You’re probably familiar with the HDB grants and schemes that you’re eligible for when it comes to a straightforward BTO/resale situation… but have you heard about lesser-known schemes such as the Staggered Downpayment Scheme?
In this article, we walk you through 5 important HDB schemes that the average Singaporean knows nothing about. Read on to find out more!
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#1: Staggered Downpayment Scheme
With the Staggered Downpayment Scheme, you can pay your downpayment in two separate instalments. You’ll have to fork out half the amount when you sign the Agreement for Lease, and the second half will be collected when you get your keys. Sweet.
Eligibility for the scheme:
The scheme is eligible to those who:
- Are married (or engaged) and applying for a 2-, 3-, 4-, or 5-room BTO flat
- Are first-timer applicants (or a couple comprising a first-timer and second-timer), and
- Submit their flat application on or before the younger applicant’s 30th birthday
On top of that, flat owners who right-size to 2-room or 3-room flats in non-mature estates can qualify for the scheme as well.
Read more about HDB’s Staggered Downpayment Scheme.
#2: Deferred Downpayment Scheme
Make sure you tell your folks and/or grandparents about this one! The Deferred Downpayment Scheme helps elderly citizens who are right-sizing to defer the payment of downpayment until they collect their keys. This way, elderly flat owners need not worry about cash flow problems, even if their funds are tied up in their existing flat.
Eligibility for the scheme:
All flat buyers who are aged 55 years old and above, have booked a 2-room Flexi or 3-room uncompleted flat, and have not sold their existing flat at the point of new flat application are eligible. This scheme will automatically be extended to buyers; buyers need not apply for the scheme.
Read more about HDB’s Deferred Downpayment Scheme.
#3: Fresh Start Housing Scheme
Who says Singapore doesn’t provide any support for the needy? HDB’s Fresh Start Housing Scheme targets lower-income households currently living in public rental flats, and helps these households own a 2-room Flexi flat.
These households will be assisted via the following measures:
Eligibility for the scheme:
The scheme is extended to second-timer families (ie: households who have previously taken up a housing subsidy) with young children. These families must be currently living in public rental flats, among other criteria.
Read more about HDB’s Fresh Start Housing Scheme.
#4: CPF Housing Grants for ECs
“Aren’t ECs for rich people? Nah, HDB won’t give you any money if you choose to buy an EC!”
It’s a common misconception that there aren’t any grants applicable for ECs. if you’re looking to purchase an EC, you might be eligible for the Family Grant and Half-Housing Grant. The former pays out up to $30,000, and the latter pays out a maximum of $15,000.
Eligibility for the scheme:
To be eligible for the Family Grant, both applicants need to be first-timers. In the case where both applicants are Singapore Citizens (SCs), the maximum household income is capped at $12,000. If one applicant is an SC and the other is a PR, the maximum income is capped at $11,000.
In the case of a first-timer and second-timer couple (ie: one applicant is a first-timer, and the other is a second-timer), the couple may apply for the Half-Housing Grant. Only couples with a household income of $12,000 and below are eligible.
Read more about HDB’s Housing Grants For ECs.
#5: Temporary Loan Scheme
The Temporary Loan Scheme is pretty similar to the Deferred Downpayment Scheme, but it’s applicable to homeowners of all ages. Under this scheme, you can apply for a temporary loan to complete your new flat purchase (while the sale of your existing flat is still underway).
Because your temporary loan counts as a mortgage of the new flat, it will be subsequently redeemed using the proceeds from the sale of your existing flat. This way, you can use the sale proceeds from your existing flat to pay for your new flat, without taking a long-term mortgage loan.
Eligibility for the scheme:
Those who have:
- Booked a new flat, with the keys being ready for collection
- Submitted an application to sell their existing flat
Will be eligible for the Temporary Loan Scheme, with the caveat that they must have sufficient CPF or cash proceeds from the sale of their existing flat to fully redeem the temporary loan.
Read more about HDB’s Temporary Loan Scheme.
Have more questions regarding these schemes? Voice them in the comments section or on our Facebook community page.
If you liked this article, 99.co recommends HDB SERS: Which blocks are most likely to benefit? and 7 things Singaporean homeowners wish they knew before buying property.
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