years from the date of obtaining SPR status, before they can buy a resale flat. SPR purchasers/owners and essential family members have to meet this requirement
    • The Important Notes of the Option to Purchase and the Terms and Conditions of Resale have been updated to reflect this new requirement.
    • This measure applies to resale application received on or after 27 Aug 2013, 5.30pm.

    The Government has also introduced four additional measures to help middle-income Singaporeans afford their first home and low-income families upgrade to larger flats, and to facilitate mutual care and support for multi-generation families.

    FOUR ADDITIONAL MEASURES TO HELP FAMILIES

    Help Middle-Income Families Afford Their First Home - Enhancement of the Special CPF Housing Grant (SHG)
    • The SHG has been enhanced to also benefit middle-income households buying new 4-room flats. Specificailly, the income ceiling for the SHG has been raised from $2,250 to $6,500. The SHG has also been extended to first time buyers of new 4-room flats (standard or premium) in non-mature estates.
    • The current SHG income ceiling for singles buying 2-room Build-To-Order (BTO) flats under the Single Singapore Citizen (SSC) Scheme has also been raised to $3,250 to enhance their ability to afford a 2-room flat.
    • This new measure will apply from the Jul 2013 BTO exercise, as the selection exercise for these flats has yet to commence.
     
     Help Low-Income Families Upgrade - Introduction of Step-Up CPF Housing Grant
    • To help families in subsidied 2-room flats in the non-mature estates upgrade to 3-room standard flats in the non-mature estates (after they have served the Minimum Occupation Period), a new Step-Up CPF Housing Grant of $15,000 has been introduced to such families.
    • Similar to AHG and the SHG, the Step-Up CPF Housing Grant will be credited into the buyer(s)' CPF Ordinary Account (OA) at the point of flat purchase, and will have to be refunded into the CPF OA upon sale of the 3-room flat. This new measure will also start from the Jul 2013 BTO exercise.
     
    Support Multi-Generation Families - Enhancement of the Multi-Generation Priority Scheme
    • The Multi-Generation Priority Scheme (MGPS) has been enhanced to allow parents to apply for a 3-room flat as well, together with their married child who applies for a 2-room or bigger flat in the same Build-To-Order (BTO) project. Previously, parents can only apply for a Studio or 2-room flat.
    • In total, about 400 pairs of new flats will be offered under the MGPS in the upcoming Sep and Nov 2013 BTO exercises. Up to 15% of the SA, 2-room and 3-rrom flat supply in a BTO project (subject to minimum of 20 units each) will be set aside for parents applying under MGPS. Correspondingly, the same number of 2-room and bigger flats will be set aside for their married children.
     
    Support Multi-Generation Families - Introduction of Three-Generation Flats
    • HDB will pilot a new type of Three-Generation (3 Gen) flats to cated to multi-generation families living under one roof. These 3Gen flats will feature four bedrooms and three bathrooms (two en-suites), with an internal floor are of about 115 square metres. The first project with about 80 units of 3Gen flats will be launched in Yishun in the Sep 2013 BTO exercise. HDB will monitor the response and calibrate the supply of 3Gen flats accordingly.
    • To be eligible for 3gen flats, applicants must form a multi-generation family comprising at least a married/courting couple and their parent(s). To ensure that these purpose-built 3Gen flats serve the target group, subletting of room(s) will not be allowed during the five-year Minimum Occupation Period (MOP). After fulfilling the MOP, these 3Gen flats can only be resold in the open market to other eligible multi-generation families.
     More information on the above measures can be obtained via the Press Release on the HDB InfoWEB. 
     
    We also wish to inform that an additional item has been included under the section ‘Resale Information’ of the HDB Resale Checklist. Salespersons will have to go through this item with the buyers and sellers accordingly. 
     
    Please disseminate the above information to your salespersons.
     
    Thank you.