Beginning in June, young couples, including NSFs and students, can apply for new apartments with a less down payment
The revised policy for young couples, which includes students and National Servicemen (NSFs), entails a reduced initial down payment of 2.5 percent of the flat’s price starting in June.
Starting in June, eligible young couples, including full-time National Servicemen (NSFs), students, or those who completed their studies or National Service within the last 12 months of applying for the HDB flat eligibility letter, will benefit from enhanced support when purchasing a new Housing Board (HDB) flat. The revised policy includes a reduced initial down payment of 2.5 percent of the purchase price. Previously, these couples could apply for a new flat and defer their income assessment for housing grants or loans until just before key collection.
The Ministry of National Development and HDB announced a policy change that will benefit eligible young couples seeking to purchase a new Housing Board (HDB) flat. Starting in June, these couples, including full-time National Servicemen (NSFs) and students, will enjoy a reduced initial down payment of 2.5% of the purchase price.
The policy aims to facilitate eligibility for grants like the Enhanced CPF Housing Grant (EHG), which mandates at least one party to be continuously employed for a minimum of 12 months. By deferring income assessment until key collection, couples have a higher likelihood of qualifying for grants and may secure a higher loan amount. The staggered down payment scheme, introduced earlier, further eases upfront costs, aligning with the government’s efforts to support young couples in their homeownership journey.
The government aims to provide greater support to young couples by enhancing measures to alleviate their initial financial burden when purchasing Housing Board (HDB) flats. National Development Minister Desmond Lee emphasized the challenges faced by couples relying on their own savings or family support due to deferred income assessment, particularly for the initial costs of booking a flat.
To address this, the staggered down payment scheme will be improved by reducing the initial down payment to 2.5%, effectively lowering the financial barrier for these couples. The policy change will take effect from the June Build-to-Order (BTO) sales exercise.
TEMPORARY RENTAL VOUCHERS
Families eligible for the Parenthood Provisional Housing Scheme (PPHS) will receive additional support through temporary rental vouchers worth S$300 per month. The PPHS allows families to rent an HDB flat while awaiting the completion of their homes, and HDB aims to double the supply of rental flats under this scheme from 2,000 to 4,000 by the second half of 2025.
To assist eligible families in renting HDB flats or bedrooms in the open market, the government will issue PPHS (Open Market) Vouchers for one year starting in July. The S$300 voucher amount was carefully calibrated to offer relief to eligible families while minimizing potential inflationary impacts on the rental market. Authorities will closely monitor the vouchers’ impact on the rental market.
To qualify for the new voucher, families must meet the criteria outlined in the Parenthood Provisional Housing Scheme (PPHS) and have a registered rental tenancy with HDB at the time of application. Eligible families will receive the voucher on a reimbursement basis, determined by the duration of their tenancy within the specified one-year period. Families renting from immediate family members or close relatives will not be eligible for the voucher. Further details will be provided closer to the implementation date, according to the authorities.
