{"id":33872,"date":"2021-11-22T15:00:53","date_gmt":"2021-11-22T07:00:53","guid":{"rendered":"https:\/\/www.you.co\/sg\/?p=33872"},"modified":"2021-11-22T15:00:56","modified_gmt":"2021-11-22T07:00:56","slug":"your-first-bto-singapore","status":"publish","type":"post","link":"https:\/\/www.you.co\/sg\/blog\/your-first-bto-singapore\/","title":{"rendered":"7 Steps To Buying Your First BTO Singapore 2022"},"content":{"rendered":"\n

From the various schemes to the never-ending acronyms, purchasing a BTO in Singapore can be daunting if you\u2019re a complete newbie. To help you out, we\u2019ve cut through the clutter and compiled an easy-to-follow guide on all you need to know about being a homeowner in Singapore!<\/strong><\/h2>\n\n\n\n
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So you\u2019ve decided to take the leap and commit your life (and bank account) to the long and sometimes arduous process of owning your very first BTO Singapore home \u2014 congrats! But with every ounce of excitement comes an equal amount of nerves and confusion. The Built-To-Order road is, after all, paved with tons of paperwork and complicated processes. <\/p>\n\n\n\n

While a quick Google search could give you all you need to know, the sheer amount of info would probably send any first-timer into overdrive. That\u2019s where we come in \u2014 we\u2019ve curated all the essential information about landing your very first home in this ultimate BTO Singapore guide, perfect for the clueless and those looking for a quick lunchtime read.  <\/p>\n\n\n\n

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Step 1: Check Your BTO Eligibility!<\/strong><\/h2>\n\n\n\n
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This is obviously the most crucial step before you send yourself down the BTO Singapore rabbit hole because what\u2019s the point if you can\u2019t purchase one, right? An important thing to note is that the type of flat you\u2019re eligible to apply for is determined by six schemes, however, to qualify for those schemes, you\u2019d need: <\/p>\n\n\n\n

\u2705 To have at least one Singapore Citizen applicant 
\u2705 To be at least 21 years old 
\u2705 To ensure all applicants do not own other property overseas or locally, and must not have disposed of any within the last 30 months<\/p>\n\n\n\n

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Step 2: What Kind of BTO Can I Get?<\/strong><\/h2>\n\n\n\n
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If you\u2019ve met the above BTO Singapore requirements, you may now proceed to the next step. What type of flat are you eligible for?<\/p>\n\n\n\n

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\ud83c\udfe1\u00a0 For 3-Room HDB Flats & Bigger\u00a0<\/strong><\/h2>\n\n\n\n
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Eligibility Scheme<\/strong><\/td>Public Scheme (Family Nucleus)<\/strong><\/td>Fianc\u00e9\/Fianc\u00e9e Scheme<\/strong><\/td>Orphans Scheme<\/strong><\/td><\/tr>
Requirements<\/strong><\/td>\ud83d\udc49\ud83c\udffb You + Spouse (and kids, if any)<\/em>
\ud83d\udc49\ud83c\udffb You + Parents (and siblings, if any) <\/em>
\ud83d\udc49\ud83c\udffb You + Kids, applying as a divorced\/widowed single parent<\/td>		\ud83d\udc49\ud83c\udffb You + Future Spouse (and future kids, if any<\/em>)

*You\u2019ll need to solemnise your marriage within three months of collecting the keys to your flat.<\/td>		\ud83d\udc49\ud83c\udffb You + Siblings* are orphans and are all single (i.e. unmarried, divorced, or widowed)\u00a0

\ud83d\udc49\ud83c\udffb At least one of the deceased parents was a Singapore Citizen or Permanent Resident

*If purchasing under this scheme, siblings cannot buy or rent flats separately.\u00a0<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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\ud83c\udfe1  <\/strong>For 2-Room Flexi Flat (Non-Mature Estates*)<\/strong><\/h2>\n\n\n\n
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*<\/em>mature estates =<\/em><\/strong> residential areas more than 20 years old (usually more developed and equipped with better amenities and public transport infrastructure)<\/em>
non-mature estates = <\/em><\/strong>residential areas less than 20 years old<\/em><\/p>\n\n\n\n

