Very soon, HDB will launch the next 3,480 BTO units, out of the 15,000 units slated for release in 2019, in its May 2019 sales launch in the non-mature estates of Tengah and Woodlands, and the mature Kallang/Whampoa estate.
Think you’re ready for a BTO?
In this pragmatic day and age in Singapore, expect your other half to go, “BTO ai mai?” before getting down on one knee to ask you for your hand in marriage with a ring – this is especially so considering the time between your successful application and getting your hands on the keys to your unit. Furthermore, the new rules for home purchase using one’s CPF money to finance their home purchase – where the remaining lease needs to cover the youngest buyer up to the age of 95 before they’re eligible to take a HDB housing loan of up to the full 90% Loan-to-Value limit – will see younger home purchaser go for BTO units too.
Once you’ve both made the collective decision to apply, be prepared to endure the extremely long and nerve-wrecking process before being able to land a BTO flat you can call your own – if you’re lucky enough that is. Based on previous BTO sales launches, application numbers far outnumber the number of units available on offer. For instance, the recent February 2019 BTO sales launch saw 7,691 applicants for the 855 units on offer in the mature Kallang Whampoa estate!
As applying for BTOs is an uncertain process where application success can never be guaranteed, do take your time to consider some key factors before going ahead with this lifetime commitment. Who knows, you may be lucky enough to land your dream unit, in a great location on your very first try!
Factors to consider
1. EligibilityBefore you jump into the bidding process, be sure you’ve checked off all the eligibility condition boxes:
a. Eligible Applicant/Family Nucleus
There are three eligibility schemes should you be looking to purchase a BTO flat (3-room and bigger), namely the public, fiancé/fiancée, and orphans scheme. The most common application is under the fiancé/fiancée scheme, where one doesn’t need to be married to apply for a BTO flat but will just need to solemnise one’s marriage within 3 months of getting the keys to your new home.
b. Citizenship
There will need to be at least one Singapore Citizen applicant, together with at least one other Singapore Citizen or Singapore Permanent Resident. However, do note that one will have to fork out a $10,000 fee at the point of flat purchase if you’re a first-timer household with only one Singapore Citizen and one or more Singapore Permanent Residents.
c. Age
Applicants will need to be 21 years old and above.
d. Income Ceiling
This ties back to the flat size you’d intend to purchase as there are various income ceilings attached to each unit type – tied to one’s average gross monthly household income. For a 3-room flat in non-mature estates, the income ceiling stands at $6,000 or $12,000 depending on the project, and in mature estates, there’s a $12,000 income ceiling. If you’re looking at 4-room flat or bigger, the income ceiling is set at $12,000, and at $18,000 if you’re purchasing with extended or multi-generational family.
e. Property Ownership
Applicants shouldn’t own other property both in and outside of Singapore, and have recently sold of any in the past 30 months. You must also not have purchased a new HDB/DBSS flat or Executive Condominium, or received a CPF Housing Grant before.
Although one of the biggest selling points of purchasing a BTO flat is its affordability compared to that of resale flats, you’ll still need to consider your finances seeing as a home purchase is the long-term financial commitment.
You’ll need to estimate your budget for your flat purchase by considering the amount of cash and CPF Ordinary Account savings you currently have, whether you’re eligible for CPF Housing Grants, and also the housing loan amount – which refers to the amount you can borrow from either HDB or the bank, and which is determined by your age, income and financial situation.
3.Selecting your unit
Once you’ve worked out your budget, you’ll then need to consider your household size and subsequently choose a flat type which fit both that and your budget. You’ll want to take into account the approximate floor area, the total number of bedrooms and also bathrooms you’d like to have in your future home.
The comprehensive guide on everything on BTOs
So once you’ve considered all the above factors, head on over to SRX’s ‘HDB BTO Launches’ portal, where you can easily access information about BTOs such as details about upcoming BTO launches, its pricing forecast as well as estimated monthly cash payments above CPF payments. With all that information easily available to you on a single platform, you’ll have a much easier planning process to choose which BTO flat is best for you!
If you’re all geared up and are ready to ‘chope’ your new BTO flat, we at SRX wish you the very best of luck and may the odds be in your favour!