Hi,
There are few parts in your posting, I'll try to answer them one-by-one:
(1) Getting "HDB balance flat (5-rm) too soon?
I'm only can guess, you mean it is too early for them to apply for SBF. Thus considering other mode of purchase; such as resale flats.
(2) AHG, I guess your're referring to Additional Housing Grant. This has nothing to do with types of flat.
New flats (BTO/SBF) or resale flat: You can only benefit from this if household (both) income less than $5,000.
You have to provide document to prove last 12 months income. Yes, you need to be employed for at least last 12 months.
(3) SHG, Special CPF Housing Grant. This is only applicable to 2/3/4-room flat in non-mature estate.
Same requirement as AHG, show proof of employment/income for the last 12 months.
Household income ceiling must not more than $8,500.
(4) Apply for grant for EC fulfilled MOP.
There are no grants available for EC which fulfilled MOP, as they are considered as private for SC & PR only.
Conclusion:
You wish to use grant to assist young couple in purchasing an accomodation, but at least a 5-room (BTO/SBF), which you already determine only AHG is available for this type.
New flats (BTO/SBF): They will need at least 10% of CPF OA saving of purchasing price in order to apply, otherwise can apply for AHG to assist in the 10% downpayment.
However, since need to provide proof of employment for 12 months in order to be eligible. This young couple could not fulfill this condition.
Cash needed for the purchase without grants are as follow, using $550k as the purchasing price as example:
(1) Booking of flat: Option fee ($2,000 for 4-room & more)
(2) Signing S&P:
(a) Stamp duty (3%-$5,400) = $11,100
(b) legal fees = $ 1,150
(c) Downpayment (10% of purchase price) = $55,000
(3) Key collection:
(a) HPS = $585.90
(b) Fire insurance = $6.60
(c) Balance of purchase price= in cash or get approval from CPF/financial institute to loan the amount. ($495,000)
You will also need to apply for HLE letter from HDB in order to get HDB to assess their financial status before knowing whether they can get HDB loan.
Note:
You may consider resale flat in this case, as they are eligible to "Family Grant" of $40,000 for 5-room or bigger + "Proximity Grant" of $20,000, and still eligible for AHG.
All these grants can act as 10% downpayment for their purchase.
Hope the above answer to your main concerns, but if there are more queries, please feel free to contact me at
90110636
, or email: ling.ck7@gmail.com if more information is needed.
I'll be glad to assist.
Best regards
Ling CK
90110636
ling.ck7@gmail.com
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Why no SHG (when all income limit is in order) for a 5 room when an additional room means In-laws may be invited to stay-in longer period of say a dozen year? when the young couple become first-time parents. And the older sets of couples do not wish to sell away their whatever properties. It still takes your own flesh and blood folks to help each other first then the kampong. Only when you help your own flesh and blood first, then got time and money to help kampong :)