Read: 1223
HDB to Lower Loan Limits for Property Market Cooling; Increase Grants for Low-Income Flat Buyers
On August 19th late at night, the Housing and Development Board HDB in conjunction with the Ministry of National Development announced changes inted to cool down Singapore's overheated property market. These measures are part of the fourth set implemented since December 2021.
As a result of these adjustments, the maximum loan amount that home buyers can secure from HDB to purchase their flats will be reduced starting from August 20th, ming to temper demand and encourage prudent borrowing practices.
Furthermore, additional financial support is offered for lower-to-middle income flat purchasers in the form of increased Enhanced CPF Housing Grant EHG. The new maximum grant amount stands at $120,000 for families compared to the previous limit of $80,000; while it rises from $40,000 to $60,000 for singles.
The HDB loan-to-value ratio has been lowered from 80 to 75, aligning it with mortgages granted by financial institutions that remn unchanged at 75. This restriction applies only to full applications received on or after August 20th and launches of build-to-order flats beginning in October onwards.
According to official HDB data, resale prices for flats have been consistently increasing since the second quarter of 2020. In July alone, Margaret Drive saw a record price of $1.726 million for an apartment set.
The Government attributes this increase to strong demand combined with some supply tightness due to fewer units becoming eligible for sale during their minimum occupation period this year.
Hence, lowering HDB loan limits is inted to stabilize the resale market and promote responsible borrowing practices among buyers.
Eligible first-time families buying a resale flat could potentially receive up to $230,000 in housing grants including:
The revised EHG of up to $120,000
A CPF Housing Grant up to $80,000
Proximity Housing Grant PHG of up to $30,000
Singles could receive up to $115,000 in housing grants with the following:
Revised EHG of up to $60,000
CPF Housing Grant up to $20,000
PHG of up to $20,000
Families with an average monthly income below SGD$1,500 are eligible for the maximum grant amount.
For those who have received HDB Flat Eligibility letters which outline their flat purchasing eligibility and financing options, there is no need to apply agn as these will be updated.
Those whose resale transactions are ping completion can automatically receive additional grants without needing to apply.
It is noted that eight out of ten first-time families who purchased resale flats in 2023 only used up to a quarter of their monthly income for servicing HDB loans. This was mnly facilitated by their Central Provident Fund, requiring minimal or no cash outlay.
The Government emphasizes its commitment towards mntning affordable and accessible public housing for Singaporeans and will continue monitoring the property market closely.
These modifications m to ensure stability and sustnability in the property sector while promoting responsible borrowing practices among buyers.
For detled information on these changes, please refer to The Strts Times article avlable at insert link here.
This is a summary of the translated into English for clarity. Detls such as specific dates, amounts, and links have been left intact to mntn accuracy.
This article is reproduced from: https://www.asiaone.com/singapore/hdb-loan-limits-be-lowered-cool-property-market-larger-grants-lower-income-flat-buyers
Please indicate when reprinting from: https://www.669t.com/loan_limit/HDB_property_market_cooling_measures.html
HDB Loan Limits Reduced for Property Cooling Enhanced CPF Housing Grant Increases Singapores Overheated Property Market Adjustments Lower Income Flat Buyers Additional Support 75 Maximum Loan to Value Ratio Implemented Government Stabilizes Resale Flat Prices