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11/11/2005- Revised Housing Loan Limit and Downpayment for Purchase of HDB flats
As announced by the Minister (ND) in Parliament on 19 July 2005, HDB will revise upwards the housing loan limit for HDB concessionary loans with immediate effect, in tandem with the upward adjustment of mortgage financing limit by banks and financial institutions.
Revisions to Housing Loans Guidelines
The Government has announced the following revisions to the housing loans guidelines for banks and financial institutions:
(a) Financing limit
Loan-To-Value Limit to increase from 80% to 90% of Value1 of Property.
(b) Cash Requirement
Lowered from 10% to 5% of Value.
Housing Loans From HDB for Purchase of HDB Flats
In line with these revisions, HDB will also revise its guidelines for granting HDB housing loan as follows:
(a) Downpayment for Purchase of Flats
The downpayment will be reduced from 20% to 10% of the Value. The 10% downpayment is fully payable with CPF monies as per existing policy.
(b) Housing Loan Ceiling
The housing loan ceiling will be raised from 80% to 90% of the Value, subject to credit assessment and full utilisation of CPF monies before loan disbursement.
Housing Loans From Banks for Purchase of HDB Flats
As announced, under the revised housing loans guidelines, HDB flat buyers will pay a lower 10% downpayment and can obtain a mortgage loan up to the 90% financing limit from banks
and financial institutions.
The original plan was for the 10% cash downpayment for HDB flats financed with bank loans to be phased in over a period of 5 years, with a 2% increase each year starting from 1 Jan 2004. Currently, the cash portion of the downpayment is 4%. Under the revised guidelines, buyers of HDB flats who are taking bank loans will eventually have to pay 5% downpayment in cash. The last 1% increase will take effect from 1 Jan 2006.
Staggered Downpayment Scheme
Currently, young couples who book a flat from HDB that is under construction can qualify for HDB's Staggered Downpayment Scheme. Under the Scheme, they can pay the downpayment in two instalments - the first 10% upon signing the Agreement for Lease for the flat, and the remaining 10% upon taking possession of the flat. With the downpayment for HDB flats now reduced to 10%, young couples will only need to pay a 5% downpayment when signing the Agreement for Lease, and the remaining 5% upon taking possession of the flat.
Implementation
These revised policies will take effect from 19 Jul 2005. The cut-off date for purchase of new and resale HDB flats, and transfer of ownership of existing flats will be based on the following:
| Mode |
Cut-off Dates |
| Purchase of New Flats |
Date of booking flat |
| Purchase of Resale Flats |
Date of resale application received by HDB |
| Transfer of Ownership of Flats |
Date of transfer application received by HDB |
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25/11/2005- Rehousing Benefits For Eligible Lessees Aa Sites Announced For Seletive En Bloc Redevelopment Scheme
(a) Compensation for their existing flats based on the prevailing market value;
(b) Assured allocation of new flats at the designated replacement site if eligible;
(c) Purchase of replacement flats at subsidized prices frozen as at the date of SERS announcement;
(d) 20% price discount (up to $11,000, $22,000 and $30,000 for singles, joint singles and families respectively), if eligible, for the purchase of the replacement flats;
(e) Option to sell the rehousing benefits to eligible buyers;
(f) Exemption from the payment of resale levy for the existing flats;
(g) Concessionary mortgage loan for the replacement flats for eligible SERS lessees, subject to credit assessment; and
(h) A comprehensive financial package to ease the cash flow for purchase of the replacement flats.
Note:
Eligible SERS lessees who do not wish to take up the new replacement flats can choose to sell their existing flats with the rehousing benefits to buyers who are eligible to buy flats directly from HDB. With the sale proceeds, which will include a premium for the rehousing benefits, they can then buy a resale flat in their preferred location.
RELOCATION BENEFITS FOR ELIGIBLE RENTAL TENANTS UNDER PUBLIC RENTAL SCHEME
Priority Allocation of Home Ownership Flats
Tenants will be given priority allocation of:
· New flats in designated SERS replacement sites
· New flats under Balloting Exercise as and when launched
· New flats under Build-To-Order System as and when launched
Inclusion of Off-site Kin/Relatives for Joint Purchase of Flats
Tenants staying alone will be allowed to include off-site kin (i.e. children, spouse or parent/s) as co-applicant(s) to form a family nucleus to buy a HDB flat.
Tenants with proper family nucleus may include off-site relatives (i.e. grandchildren, nephews and nieces) as co-lessees to help finance and buy a HDB flat.
Tenancy Discount
Tenants who are first-timers and opt to buy flats directly from HDB may be granted tenancy discount of 3% off the purchase price per year of tenancy, up to 30% or $15,000, whichever is lower and subject to the prevailing policy at the time of purchase.
Waiver of Fees
Option fee for tenants who are eligible for HDB concessionary interest rate housing loan and buying 4-room or smaller flats will be waived ($2,000 for 4-room flats, $1,000 for 3-room flats).
Temporary Accommodation
Tenants who have booked new home ownership flats under construction will be allocated temporary rental flats and are required to move out from the affected rental block by the date stated in their relocation letters.
Priority Allocation of Rental Flats
Tenants who wish to continue to rent flats will be given priority allocation of alternative rental flats.
Removal Allowance
Tenants will be given a $1,000 removal allowance.
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28/11/2005- Setting Up of SISV Appeals Channel for reviewing market valuations of resale HDB flats
1. Since 1 Apr 05, all resale HDB flat transactions involving a bank loan and the use of CPF savings must be accompanied by a valuation report from a private valuer assigned by HDB. Flat buyers/sellers who are dissatisfied with the valuation can either appeal direct to the private valuer for a review, or submit request for a new valuation which would be provided by
a different valuer assigned by HDB.
2. With immediate effect, flat buyers/sellers who wish to appeal against these valuations can also submit their request for a final review to the Singapore Institute of Surveyors and Valuers (SISV). The SISV is a professional body representing valuers, land surveyors, quantity surveyors, building surveyors, property managers, property consultants and real estate agents in Singapore.
3. SISV will appoint a panel of 3 licensed valuers to review each valuation. Once the SISV panel has decided on the market valuation of the flat, its decision will be final and will supersede previous valuations. A certificate of valuation will also be issued for flat buyers to use when applying for mortgage financing and withdrawal of CPF monies in the purchase of the flat. During the three-month period following SISV's review, no other flat valuations can be used and HDB will not accept new requests for valuation of the same flat.
4. Each application to SISV will be charged a fee of $177.50 (inclusive of GST). Duplicate copies of the certificate of valuation can be purchased from SISV at $100 each.
Increase in Minimum Cash payment for Purchase of HDB Flat with Bank
Loans with effect from 1 Jan 2006
5. HDB flat buyers who are taking a mortgage loan from banks/financial institutions are reminded that they will have to pay a minimum 5% cash payment for their flat purchase with effect from 1 Jan 2006. The current minimum cash payment is 4%. The 1% increase will complete the phasing-in of the minimum cash payment requirement, which had started at 2% on 1 Jan 2004.
6. The "cut-off" for the phasing-in of the cash payment for the various HDB flat transactions is shown below:
| Transactions |
Application of Phased-In Cash
Payment |
| Purchase of New Flats under the Walk-In-Selection, Balloting
Exercise and Build-To-Order System |
Date of booking of new flat |
| Purchase of Resale Flats |
Date of submission of resale application |
| Transfer of Flat Ownership |
Date of submission of transfer application |
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