Debated in Parliament on 22 Nov 2023.
Mr Gan Thiam Poh asked the Minister for National Development whether further assistance can be granted to potential buyers of HDB resale flats who are assessed to be eligible only for lower amounts of HDB loans and are still unable to afford HDB 2-room resale flats for their immediate housing needs.
Mr Gan Thiam Poh asked the Minister for National Development whether the Ministry has performed any reviews to assess the impact on potential buyers of HDB resale flats whose incomes cannot catch up with the rise in HDB resale flat prices.
My response to Question No 28 filed by Mr Gan Thiam Poh on assistance granted to buyers of Housing and Development Board (HDB) resale flats will also address his Question No 29 on the HDB resale market.
The HDB flat buyers may apply for a housing loan from HDB or financial institutions (FIs) if they need financing for their home purchase. HDB provides up to two housing loans at a concessionary interest rate to eligible Singapore Citizen households. To ensure flat buyers exercise prudence in their flat purchases and do not overstretch themselves financially, HDB considers factors, such as age, income, financial commitments and repayment records, in assessing a housing loan application. HDB loans are also subject to mortgage financing rules.
HDB provides generous grants to support home buyers in the resale market. To improve resale affordability for first-timers, the CPF Housing Grant was recently increased in February 2023. Together with the Enhanced CPF Housing Grant and Proximity Housing Grant (PHG), eligible first-timer families buying a resale flat can now enjoy up to $190,000 in housing grants. Second and nth-timers resale flat buyers can tap on the PHG of $20,000 to live within four kilometres of their child or parents, or $30,000 to live with their child or parents for mutual care and support, if they have not already tapped on the PHG. Typically, based on data at key collection, eight in 10 HDB flat buyers are able to service their mortgage with little to no cash outlay.
Home buyers can also buy a subsidised flat directly from HDB. Eligible first-timer buyers may receive means-tested grants of up to $80,000. Seniors aged 55 and above can buy a 2-room flexi flat on short lease from HDB.
For low-income and other vulnerable groups who have no other housing options or are in transit between longer-term housing options and have no family support, they can approach HDB for assistance for public rental or interim rental housing.
The Government regularly reviews our policies, including means-tested grants for lower- and middle-income households, to ensure that public housing remains affordable and accessible to Singaporeans.
The Government will continue to watch the property market closely and adjust our policies where necessary to ensure a stable and sustainable property market.
PAPERCUTS