What is the difference between buying a HDB, EC, or Private Property?

Every Singaporean is entitled to 2 subsidized housing.
But when you buy a 2nd house, you need to pay a resale levy.

A Singaporean can buy a brand new HDB flat (include BTO) from the HDB, a subsidized resale flat (ie with housing grant)
or a brand new EC from the developer.

The monthly household income ceiling is $14K for HDB units.
That means you and your spouse combined monthly income cannot exceed $14K.

The monthly household income ceiling is $16K for an EC unit from a property developer.
If you are buying an EC for the first time, you get a housing grant.

Let’s look at the pros and cons

If you are buying a brand-new HDB unit, you are unlikely to make a loss after the 5-year MOP.
However, after you sell the house and paid the loan, you must deposit into your CPF account for whatever amount you had withdrawn from CPF for the purchase of the house plus accrued interest.

For private property, total debt servicing ratio (TDSR) is up to 55%
The TDDR includes other loans such as car loan, study loan, credit card loan. installment loan.
If you don’t have any debt, you can allocate up to 55% of your monthly income to service the housing loan.

It is easier to buy a private condo than an EC.
Suppose if your household income is $10K a month
You get a $1.2 million loan for a private condo.
or $668K for an EC.

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