Info on Grants/Subsidies Available For First Timer

[iridiot]

if you are eligible for 300k loan, and you can get 50k grant, meaning you can afford to buy a 350k flat, should be no.2 of your ans

the CPF housing grant could be use for the initial 10% payment and if there's left over it will be used to deduct the remaining value of the flat, the grant cannot be use for the amount of cash-over-valuation, that COV must use cash...so if you can better buy resale flat at its valuation price

if the grant is not enuff for the initial payment you can use you CPF to top up the rest, if cpf also not enuff den you can use cash.

anyway the grant will be utilized fully for the initial payment or deducting the remaining value of the flat after the 10% initial payment, by right you should not have any grant leftover

if you had alot of cash, you can jolly well use it to buy your flat so you can loan minimum sum from HDB and mthly installment should try to be within your CPF mthly contribution

just a little comment , do dump your cash into your flat only if you have no other investment vehicles available.

e.g. , if you have something that can get you 4 % interest per annum , that financial instrument would benefit you more ( 4 % per annum earned from it instead of saving interest of 2.5 % per annum or whatever is the cpf loan rate + 0.1 % )

if you have no interest or time to invest in anything else , then dump it all except for some backup savings to finish servicing your loan as a penny saved is a penny earned

 

[yeowenzheng]

just a little comment , do dump your cash into your flat only if you have no other investment vehicles available.

e.g. , if you have something that can get you 4 % interest per annum , that financial instrument would benefit you more ( 4 % per annum earned from it instead of saving interest of 2.5 % per annum or whatever is the cpf loan rate + 0.1 % )

if you have no interest or time to invest in anything else , then dump it all except for some backup savings to finish servicing your loan as a penny saved is a penny earned

yeah that seems to be the more appropriate way to spend your cash

 

[Changjiang7]

i am a bit confused.

If i am a first timer and choose a flat near parents.
does it mean i will have 70k (40+30) grant or only 40k grant?

 

[alamak]

i am a bit confused.

If i am a first timer and choose a flat near parents.
does it mean i will have 70k (40+30) grant or only 40k grant?

only have40k

 

[ahkiam82]

i am a bit confused.

If i am a first timer and choose a flat near parents.
does it mean i will have 70k (40+30) grant or only 40k grant?

1st timer = 40k
Near parents = 10k

 

[vinz]

1st timer = 40k
Near parents = 10k

Wrong.

a) 1st timer = 30k
b) 1st timer near parents = 40k (30k 1st timer + 10k near parents)

Its either you take (a) or (b).
Not both.

If taking (b), please note the parents cant and cannot sell their existing flat and buy another flat in another estate for next 5yrs.

They can sell and buy another flat in same estate.
or
They can sell and dont buy. (move in with children)

 

[ahkiam82]

The Additional CPF Housing Grant (AHG) Scheme introduced in March 2006 is meant to help citizen families with a steady household income to buy their first subsidised HDB flat. The AHG can be used for the purchase of new, resale and DBSS flats. It is an additional subsidy over and above the regular market subsidy and CPF Housing Grant that new and resale flat buyers enjoy respectively. The scheme was enhanced in August 2007, with the income ceiling and the grant amount raised - to help more households own their first flat.

On 6 February 2009, the AHG Scheme was further enhanced, to make owning an HDB home easier for more citizen households - especially the lower-income families.


The enhancements are as follows:
• Maximum AHG amount is increased from $30,000 to $40,000• Income ceiling is raised from $4,000 to $5,000
• Continuous working period preceding the flat application is reduced from two years to one year

 

[yellowpenred]

Isn't AHG and 1st timer grant a totally different issue?

People ask about 1st timer grant (whether 30k + 40k) , u talk about AHG (40k).

Cow head doesn't match Horse mouth.

 

[ahkiam82]

If i dont know , u know huh ....... busybody .......

 

[yellowpenred]

If you don't know , then don't go and copy and paste one whole piece of information and dump in for everyone to see, as if that prove you are correct, but in the end it just prove you are wrong.

 

[ahkiam82]

WTH ...............

 

[sunsetbay]

Isn't AHG and 1st timer grant a totally different issue?

People ask about 1st timer grant (whether 30k + 40k) , u talk about AHG (40k).

