Chap 5 Flashcards
House can be bought with…
Equity and debt
Equity in housing
- CPF
- Cash
- Housing Grant
Minimum Cash Payment (MCP)
- Required if purchase is funded by a housing loan from FI
- Depend on whether buyer got outstanding housing loan
- Is fixed percentage of valuation
- Must be paid in cash.
- Cannot pay by loan or CPF funds.
How to calculate COV?
Purchase Price - Valuation
Why are CPF funds essential source of equity for home ownership and servicing housing loans
- cuz high property prices
If no loan…
- Reimbursed in cash if enough money in OA for downpayment
- otherwise paid option fee is used as part of ‘cash portion of downpayment’
If take HDB loan…
- can use OA sayings to make full downpayment
- in insufficient, use cash
Can take bank loan
- for 75% Loan to VL
- min use 5% of 20% downpayment
- balance 15% can be OA or cash
Housing loans can be used for what kinds of property
- HDB and resale
- EC has own specific grant
Equity : CPF Housing Grant
- Housing subsidy for HDB housing & new ECs direct from developers
- Not cash but goes into CPF OA
- Not for monthly installments (servicing of loan)
- Disbursement of CPF grant: It is no longer disbursed to flat applicants who are Singapore Citizens
- Now shared among applicants & occupiers (dc whether is PR or citizen)
CPF Housing Grants - Conditions
Mostly for 1st timer applicants (except Proximity Grant)
Who is considered a 1st-timer applicant?
- core applicants have not gotten a
subsidized housing unit. - remaining lease is more than 20 years
- applicants & listed family members cannot own or dispose private property at least 30 months before HFE application (15 for proximity)
- income ceiling based on Average Gross Monthly Household Income (except proximity)
what counts as subsidized housing unit
- A flat bought from HDB
- A resale flat from open market with CPF housing grant
- A DBSS flat developer
- An EC unit from developer
- Other forms of housing subsidy
Proximity grants are open to…
- Open to applicants besides 1st timers
- No income ceiling.
Eligibility Criteria of CPF Housing Grant
- Housing Type
- Citizenship
- Age
- Family Nucleus
- Household Status
- Monthly Household Income level
- Employment Status
- Remaining lease of flat
- Ownership / interest in property in Singapore or overseas other than HDB flat
CPF Housing Grant Available: CPF Housing Grant Available
- Enhanced Housing Grant (Families)
- Enhanced Housing Grant (Singles)
- Step-Up Housing Grant
CPF Housing Grant Available: Buying EC from developers
- Family Grant
- Half-Housing Grant
Enhanced Housing Grants - Conditions
- Available to 1st-timer households buying NEW or RESALE flats
- Based on core family nucleus formed by core applicants & core occupiers
- No restriction on flat types/location
- Remaining lease more than 20 years
For Singles’ EHG:
- Housing Type: 2-room Flexi
- 99 years (non-mature estates)
- resale
- avg gross monthly household income cannot exceed 4,500/month
ENHANCED HOUSING GRANTS (FAMILY)
- Avg gross monthly household income must not exceed $9,000/month
- at least 1 core co-applicant(s) and/ or core occupier(s) must:
- Have worked continuously for at least 12 months, 2 months before HFE letter application
- Be working at the time of HFE letter application.
What if balance lease cannot cover youngest applicant up to 95 years?
will enjoy a pro-rated EHG
How to calculate pro-rated EHG
EHG amount x (Remaining Lease of Property/ Ange of Youngest Buyer)
CPF Housing Grant for Family
- Enhanced Housing Grant
- CPF Housing Grants for Resale Flats (Families)
- Step-Up CPF Housing Grant (Families)
- Proximity Housing Grant
CPF Housing Grant for Single SC applicants
- Enhanced Housing Grant
- CPF Housing Grants for Resale Flats (Families)
- Proximity Housing Grant
HDB housing grants for Resale Flats limit now
$80,000
AHI meaning
Average Household Income
Family Grant
Eligibility based on core family nucleus.
- At least 1 must be SC and include 1 other SC or SPR
- At least 1 core applicant or core occupier is a first timer.
- Avg gross monthly household income must not exceed $14,000.
Step-Up Housing Grant
- For 2nd-timers families in subsidised 2-room flats in non-mature estates.
- Eligible for $15,000 to offset purchase price if upgrade to 3-room flat in non-mature estates.
- also 2nd-timers families in rental wanting to buy 2-room or 3-room flats, new or resale in non-mature estates.
Proximity Housing Grant (PHG) (Families)
- For couples or families who have not taken the PHG previously.
- If buying a resale flat to live with or near parents/child, can apply for PHG.
$$$ to live with parent/child
$30,000
$$$ to live near parent/child
$20,000
Proximity Housing Grant (PHG) (Families) Criteria
- 1 applicant must be SC & other must be SC or SPR
- Remaining lease: More than 20 years
