With my income, I cannot afford to buy a flat. Can HDB let me have a rental flat?
HDB’s public rental flats are for needy citizen households who cannot afford to buy a flat and have no other housing options or family support.
The rents of these flats are heavily subsidised, to help those in need. You may apply for one if you meet this set of eligibility criteria.
Helping rental tenants progress onto home ownership
In the long term, homeownership is a better solution for families than rental, because it provides a greater sense of stability and gives families an asset. They will also be able to use their CPF monies to pay for a flat of their own, instead of paying rental in cash.
There are several assistance measures to encourage our rental flat tenants to progress onto home ownership when they are ready. Our measures include:
With the help of CPF Housing Grants of up to $80,000, their first flat from HDB will become even more affordable.
Under the Fresh Start Housing Scheme, they can enjoy a Fresh Start Housing Grant of up to $35,000 to buy a 2-room Flexi flat with shorter lease.
They will be given priority in sales exercises, under the Tenants’ Priority Scheme, which will set aside up to 10% of available 2-room Flexi and 3-room BTO/ SBF flats.
How we help rental tenants become home owners
Mr and Mrs Tan, aged 40, are second-timers. They are living with their child, aged 12, in a 2-room public rental flat. Mr Tan is the sole breadwinner, earning $1,400. They are currently paying monthly rental of $240 in cash.
If they apply for a 2-room flexi flat with 60-year lease under Fresh Start Housing Scheme (Fresh Start), they may obtain up to $35,000 of housing grants. Assuming they have cash/ CPF savings of $35,000, they would need a housing loan of about $65,800, which they will be able to qualify for with their household income. The monthly mortgage instalment of $300, over a loan tenure of 25 years, can be paid through CPF contribution of $290. The remaining $10 can be paid by cash, which is less than the current rental amount. Find out more about Fresh Start.