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Eligibility Scheme<\/strong><\/td>Single Singapore Citizen Scheme<\/strong><\/td>Joint Singles Scheme<\/strong><\/td>Non-Citizen Spouse Scheme<\/strong><\/td><\/tr>
Requirements<\/strong><\/td>\u2705 First-timer
\u2705 Single (i.e. unmarried, divorced, or widowed)\u00a0
\u2705 At least 35 years old if unmarried or divorced, and at least 21 years old if widowed
<\/td>
\u2705 First-timers
\u2705 Single (i.e. unmarried, divorced, or widowed)\u00a0
\u2705 At least 35 years old\u00a0
\u2705 All Singaporean Citizens
\u2705 For 2 – 4 Applicants\u00a0
<\/td>		\u2705 First-timer 
\u2705 Spouse must be holding a valid Long Term Visit Pass or Work Pass
 
*If you have a child from the marriage, and they are a Singapore Citizen \/ Singapore Permanent Resident, then you can apply for a flat under the Public Scheme<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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\ud83d\udca1 Note: <\/strong>If you fall under the Public, Fianc\u00e9\/Fianc\u00e9e, or Orphans Schemes, you\u2019re immediately eligible to apply for a 2-Room Flexi Flat in mature estates!<\/p>\n\n\n\n

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\ud83c\udfe1  Income Ceiling<\/strong><\/h2>\n\n\n\n
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This depends on (and determines) the type of flat you intend to apply for. If your average gross monthly household income (that\u2019s your salary before CPF deduction) exceeds the income ceiling, then you, unfortunately, do not pass the BTO vibe check<\/em>. <\/p>\n\n\n\n

You\u2019re eligible to apply for a flat if you meet the following income ceilings: <\/strong><\/p>\n\n\n\n

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2-Bedroom<\/strong><\/td>3-Bedroom<\/strong><\/td>4-Bedroom or more<\/strong><\/td><\/tr>
S$7,000 <\/td>S$7,000 or S$14,000

\ud83d\udc49\ud83c\udffb depending on the BTO project<\/td>		S$21,000

\ud83d\udc49\ud83c\udffb for extended families and\/or multi-generation households <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

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Everything looking good so far? Great! You\u2019re now one step closer to becoming a BTO Singapore homeowner. \ud83c\udf89 <\/p>\n\n\n\n

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However, with the approval comes a whole new world of responsibilities \u2014 crucial financial decisions included. These million-dollar question(s) includes: <\/p>\n\n\n\n

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(A) How Much Will My Flat Cost?<\/strong><\/h2>\n\n\n\n
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The cost of your flat depends on several factors, but *spoiler alert*<\/em>, they\u2019re the very same factors that make a BTO project attractive:<\/p>\n\n\n\n

i. Location, Location, Location<\/strong><\/p>\n\n\n\n

It comes as no surprise that a BTO project\u2019s location will affect its demand and price. After all, wouldn\u2019t you want to live a walking distance from your favourite bubble tea store or just minutes from the train station or grocery store? <\/p>\n\n\n\n

\ud83d\udca1 Check out URA\u2019s Master Plan<\/a> for a sneak peek at possible upcoming projects. Plus, here<\/a> are some upcoming BTO projects in 2022.<\/p>\n\n\n\n

ii. Flat Attributes<\/strong><\/p>\n\n\n\n

Chances are, you want a unit with a stellar view of nature as opposed to the dusty, hectic highway \u2014 and so do the thousands of BTO applicants! There\u2019s also size, orientation, story height, plus fittings and furnishes to consider. <\/p>\n\n\n\n

iii. Timing<\/strong><\/p>\n\n\n\n

No one would\u2019ve thought they\u2019d live to see million-dollar HDB resale flats, but here we are. The property market is powerful and unpredictable \u2014 but fortunately, HDB has promised to keep the prices of new flats as affordable as possible regardless of these unseen macro forces. <\/p>\n\n\n\n

 \ud83d\udca1 Check out past BTO launch prices here<\/a>!<\/p>\n\n\n\n

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(B) Can I Cushion The Blow With Grants Or Subsidies? <\/strong><\/h2>\n\n\n\n
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Yes<\/em>, there are subsidies available! Meet., the Enhanced CPF Housing Grant (EHG). <\/strong><\/p>\n\n\n\n

If you\u2019ve had friends who were in the market for BTO Singapore housing in the last few years, you’d have heard them talk about two very confusing subsidy grants. However, we don\u2019t need to get into those because the EHG will henceforth be replacing the preceding two grants! <\/p>\n\n\n\n

