More aid for first-time flat buyers

Ang Li Shan and fiancé Alex Chan enjoyed a couple of good news on their search to buy a flat.

Before the Budget last month, they seek advice to the Housing Board on buying a resale flat with three rooms. The couple was amazed knowing that if they got a flat near to Ms. Ang’s parents’, they would have the chance of getting a $40,000 worth of HDB grant.

Another good news is that as first-time flat buyers with less than $5,000 income, they could get an extra grant worth $10,000. An income ceiling of $4,000 before had ruled them out.

“The raising of the income ceiling is great news,” Ms. Ang said. “Given the uncertain times, we want to keep our loans as low as possible.”

Several new features were also added in the Budget for the first-time HDB flat buyers. They have included tweaks for the Additional CPF Housing Grant (AHG), with a maximum amount now increased by $10,000. Buyers must be employed continuously for at least a year to avail this. The income ceiling will be increased to $5,000 per month.

Home owners with financial problems can also suspend their monthly loan repayments for a maximum of six months and also reduce the amount of monthly repayment.

The new short-term housing rental scheme will allow home owners to have their HDB flats sold to purchase new and smaller ones. While the new flats are being built, they can stay in rental flats with prices less than the market rate.

The government will increase the supply of two-room and three-room flats, as well as studio apartments in addition to 4,800 units available.

Starting next month, senior citizens in Singapore can also enjoy the Lease Buyback Scheme, allowing them to move in three-room flats or smaller ones to sell back their lease’s tail end to HDB and still remain in their flats.