Financing

SOL ACRES | ENQUIRY HOTLINE: (+65) 6100-0368 | SMS: (+65) 9877-6722

SOL ACRES | ENQUIRY HOTLINE: (+65) 6100-0368 | SMS: (+65) 9877-6722

 

 

What is an Executive Condominium?  How do you apply for an EC ?  Who is eligible to apply for it? Am i eligible for CPF housing grant criteria ?

You will be able to find more information below!

Need further clarification on the financing? Need to find out more on the current MAS regulations on EC financing?

Give us a call @ 6100-0368 now

 

Refining the Executive Condominium Housing Scheme

Recent new measures for Executive Condominium (EC) developments:

I. Reduce EC Cancellation Fees
  • Cancellation fees for ECs will be reduced from 20% to 5% of the purchase price. This will relieve the financial burden of buyers who have to cancel their EC bookings after signing the Sale & Purchase Agreement. The new cancellation fee will be applied to EC land sales which are launched on or after 9 Dec 2013, including those where the tenders have not closed.
  • The cancellation fee for ECs is currently set at 20% of the purchase price, similar to those for private housing. However, unlike buyers of private housing, buyers of EC units cannot sub-sell their units if they cannot complete their purchase, and have to pay the cancellation fee. This has especially imposed significant financial burden on young couples who subsequently are not able to proceed with their marriage and hence the EC purchase.
  • We will therefore align the cancellation fees for EC units with that for HDB Build-to-Order (BTO) flats, and reduce them from 20% to 5% of the purchase price.

 

II. Resale Levy for Second-Timer Applicants
  • Second, we will now require second-timer applicants who buy EC units directly from property developers to pay a resale levy, similar to second-timer applicants who buy BTO flats. The new requirement will be applied to EC land sales which are launched on or after 9 Dec 2013, including those where the tenders have not closed.
  • Currently, second-timer applicants who buy EC units directly from property developers benefit from the lower EC prices arising from the initial eligibility and ownership restrictions imposed on EC purchases. However, they do not need to pay a resale levy. The alignment of treatment with second-timer applicants who buy BTO flats will ensure greater parity.

 

III. Revision of Mortgage Loan Term
  • Third, the Monetary Authority of Singapore (MAS) will cap the Mortgage Servicing Ratio (MSR) for housing loans granted by financial institutions for EC units bought directly from property developers at 30% of a borrower’s gross monthly income. This is in line with earlier measures introduced by the HDB and MAS to encourage financial prudence among buyers of public housing. It discourages EC buyers from over-stretching their finances and supports an affordable and sustainable EC market.
  • The 30% MSR cap will apply to EC purchases where the Option to Purchase is granted on or after 10 Dec 2013.

 

Enquiries

For further enquiries on any of the above measures, the public can contact the HDB Sales Customer Service Line: 1800-866-3066.
Issued by: Ministry of National Development
Date 9 Dec 2013

Payment Schemes

EC buyers will have to obtain loans from banks or financial institutions as HDB does not provide housing loans for the purchase of EC. The ceiling for bank loans is as follows:

Normal Progressive Scheme
Date of Booking (EC) Loan Ceiling
Date of booking on or after 20 Feb 2010 80% of purchase price
Stage Percentage
Upon the Grant of Option to Purchase 5% (Booking Fee)
Upon Signing of the Sale & Purchase Agreement or within 9 weeks from the Option date 15%
Completion of Foundation Work 10%
Completion of Reinforced Concrete Framework 10%
Completion of Brick Walls 5%
Completion of Roofing/Ceiling 5%
Completion of Electrical Wiring, Internal Plastering, Plumbing & Installation of Door & Window Frames 5%
Completion of Car Park, Roads & Drains Serving the Housing Project 5%
Notice of Vacant Possession (TOP) 25%
On Completion Date 15%

 

Deferred Payment Scheme
Stage Percentage
Upon the Grant of Option to Purchase 5% (Booking Fee)
Upon Signing of the Sale & Purchase Agreement or within 9 weeks from the Option date 15%
Notice of Vacant Possession (TOP) 65%
On Completion Date 15%

CPF Housing Grant

EC Buyer with Average Gross Monthly Household Income up to $10,000
Type of Grant Available Amount
SC/ SC Household SC / SPR Household
CPF Housing Grant for FamilyRead more about Promoting Citizenship in HDB Households $30,000 $20,000#
Half Housing Grant

  • If you are a first-timer citizen and your spouse has previously taken a housing subsidy
$15,000

#If you are from an SC/SPR household, you can apply for the Citizen Top-Up when your SPR family takes up Singapore Citizenship or when you have an SC child.

