- HDB resale market cooling measures announced for Singapore.
- HDB Loan-to-Value limit for housing loans reduced to 75%.
- Enhanced CPF Housing Grant increased for first-time buyers.
Singapore’s government rolls out new measures to cool the HDB resale market and help first-time home buyers.
Key Terms Simplified
- HDB: The government agency that builds and sells homes in Singapore.
- Loan-to-Value (LTV): The amount of money you can borrow compared to the value of your home.
- Enhanced CPF Housing Grant (EHG): Money given by the government to help people buy their first home.
New Housing Measures Announced
On 19 August 2024, Singapore’s government announced new rules for buying HDB flats.
These rules aim to cool down the hot resale market and help first-time buyers.
The changes will start on 20 August 2024, at 12.00 am.
Prime Minister Lawrence Wong shared the news about increased grants for new and resale flats.
Changes to HDB Loan for Homes
The government is changing how much people can borrow for HDB loan.
The HDB Loan-to-Value (LTV) limit will go down from 80% to 75%.
This means buyers need to pay more money upfront when buying a flat.
The change aims to make people borrow money more carefully.
| HDB Loan Type | Old LTV Limit | New LTV Limit |
|---|---|---|
| HDB Housing Loan | 80% | 75% |
More Help for First-Time Buyers
The government is giving more money to help first-time buyers.
They are increasing the Enhanced CPF Housing Grant (EHG).
Families can now get up to S$120,000 in grants, up from S$80,000 before.
Singles can get up to S$60,000, which is S$20,000 more than before.
Total Grants Available
- Families buying new flats: Up to S$120,000
- Families buying resale flats: Up to S$230,000
- Singles buying new flats: Up to S$60,000
- Singles buying resale flats: Up to S$115,000
Why These Changes?
The government wants to keep homes affordable for Singaporeans.
HDB resale prices have been going up fast.
In 2023, prices went up by 4.9%.
In the first half of 2024, they went up by over 4%.
According to the Ministry of National Development (MND), “These measures further encourage financial prudence and promote a stable and sustainable market.”
Who Has Benefited So Far?
Since the EHG started, it has helped many Singaporeans.
About 72,300 first-timer households have gotten grants.
The total amount given out is over S$2 billion.
What This Means for Home Buyers
First-time buyers will get more help to buy their homes.
But they might need to save more money before buying.
The changes might slow down the rising prices of resale flats.
As stated by MND, “To further support first-time home buyers, the maximum quantum of EHG grants will be increased…”
Government’s Promise
The government says it wants to keep homes affordable for all Singaporeans.
They will keep watching the market and make changes if needed.
MND emphasised, “The Government remains committed to keep public housing affordable and accessible for Singaporeans.”
These new rules aim to help more Singaporeans buy their first home while keeping the housing market stable.
