BTO @ 22 & 26y/o, paid $0 for our BTO downpaymentš¤
[UPDATE] seems like our strategy for high grant, high loan does not work anymore as the rules have changed!! pls read up on ur own to find out the latest HDB policies.
āā
my bf & I had been together for 2.5 years (& living tgt for the 2.5 years) and my bf joked that we should BTO & I said āyou think so easy get? š¤£ā. i was 22 & still in uni and he was 26 and working his fresh grad job. i thought we should just go for it since BTOs take so long to build nowadaysā¦. and we really got a unit š¤£
now that we are 24 & 28, both working full time & together for 4.5 years, it was one of the best decision we made to BTO early and work for a future together. I wanted to share w you guys the timeline & some tips when BTO-ing!
š before applying for a BTO
apply for a HDB Flat Eligibility Letter (HFE) before you submit a BTO application. HDB will access your income and determine your Enhanced CPF Housing Grant (EHG) amount. since i was still a student our joint household income was basically only my bfās income. so we expected to get one of the highest amount for the EHG.
(NOTE: if u are both full time students, ur income assessment will be deferred & will only be assessed during key collection. one student + one working will get you a higher grant!!)
š Aug 2022
the application part is the easiest as you just need to go to HDB website & apply with your singpass! just make sure to research about each project and the terms for the project. for example, we picked the Bukit Merah launch which has 2 projects - Alexandra Vale & Havelock Hillside. they are under PLH which means thereās an MOP of 10 years. we were ok with that and we wanted to pick Havelock Hillside for its proximity to Havelock MRT station.
š Oct 2022
we got a queue number! but our number 16xx was beyond the total number of units available 12xx for the Bukit Merah launch, so we were not betting on being able to select a flat. we applied for the Kallang/Whompoa Nov 2022 launch as well (and we got a queue number in Jan 2023)
š May 2023
got an email from HDB for flat selection for Bukit Merah launch! I was overseas for exchange so my bf & my parents went to HDB to select our unit. we were in the telegram group chat for this launch & watching the units get taken one by one š¤£ (tip: usually, someone will make a shared spreadsheet in these tele groups & they will update everyday the units that are taken).
one day before our appointment, we looked at the remaining units & placed them on watchlist (a very useful feature on HDB website!! they will email u if the unit is no longer avail). we were left w not much options as our q number was quite high & the Chinese ethnic quota was also dropping.
while waiting for ur number to be called, go look at the HDB models and visualise where your unit will be.
when ur number gets called, the HDB officer will inform you again of the remaining units. then, just select ur unit and pay the option fee. this can only be paid via NETS so make sure u adjust ur daily transaction limit. (ours was $2,000 for 4 room)
š July 2024
from may 2023 - july 2024, HDB emailed us twice to resubmit my bfās cpf statements. we finally got our EHG in our CPF in July 2024. we each got half of the grant deposited into our CPF.
š Aug 2024
after the EHG is deposited into your CPF, everything goes by really quickly. we got our downpayment appointment 2 weeks later. both of u need to be present so take leave from work / email HDB to reschedule.
at this stage, u will sign your agreement for lease & pay for your downpayment. ours was under the staggered downpayment scheme (5% at first appointment & 15% at key collection - the number is now 2.5% & 17.5%).
the EHG covered the entirety of of 5% downpayment, and we paid the buyers stamp duty & conveyance fee with our CPF OA. HDB will split the amount equally from both ur CPF OA.
š Q3 2028
our flat will be ready by Q3 2028 (hopefully) & during key collection, we will pay the remaining 10% of downpayment. by then, we will both have accumulated enough CPF OA to cover the downpayment (+ remaining amt from the EHG).
HDB will also reassess our income for the HDB loan amount & we calculated that our monthly mortgage can be payable by our CPF without any cash top ups.
so essentially, i would like to think that we got our bto for free, since CPF OA is just money in our CPF that cannot be used anyway š¤£
āØ if you & ur partner decide that u guys want to BTO, my best advice is to do it when one of u are still schooling, to maximise the EHG amount!
#bto #btoguide #btosg #btosingapore #btoapplication #btotips #housing #sghome #Lemon8SG #RealTalk
If you're considering applying for a BTO, especially at a desirable location like Havelock Hillside, understanding the application timeline and downpayment process is key. One important tip from our experience is to apply early while one partner is still a full-time student to maximize the Enhanced CPF Housing Grant. This can significantly reduce upfront cash outlay. When your queue number is high, as it was for us (over 1600), joining online community chats can help track unit availability and ethnic quota status in real time, giving you an edge during flat selection. Also, don't underestimate the usefulness of features on the HDB website such as the watchlist, which notifies you when a unit is no longer available. Regarding downpayment, the staggered payment scheme means you pay part of it at the agreement of lease signing and the rest during key collection. With grants like the EHG fully covering initial payments, and combined use of CPF Ordinary Account funds for fees and stamp duty, you could end up paying very little or no out-of-pocket cash. Knowing your daily NETS limit beforehand is crucial as the initial option fee is paid via NETS. Remember that after key collection, HDB reassesses your income to determine your loan and monthly mortgage. Planning ahead to ensure your CPF contributions can cover repayments will ease financial stress. Lastly, keep updated on policy changes as grant rules and maximum allowable loans can shift, impacting your eligibility and payment calculations. Our journey taught us patience and proactive research truly pay off in turning a dream home into reality with minimal upfront costs.
your post is outdated already. no one can repeat the same things you did because HDB changed the policies