One of the perks of applying for an HDB flat at a younger age is that your income is likely to be lower, giving you a higher chance of being eligible for HDB grants. Time is also on your side, as you can afford to wait a few years to collect the keys to your HDB flat.
Read Also: [BTO Guide] Eligibility Criteria For Buying A HDB In Singapore
Eligibility Criteria To Apply For HDB’s Enhanced CPF Housing Grant (EHG)
For first-timer couples applying for HDB flats, one of the applicants must be continuously employed for 12 months before the date of their flat application to be eligible for HDB grants. They also have to stay employed at the time of their flat application.
This eligibility criterion is strictly imposed for the HDB Enhanced CPF Housing Grant (EHG).
Source: HDB
The amount received under the EHG depends on the average gross monthly household income for the 12 months prior to the flat application. Larger grant amounts are granted to couples with lower household incomes, as shown in the table below for first-time applicants:
Source: HDB
The grant amount is halved if the application is made by couples comprising first-timer and second-timer households.
Read Also: Complete Guide To HDB Housing Grants In Singapore For Different Types Of Flats
The problem arises when young couples want to apply for an HDB flat and qualify for HDB grants but have not been employed continuously for the past 12 months. This deters them from applying for a flat, as they would not be eligible for the grants at that point in time. This could be a problem that young couples who are still studying or in NS face.
Deferred Income Assessment
Since the sales exercise in May 2018, HDB has allowed young couples who apply for HDB flats to defer their assessment of income for grants and loans.
The key change that the deferred income assessment makes is that it separates the date of income assessment from the flat application date, allowing young couples to apply for a flat first, and then have their income assessed about 3 months before flat completion (for uncompleted flats) or during the flat booking (for completed flats).
Hence, the condition of being in continuous employment for 12 months only needs to be fulfilled closer to the key collection date. Young couples who wish to receive HDB grants can still apply for their flat first, rather than delay their application till a year or two later when they have started working for a period of one year. This also allows these couples time to build up their savings while the flat is being built.
The deferred income assessment will apply to couples who are full-time students, National Servicemen (NSFs) or those who have recently graduated or completed their NS in the past 12 months prior to flat application.
Flat applicants must be at least 21 years old and at least one applicant must be aged 30 years old or below. The couple must also be married and are applying for a flat under the Fiance/Fiancee scheme to qualify for deferred income assessment.
Eligibility Criteria To Defer Income Assessment
Source: HDB
Do note, however, that deferred income assessment does not mean that you will be getting the HDB grants in the future. It only means that the income assessment will be done by HDB at a later date. At the point of your income assessment in the future, you will still need to satisfy the grant’s eligibility criteria.
Read Also: 6 Decisions You Need To Make Before Buying A BTO Flat
Situations When You Can Defer Income Assessment
Here are a few probable scenarios where these couples can defer their income assessment.
Scenario 1: Both are currently still students.
Scenario 2: One applicant in NS (or just completed NS), One applicant still studying (or just completed studies)
Scenario 3: Both just completed studies within the last 12 months
Scenario 4: One applicant is still studying, and one applicant just completed studies within the last 12 months
For these scenarios, the deferment of income assessment increases the chances that by the time the couple’s income is assessed, at least one of the applicants will have started working.
However, the timing of the flat application still matters, as the couple may not qualify for grants despite deferring their income assessment. For instance, applicants who applied while still studying could still have just graduated by the time of their key collection, not having worked the full 12 months yet.
Hence, an ideal timing to apply for the flat is to work backwards from the estimated date of delivery of the HDB flat, ensuring that one of the applicants would have worked at least a year prior to the key collection. It would also be useful to estimate the amount of grants you think you will be able to meet the criteria for.
With couples now being able to defer their income assessment, young couples can now apply for an HDB flat earlier and still be able to qualify for grants a few years down the road. However, one of the key considerations when it comes to applying for a BTO is whether the BTO location is somewhere you are looking to stay in the future.
Read Also: 5 Ways To Get Your First HDB Flat That You Can Afford
This article was first published on 12 March 2019 and has been updated with the latest information.
The post How To Enjoy HDB Grants (Via Deferred Income Assessment) Even If You Are Not In Continuous Employment For 12 Months appeared first on DollarsAndSense.sg.
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