Cow head doesn't match Horse mouth.

both "1st timer" grant & AHG are cpf grants. a resale flat buyer that eligible for AHG, would had applied "1st timer" grant before thinking of applying AHG. it shouldn't be treated as a different issue.

chill-out bro~

 

[vinz]

I got a question regarding grants:

Is the grant used to reduce your CPF loan ONLY or reduce the total amount needed to buy a flat?

1) For example.. If I'm ELIGIBLE for 300K loan, and 50K grants, Does it mean that HDB cut off 50K from the loan amount (meaning 250K loan) and I pay cash for the rest?

OR

2) The grant amount (50K) is deducted off the total sale price of the flat and you can still take up 300K loan.

Another way of understanding my question is:
If the flat costs 400K, Can I use 50K cash, 50K grant and 300K loan?
Or will HDB force me to use the grant as part o the loan, ie. 100K cash and 250K loan (50K granted)?

I hope ya guys understand ma question.. cheers.

1st, the grant is either 30k 1st timer OR 40k 1st timer near parent. (where did your 50k come from? AHG?)
_____________________________

Assume 40k grant.

House cost 400k (assume valuation is 400k for resale flat),
Loan amount = 400k - 40k = 360k

If you want to pay another 50k using cash,
Loan amount = 400k - 40k - 50k cash = 290k

No need to come up with cash, the 360k (or 290k) is your loan amount (assuming you are eligible for this amount). Above is simple calculation, didn't add on the stamp fees, legal fees, insurance etc.
______________________________

Pls note the grant is always use to deduct from the valuation price (resale flat) and not the COV.
Any COV (resale flat) must be payable using cash from your own pocket.

 

[killerer]

can we use CPF to offset the cost instead of cash? so instead of i downplayment of 10%, i downplayment of 15% and take up loan to pay for the rest?

eg

House cost 400k (assume valuation is 400k for resale flat)
Grant 40k
CPF OA 80k

i can use all 80k (+40k TOTAL 120k) to downplayment for the housing and pay the rest thru loan (=280k)?

my goal is to make the interest as little as possible.

 

[vinz]

You are correct, that is exactly how it works.

 

[p00p00]

some questions here i wanna ask...

i started work in Aug 08 as a temp staff getting ard 1.2k/mth for 3 mths. Next i drew 2.6k/mth for 6 mths and currently getting 2.8k.

1) Do they consider me as being 'continuously employed for one year'? am i eligible to apply for a flat (BTO)?

2) Also, my gf is currently still studying. Hence is my average household income {(1200 x 3)+(2600 x 6)+(2800 x 3)} / 12 which is equal to 2300? i understand that my current salary will allow me a $25k AHG. if they calculate my average annual income as above, my monthly salary will be 2300 which allows me to get $30k of grant?

3) Anyone can shed some light on the payment timeline of getting a HDB flat? downpayment 10% is after booking of flat which is shortly after application rite? is there any other cash outlays and approximate time period to the payments?

4) Say the BTO takes 5 years to complete. At which point of time will they assess me on the mortgage available for me to loan? will mortgage installments will start to kick in after you get the flat (eg:5yrs later?) This is cos im afraid that they will not loan too much to me if they assess me at point of application (since my gf is still studying). After my gf grads and both of us having worked for 5yrs, im quite confident we can afford a much larger mortgage loan.

thanks!!

 

[KopRulez]

Need some answers

Need some answers from my questions, please.

Currently I bought my 3-rm resale flat, without any grant in 2006.

I intend to sell it off due to the hot demand around my area. So after the CPF refunds, and whatever proceeds to me, I intend to purchase a 4-rm resale flat near my parents. How much grants can I able to get from HDB? Let's say the purchase price of the 4-rm is $320K. My neighbor just sold his 3-rm unit @ $255K. Do I need to pay any cash upfront?

Note: I am the only one contributing to the housing loans, and gross salary below $5K. Currently my last OA is about 15K.

 

[KopRulez]

Any experts can answer?

 

[devilcup]

A simple question which i oso posted in another thread. When is AHG consider? yes i only referring to first timer on bto/new flat purchase only.

1) during application to lease of agreement? (first downpayment)
2) before collection of key? (second downpayment due to stagger payment)

thanks!

 

[lancelot77]

Hi all,

just need some confirmation here. If me and my spouse's combined income is more than $5k, then we not eligible for $30k 1st timer grant liao right?

We applying for a new flat under the BTO scheme.