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What Does This Mean For First-Time Applicants?<\/strong><\/h2>\n\n\n\n
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If you are purchasing your BTO as a family nucleus or as an engaged couple, you will get to enjoy grants of up to $80,000, regardless of your choice of flat or location. The great news is that the income ceiling for the EHG is set at $9,000 a month<\/strong>, which is higher than the previous grants, making owning a home a lot more affordable! <\/p>\n\n\n\n

Find out more about the EHG and eligibility based on average monthly household income in the table below: <\/p>\n\n\n\n

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Image credits: HDB<\/em><\/p>\n\n\n\n

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Step 3: Submit Your Application aka<\/em> Balloting <\/strong><\/h2>\n\n\n\n
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\ud83d\udea8 <\/strong>Once HDB officially announces the launch of the project, you have exactly one week to apply<\/strong>. This will be done via the pretty intuitive HDB application portal, HDB InfoWEB<\/a>. <\/p>\n\n\n\n

This is the part where you\u2019ll be forking out your very first payment in the BTO process (don\u2019t worry, it\u2019s a small fee). At this stage you can also try to improve your chances of getting a queue number \u2014 but with limitations of course. HDB offers six priority schemes<\/strong> for you to tap into, depending on eligibility. However, because you\u2019re a first-time homeowner, we\u2019ll only share the three schemes that will likely be of interest to you. <\/p>\n\n\n\n

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Parenthood Priority Scheme<\/strong><\/td>Multi-Generation Priority Scheme<\/strong><\/td>Married Child Priority Scheme<\/strong><\/td><\/tr>
\u2705  For first-timer married couples with a child ages 18 and below. 
\ud83d\udc49\ud83c\udffb The scheme is also applicable for expecting couples. <\/td>		\u2705  For married children and their parents who wish to purchase flats in the same precinct. <\/td>\u2705  For a married child applying for a flat within a 4KM radius from their parent\u2019s home.
\ud83d\udc49\ud83c\udffb This scheme also applies to those under the Fianc\u00e9\/Fianc\u00e9e Scheme. <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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\ud83d\udea8 <\/strong>Once you\u2019re all set filling up those forms, you\u2019ll have to pay a S$10 admin fee<\/strong> to seal the deal.<\/p>\n\n\n\n

\ud83d\udca1Tip: <\/strong>To avoid missing out on the launch exercise, opt-in for HDB\u2019s email and SMS notifications<\/a><\/p>\n\n\n\n

Just remember that applying to less popular estates could increase your chances \u2014 and more importantly, keep in mind that balloting for a BTO Singapore home is a game of chance. It really doesn\u2019t matter how early or late you apply! <\/strong><\/p>\n\n\n\n

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Step 4: The Balloting Outcome <\/strong><\/h2>\n\n\n\n
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So you\u2019ve manifested at full moon<\/em>, saged<\/em> your room, and prayed to the gods<\/em>. Now comes the moment of truth. It\u2019s been approximately three (excruciating) weeks after the application window has closed \u2014 it\u2019s time to receive your BTO Singapore balloting outcome. <\/p>\n\n\n\n

\ud83c\udf89 Success! You\u2019ve gotten a queue number to choose your flat \u2014 the lower the better (i.e. single or double digits) because it means that you have a lot more units to choose from. <\/p>\n\n\n\n

\ud83d\udea8 To Note:<\/strong> Receiving a queue number doesn\u2019t mean that you\u2019ll definitely get a unit; your chances are simply higher than other applicants. For example, if your queue number is 150, but there are only 145 units available \u2014 it\u2019s likely that you won\u2019t get a unit unless other applicants drop out.<\/p>\n\n\n\n

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Loan Documents<\/strong><\/h2>\n\n\n\n
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\ud83d\udca1 This is the point that we recommend you start prepping your loan documents, which are required when you book your flat. Unless you already have enough cash in your bank account to pay for your flat, you\u2019ll have to choose between an HDB Housing Loan<\/strong> or a bank loan<\/strong>.<\/p>\n\n\n\n

While there isn\u2019t a better<\/em> option per se, there are pros and cons for both options. So the deal-breaker for either option will really depend on individual preference and financial goals. Here\u2019s a quick breakdown of the main differences: <\/p>\n\n\n\n

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<\/td>HDB Housing Loan<\/strong><\/td>Bank Loan<\/strong><\/td>Our Take<\/strong><\/td><\/tr>
Interest Rate<\/strong><\/td>2.6%<\/td>1.2% – 2.5% \u2014 depending on bank and chosen package

*You can choose between a fixed or floating rate loan package<\/td>		\ud83d\udc49\ud83c\udffb  Banks typically have lower interest rates, but these percentages are only fixed for 2-3 years. 

