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HDB Flats

BTO vs Resale Flat vs EC

Build-To-Order (BTO)

Pros

  1. Most affordable option; great choice for a first home

  2. Can qualify for housing grants to offset costs

  3. With HDB loans, the down payment is only 10% of the total

  4. With bank loans, the down payment is 25% of the total (but the interest rates may be lower than HDB loans)

  5. You can retain your BTO flat even if you purchase private properties in the future​

Cons

  1. Minimum Occupation Period (MOP): 5 years

    • You have to occupy the BTO flat for at least 5 years before you may purchase a private property (e.g. condo) or a subsequent property

  2. Various criteria must be met to qualify for HDB grants

  3. To qualify for a BTO flat, your monthly income cannot exceed HDB's income ceiling

    • 2-room flats: $7,000

    • 3-room flats: ​$7,000 or $14,000 (depending on the project)

    • 4-room flats: $14,000

    • 3-Generation units: $21,000

  4. Bank loans are subjected to MSR and TDSR requirements: 

    • ​Mortgage Servicing Ratio (MSR): the total housing loans cannot exceed 30% of your gross monthly income.

    • Total Debt Serving Ratio (TDSR): your monthly debt obligation (for all loans, not only housing loans) should not exceed 60% of your gross monthly income.

Resale Flat

Pros

  1. Shortest waiting period

  2. More housing grants are available

    • ​First-timer families buying resale flats can take advantage of the Family Grant (≤ $50,000) and the Proximity Housing Grant (≤ $30,000) 

  3. No income ceiling if financed with bank loans

  4. You can retain your HDB flat even if you purchase private properties in the future

Cons

  1. Usually, there is less appreciation in value

  2. More expensive than BTOs in general

Executive Condominium (EC)

Pros

  1. Cheaper than private condos by about 25% to 35%

  2. Like private condos, an EC also provides access to facilities like swimming pools, gyms, and private car park

  3. Once an EC goes private after 10 years:

    • Prices are often inflated to match the market price of other condominiums

    • The EC be sold to foreigners and companies (larger pool of buyers)

  4. The income ceiling of an EC is higher than that of an HDB ($14,000 to $16,000)

  5. First-time buyers （Singapore citizens and PRs) could be eligible for CPF housing grants to offset the cost 

    • Couples with combined incomes of ≤ $12,000 can get $10,000 to $30,000 worth of CPF housing grants

Cons

  1. Minimum Occupation Period (MOP): 5 years

    • You have to occupy the EC for at least 5 years before you may rent it out or sell it

  2. If you wish to purchase an HDB flat in the future, you must wait 30 months after disposing of all private properties

  3. Not eligible for HDB loans

  4. Bank loans are subjected to MSR and TDSR requirements: 

    • ​Mortgage Servicing Ratio (MSR): the total housing loans cannot exceed 30% of your gross monthly income.

    • Total Debt Serving Ratio (TDSR): your monthly debt obligation (for all loans, including car loans and credit card debt) should not exceed 60% of your gross monthly income.

  5. Loan-To-Value (LTV) limit is 75%​

    • This means that you can only borrow a maximum of 75% of the property valuation or price (whichever is lower)  

    • You need to fork out ≥ 25% down payment, of which 5% must be paid in cash (the remainder can be paid in CPF)

  6. Usually located in less populated areas, so you might need a car

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1. Build-To-Order (BTO)
2. Resale Flat
3. Executive Condominium (EC)
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