SINGAPORE: The Ministry of National Development ( MND ) and Housing and Development Board ( HDB) on Monday ( Aug 19 ) announced a set of measures to cool the resale market and to provide more support for lower-to-middle income first-time home buyers.
Here is the whole statement:
With effect from Aug 20, 2024, 12am, the Loan-to-Value ( LTV ) limit for HDB loans will be lowered from 80 per cent to 75 per cent. This brings the LTV cap for HDB loans to the same level as the 75 % LTV cap for loans granted by financial institutions.
The Government will increase the Enhanced CPF Housing Grant ( EHG ) quantum for both new and resale flats in order to support first-time home buyers, as Prime Minister Lawrence Wong announced at the National Day Rally 2024. The EHG may become increased:
- By up to S$ 40, 000 for ready first-timer people, from the current maximum award amount of S$ 80, 000 to S$ 120, 000, and
- By up to S$ 20, 000 for qualified first-timer songs, from the current maximum offer number of S$ 40, 000 to S$ 60, 000.
Given the sustained, strong, broad-based desire for HDB selling flats, these measures will help cool the business and promote prudent borrowing, so making cover more economical for lower-to-middle earnings first-time home buyers.
Lowering the LTV Limit for HDB Housing Money
The Government carefully monitors the resale industry for HDB. Earlier rounds of cooling measures and the ramped-up Build-To-Order ( BTO ) flat supply have helped to moderate the increase of HDB resale prices. Housing sale prices grew by 4.9 per share in 2023, down considerably from 10.4 per share in 2022. Selling rates, however, increased by more than 4 % in the first quarter of 2024. This was driven by solid, broad-based desire, coupled with some offer tension, as fewer cottages reached their Minimum Occupation Period this time.
The LTV cap for HDB casing loans may be lowered from 80 to 75 % to further stabilize the HDB resale market and encourage straight buyers to use wisely. Resale requests received by HDB on or after August 20, 2024, as well as BTO requests for the October 2024 BTO training onward may be subject to the revised HDB LTV cap. Financial institutions ‘ LTV cap has remained constant at 75 % for money.
First-time house buyers, particularly lower-income families, will be less affected by the lower LTV control, as they receive substantial accommodation offers. To provide further help to lower-to-middle revenue first-time house buyers, we may also increase the EHG.
Increased CPF Housing Grant for First-Time Buyers Purchasing New and Repossessed Apartments
The EHG, which was introduced in September 2019, is a means-tested give that offers more support to households with lower-to-miditerm incomes who are purchasing new or resale apartments as their first home. Now, ready first-timer families and singles buying a level may receive up to S$ 80, 000 and S$ 40, 000 in EHG, both. With no restrictions on the type of straight and place, the EHG sum is distributed according to home income. The EHG is liberal, but that lower-income families receive more help for their home equity dreams.
Since its launch, on 72, 300 first-timer communities have benefitted from EHG, equivalent to more than S$ 2 billion. In the first six weeks of 2024, about S$ 204 million in EHG was disbursed to around 7, 000 first-timer homes. 4 out of 10 of the 72,300 first-timer households who have received the EHG so far purchased resale apartments, while the remaining 6 in 10 purchased a flat from HDB across the various sales channels ( BTO, Sale of Balance Flats, and open booking of flats ) ).
To further help first-time home buyers, the greatest particle of EHG offers may be increased to S$ 120, 000 for people, and S$ 60, 000 for songs. Depending on the regular household income, the increase may range from S$ 5, 000 to S$ 40, 000 for people and from S$ 2, 500 to S$ 20, 000 for songs, with higher rises for lower-income communities who require more help. See Annex A for the details.
First-time home buyers will benefit more from the revised EHG, along with the current CPF Housing Grant and Proximity Housing Grant ( PHG), as well as the revised EHG, which will assist them in purchasing apartments.
- New Flats: Eligible first-timer families who buy a new flat will receive up to S$ 120, 000 in EHG, on top of the significant market discount in the flat price, while singles will receive up to S$ 60, 000 in EHG.
- Resale Flats: Eligible first-timer families who buy a resale flat will receive up to S$ 230, 000 in housing grants, comprising the revised EHG of up to S$ 120, 000, a CPF Housing Grant of up to S$ 80, 000 and a PHG of up to S$ 30, 000. For eligible first-timer singles who buy a resale flat, they can receive up to S$ 115, 000 in housing grants comprising the revised EHG of up to S$ 60, 000, a CPF Housing Grant of up to S$ 40, 000 and a PHG of up to S$ 15, 000.