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Info on Grants/Subsidies Available For First Timer

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Old 17-04-2009, 05:53 PM   #16
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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.
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

Last edited by yeowenzheng; 17-04-2009 at 05:56 PM..
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Old 17-04-2009, 05:57 PM   #17
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yeowenzheng,

Thanks for the explanation. Fully understood.
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Old 17-04-2009, 09:20 PM   #18
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Thumbs up

in order to resale a flat in open market, the owner must have occupied for at least 5yrs.

if less den 5 yrs and owner die die wanna get rid of it, hdb is the only choice he could opt for. But as you may note the remark from HDB, the repurchased flat could have been occupied previously or could be empty till now from the commencement of the lease date. i believe you could check it out from the neighbours of the unit you aiming. haha

btw those repurchase flat you cant get cpf grant except AHG, you can try to compare the pricing from the half yearly sale of those repurchase flats after deducting AHG and those resale in the open market after deducting AHG + CPF housing grant for first timer applicant.
Thanks a zillion for your explaination , it certainly cleared up some doubts .
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Old 17-04-2009, 11:46 PM   #19
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nutnudge and mask you are both most welcome, as i'm also currently lookin for my future ideal home thus some research was done haha

let's wish each other to get our ideal home soon~!
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Old 19-04-2009, 12:31 AM   #20
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nutnudge and mask you are both most welcome, as i'm also currently lookin for my future ideal home thus some research was done haha

let's wish each other to get our ideal home soon~!
Good luck , all of us need a bit of that
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Old 20-04-2009, 12:03 AM   #21
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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
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Old 20-04-2009, 09:11 AM   #22
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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
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Old 19-05-2009, 12:11 PM   #23
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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?
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Old 21-05-2009, 08:34 AM   #24
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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
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Old 21-05-2009, 11:03 AM   #25
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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
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Old 21-05-2009, 11:36 AM   #26
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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)
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Old 22-05-2009, 12:19 AM   #27
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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
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Old 22-05-2009, 01:10 AM   #28
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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.
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Old 22-05-2009, 07:35 AM   #29
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If i dont know , u know huh ....... busybody .......
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Old 22-05-2009, 10:20 AM   #30
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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.
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