\ud83d\udc49\ud83c\udffb Your HDB loan will remain at 2.6% throughout the entire repayment period. 
<\/td><\/tr>
Loan to Value (LTV) limit<\/strong><\/td>90%<\/td>75%<\/td>\ud83d\udc49\ud83c\udffb You can borrow 15% more from HDB, which is a pretty sizable amount. 

\ud83d\udc49\ud83c\udffb That being said, it also means that you\u2019ll have to repay more. 
<\/td><\/tr>
Down Payment Amount<\/strong><\/td>10% paid fully via CPF<\/td>5% must be paid in cash. The remaining 20% can be paid using your CPF<\/td>\ud83d\udc49\ud83c\udffb It really depends on how much disposable cash you have on hand, and how much you\u2019re willing to part with. 

Some Questions to Ask:<\/strong>

\ud83d\udca1 Is there enough for your home reno? 

\ud83d\udca1 Do you plan to start a family? 
<\/td><\/tr>
Late Repayment<\/strong><\/td>More lenient, with a fixed 7.5% late repayment fee charged annually<\/td>Less lenient, with a $50 late payment fee per repayment<\/em><\/td>\ud83d\udca1  #realtalk \u2014 if you\u2019re making a purchase as big as this, a late repayment shouldn\u2019t even be on the cards! 
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Early Repayment<\/strong><\/td>$0 penalty<\/td>1.5% penalty<\/td>\ud83d\udc49\ud83c\udffb  Good on you for wanting to clear your debt as soon as possible! 
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Step 5: Booking Your Flat <\/strong><\/h2>\n\n\n\n
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A couple of weeks after the release of the balloting results, you\u2019ll get the opportunity to pay a visit to HDB Hub to choose your unit!<\/p>\n\n\n\n

\ud83d\udca1  At this point, you should also already have either an HDB Loan Eligibility Letter (HLE) from HDB or an Approval-in-Principle from your bank, depending on which loan option you\u2019ve opted for. <\/p>\n\n\n\n

\ud83d\udea8 Remember to bring along your NETS card because this is when you\u2019ll have to pay your option fee<\/strong> which forms part of the downpayment: <\/p>\n\n\n\n

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Flat Type<\/strong><\/td>Option Fee<\/strong><\/td><\/tr>
2-room Flexi<\/td>S$500<\/td><\/tr>
3-room<\/td>S$1,000<\/td><\/tr>
4-room and bigger<\/td>S$2,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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\ud83d\udea8 You\u2019ll also need to apply for any HDB grants during this time, but fret not \u2014 the friendly HDB officer will guide you through the process. <\/p>\n\n\n\n

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Step 6: Signing Your Lease<\/strong><\/h2>\n\n\n\n
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After a four-month lull from the date you booked your flat, you\u2019ll be invited back to the Hub to sign your BTO Singapore lease agreement \u2014 and to pay for the down payment and any other fees. <\/p>\n\n\n\n

\u2705 \u00a0For Those Taking An HDB Loan:<\/strong><\/p>\n\n\n\n

\ud83d\udc49\ud83c\udffb This means forking out 10% of the purchase price through CPF and\/or cash. <\/p>\n\n\n\n

\u2705  <\/strong>For Those Taking A Bank Loan:<\/strong><\/p>\n\n\n\n

\ud83d\udc49\ud83c\udffb  You\u2019ll have to pay a minimum of 5% in cash, and the remaining 15% through your CPF. <\/p>\n\n\n\n

\ud83d\udea8 You\u2019ll also need to pay your stamp duty<\/strong> and legal fees. <\/strong>There\u2019s quite a bit of math involved at this point, so instead of overwhelming you with numbers, check out this cost list by HDB<\/a> when you\u2019re ready. <\/p>\n\n\n\n

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Ownership Status<\/strong><\/h2>\n\n\n\n
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At this point, you\u2019ll also have to decide on the ownership status of your upcoming BTO Singapore HDB flat! It\u2019s pretty straightforward: <\/p>\n\n\n\n

\u2705  <\/strong>Joint-Tenancy<\/strong> <\/p>\n\n\n\n

\ud83d\udc49\ud83c\udffb  Both owners have an equal stake in the flat regardless of how much each has contributed<\/p>\n\n\n\n