 

EC Buyer with Average Gross Monthly Household Income from $10,001 to $11,000

From 15 Aug 2011, first-timer households with monthly income between $10,001 and $11,000 may buy new ECs with a CPF Housing Grant of $20,000. This revision is only applicable to EC projects launched for public sale on or after 15 Aug 2011.

Type of Grant Available Amount
SC/ SC Household SC / SPR Household
CPF Housing Grant for FamilyRead more about Promoting Citizenship in HDB Households $20,000 $10,000#
Half Housing Grant

  • If you are a first-timer citizen and your spouse has previously taken a housing subsidy
$10,000

#If you are from an SC/SPR household, you can apply for the Citizen Top-Up when your SPR family takes up Singapore Citizenship or when you have an SC child.

 

EC Buyer with Average Gross Monthly Household Income from $11,001 to $12,000
Type of Grant Available Amount
SC/ SC Household SC / SPR Household
CPF Housing Grant for FamilyRead more about Promoting Citizenship in HDB Households $10,000 $0#
Half Housing Grant

  • If you are a first-timer citizen and your spouse has previously taken a housing subsidy
$5,000
EC Buyer with Average Gross Monthly Household Income from $12,001 to $14,000
Type of Grant Available Amount
SC/ SC Household SC / SPR Household
CPF Housing Grant for FamilyRead more about Promoting Citizenship in HDB Households Nil Nil
Half Housing Grant

  • If you are a first-timer citizen and your spouse has previously taken a housing subsidy
Nil

#If you are from an SC/SPR household, you can apply for the Citizen Top-Up when your SPR family takes up Singapore Citizenship or when you have an SC child.

 

Eligibility Conditions

 

Criteria Detailed Description
Citizenship You are a Singapore Citizen. Your family nucleus must comprise at least another Singapore Permanent Resident or Singapore Citizen.Read more about Promoting Citizenship in HDB Households 
Age 21 years old and above
Family Nucleus You are applying with your:

  • Spouse and children (if any), or
  • Fiancé/fiancée (must be able to produce your marriage certificate, latest by the date of keys collection), or
  • Children under your legal custody, care and control (if widowed or divorced)
Household Status You and the essential family members listed in the application for purchase of the flat must not:

  • Be the owners of a flat bought direct from HDB, a DBSS flat or an Executive Condominium bought from the developer
  • Have sold a flat bought direct from HDB, a DBSS flat or an Executive Condominium bought from the developer
  • Have received the CPF Housing Grant for the purchase of an HDB resale flat
  • Have taken other forms of housing subsidy (for example, benefitted under the Selective En bloc Redevelopment Scheme, privatisation of HUDC estate etc)

 

How to Apply For CPF Housing Grant

You may apply for the CPF Housing Grant for Family when you book an EC with the developer.

What is a Deferred Payment Scheme (DPS)

A Deferred Payment Scheme is a payment scheme whereby developers allow purchasers to defer the due date for the progress payments under the standard payment scheme to a later date. The developer is required to seek the approval of the Controller of Housing before offering any form of deferred payment scheme to purchasers.

DPS basically allow buyers to defer the 80% payment till project TOP. There is no loan repayment during this period unlike Progressive Payment Scheme. However the purchase price for DPS is usually 2% – 4% higher. An example, a property price of $1m under Progressive Payment Scheme will cost $1.04m under Deferred Payment Scheme.

DPS also give 2nd timer the flexibility of managing their finances while they still need to service their existing HDB loan. The buyers just need to pay to pay 20% for the downpayment for the first 9 weeks, they do not need to manage 2 mortgage loans concurrently.

If you are an existing HDB owner and have been using your CPF to service your housing loan, your current CPF usage + accrued interest can be taken into consideration when computing the payment on whether you can use you current CPF OA for the initial 15% payment. You can check your available CPF fund and CPF usage + accrued interest under www.cpf.gov.sg.

Can I use my available CPF under OA for the initial down payment of 15%?

Need further clarification on the financing? Need to find out more on the current MAS regulations on EC financing?

Give us a call @ 6100-0368 now

Income Ceiling Exceed $14,000?

On 24 Aug 2015, the average gross monthly household income was raised from $12,000 to $14,000If your household income exceed $14,000 and still keen to get an EC unit. Give us a call at 6100-0368 and we will get back to you on how to proceed.