\u2705  <\/strong>Tenancy-In-Common<\/strong><\/p>\n\n\n\n

\ud83d\udc49\ud83c\udffb  Both owners\u2019 percentage of ownership is dependent on how much each person contributed<\/p>\n\n\n\n

And now, you wait for 4-5 years.<\/p>\n\n\n\n

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Step 7: Collecting Your Keys <\/strong><\/h2>\n\n\n\n
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No more waiting with bated breath \u2014 the home is officially yours! Head down to the hallowed halls of the HDB Hub once more to collect your keys, and to make the final round of stamp duty, legal and other miscellaneous fee payments.<\/p>\n\n\n\n

You can finally close the chapter on the long and arduous BTO Singapore journey, and embark on your exciting new adventure<\/a> as a legal homeowner. We can\u2019t promise that it won\u2019t be riddled with anxiety and annoyance (hello, home reno<\/a>), but we assure you that it\u2019ll be an unforgettable one. <\/p>\n\n\n\n

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Congratulations, You\u2019re A New BTO Singapore Home Owner!<\/strong><\/h2>\n\n\n\n
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In our lifetime, big-ticket purchases are likely few and far between. So when they do eventually happen, you deserve the right to shout from the rooftops (proverbial of course, please don\u2019t stand on actual rooftops) and celebrate your success! <\/p>\n\n\n\n

Once you\u2019re done popping that champagne, it\u2019s important you come back down to Earth and face the new debt-riddled reality \u2014 this means reassessing your spending habits<\/a> (like cutting down on your weekend brunch dates), and spending more time building up your nest. <\/p>\n\n\n\n

Of course, while people often make \u2018debt\u2019 out to be some sort of dirty word, remember that your eventual home purchase can<\/em> become good debt<\/a> i.e. things that help you build wealth and income over time \u2014 you just need to make sure you take your financial planning seriously. <\/p>\n\n\n\n

While we might not be able to help you get discounts off your monthly BTO repayments, our YouTrip Card<\/a> still comes in handy! Whether it\u2019s a Taobao shopping spree<\/a> for your future BTO, or for that long-awaited VTL trip<\/a> out to anywhere and everywhere, just know that our Wholesale Exchange Rates<\/a> and YouTrip Perks<\/a> will always be here for you. A little goes a long way, after all!<\/p>\n\n\n\n

If you still haven\u2019t gotten your free YouTrip card, what are you waiting for? Stack and save with <BLOG5<\/strong><\/a>> for a free S$5 off your shopping spree! For more great guides like this, join our Telegram Channel (@YouTripSG)<\/strong><\/a> and subscribe to our free weekly newsletter here<\/strong><\/a> or down below!<\/p>\n\n\n\n

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Related Articles:<\/strong><\/p>\n\n\n\n

10 Creative Taobao Home Decor For Your BTO<\/a><\/strong><\/p>\n\n\n\n

<\/a>10 Best Taobao Coffee Tables That Are Gorgeous, Aesthetic & Quirky<\/a><\/strong><\/p>\n\n\n\n

10 Bathroom Accessories & Fittings That\u2019s Hotel-Worthy<\/a><\/strong><\/p>\n\n\n\n

\"This<\/figure>\n","protected":false},"excerpt":{"rendered":"

Get them keys ASAP.<\/p>\n","protected":false},"author":49,"featured_media":33873,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[623],"tags":[26137],"class_list":["post-33872","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lifestyle","tag-home-decor"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.you.co\/sg\/wp-json\/wp\/v2\/posts\/33872","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.you.co\/sg\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.you.co\/sg\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.you.co\/sg\/wp-json\/wp\/v2\/users\/49"}],"replies":[{"embeddable":true,"href":"https:\/\/www.you.co\/sg\/wp-json\/wp\/v2\/comments?post=33872"}],"version-history":[{"count":0,"href":"https:\/\/www.you.co\/sg\/wp-json\/wp\/v2\/posts\/33872\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.you.co\/sg\/wp-json\/wp\/v2\/media\/33873"}],"wp:attachment":[{"href":"https:\/\/www.you.co\/sg\/wp-json\/wp\/v2\/media?parent=33872"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.you.co\/sg\/wp-json\/wp\/v2\/categories?post=33872"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.you.co\/sg\/wp-json\/wp\/v2\/tags?post=33872"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}