Buying an HDB flat is a significant milestone for many Singaporean couples. If you're a Singapore Citizen (SC) with a foreign spouse, navigating the eligibility criteria and purchase process may seem daunting. This guide provides comprehensive information on the Non-Citizen Spouse Scheme, helping you understand the requirements, steps involved, and available options for securing your dream home in Singapore.
Can I buy HDB with my foreign spouse?
Yes, you can! Singapore citizens (SCs) can buy an HDB flat with their foreign spouses under the Non-Citizen Spouse Scheme. This scheme, previously known as the Non-Resident Spouse Scheme, allows mixed-nationality couples, including SCs and foreigners, to jointly buy an HDB flat.
Types of Public Housing Eligible for Mixed-Nationality Couples Under Non-Citizen Spouse Scheme
New BTO HDB
Under the Non-Citizen Spouse Scheme, you can apply for a new Build-To-Order (BTO) flat directly from HDB. BTO flats are typically more affordable compared to resale flats, though they come with a waiting period of several years before possession.
Resale HDB Flats
Alternatively, if you prefer quicker availability or have a specific location in mind, you can opt to purchase a resale HDB flat. These flats are available on the open market, allowing for immediate occupancy. However, resale flats tend to be more expensive than BTO flats, so it's important to evaluate your budget carefully.
Eligibility Criteria for the Non-Citizen Spouse Scheme
Before applying for the Non-Citizen Spouse Scheme, it’s crucial to meet the following basic eligibility criteria:
Age
The main applicant must be a Singapore citizen:
- For BTO Flats: At least 35 years old when applying with a foreign spouse.
- For Resale Flats: At least 21 years old when applying with a foreign spouse.
Citizenship of The Applicants / Work / Visitor Pass
- BTO Flats: Your foreign spouse must hold a valid Visit Pass (VP) or Work Pass (WP) at the time of the Housing Flat Eligibility (HFE) letter application and flat application. If the pass expires during the process, it must be renewed and remain valid when you collect the keys to your new flat.
- Resale Flats: If the main applicant is 21 years or older, the foreign spouse needs a valid LTVP or WP with a minimum validity of 6 months from the date of issue at the time of the HFE letter application.
For applicants aged 35 and above, the foreign spouse only needs a valid Visit Pass or WP of any validity period at the point of your HFE letter and resale flat application
In addition, for non-resident family members, you must include one of the following in your HFE letter and resale flat application:
- Parents or siblings (if any)
- Children under your legal custody, care, and control (for widowed/divorced persons)
At least one of these family members must hold a valid LTVP or WP with a minimum of 6 months' validity at the time of your HFE letter application and resale flat application. If the pass expires during the transaction, it must be renewed and remain valid when you complete the resale flat purchase.
Income requirements
- For BTO flats: Eligible applicants can only purchase a 2-room Flexi flat (99-year lease). The combined monthly household income must not exceed S$7,000 for a 2-room Flexi flat. If applying for a short-lease 2-room Flexi flat, the income ceiling is S$14,000, and both applicants must be at least 55 years old.
- For resale flats: There is no income ceiling for purchasing a resale flat on the open market. However, income ceilings apply if you intend to apply for CPF housing grants (excluding the Proximity Housing Grant) or an HDB housing loan.
Family Nucleus
The application must involve a family nucleus, typically consisting of a Singapore Citizen, a foreign spouse, and any dependent children. Ensure that the family structure complies with HDB’s guidelines to qualify.
Ownership Structure
If you or any listed person in the application currently owns or has an interest in an HDB flat or private property, it must be disposed of within six months of purchasing the new flat.
Additionally, the applicant and their spouse must not own or have an interest in any local or overseas private property for the required period prior to the application:
- For HDB flats: Private property must have been disposed of at least 30 months before applying for a subsidised flat.
- For resale flats: Private property must have been disposed of at least 15 months before applying for a non-subsidised resale flat.
Seniors aged 55 and above are exempt from certain property disposal timelines when purchasing a short-lease 2-room Flexi flat or a 4-room or smaller non-subsidised resale flat.
Are HDB/CPF housing grants available for mixed-nationality couples?
While Singapore citizens married to non-citizen spouses are eligible for HDB flats under the Non-Citizen Spouse Scheme, CPF housing grants are primarily available for singles. Here’s a breakdown of the available grants for singles:
CPF Housing Grants for Resale (Singles)
- Who Is It For: This grant is available to single Singapore citizens purchasing a resale flat.
- Grant Amount: The amount varies based on factors like income, flat size, and the applicant's circumstances. It typically ranges from a few thousand dollars to larger amounts.
- Eligibility Note: Mixed-nationality couples can be eligible for this grant only if the Singaporean spouse is single at the time of application.
Enhanced CPF Housing Grant (Singles)
- Who Is It For: This grant is intended for single Singapore citizens purchasing a resale flat, with an emphasis on those with higher monthly incomes.
- Grant Amount: Up to $80,000, depending on the applicant’s income and whether the flat is 3-room or smaller.
- Eligibility Note: While this grant is exclusively available to singles, mixed-nationality couples may be eligible if they meet the criteria for single applicants.
Note: To be eligible for the Enhanced CPF Housing Grant (EHG), you must first qualify for the CPF Housing Grant for Resale Flats (Singles). Additionally, if you meet certain conditions, you may apply for the Proximity Housing Grant (PHG) for Singles.
Proximity Housing Grant (Singles)
- Who Is It For: Single Singapore citizens who want to buy a resale flat near their parents.
- Grant Amount: Up to $30,000, depending on the situation.
- Eligibility Note: While this grant is exclusively available to singles, mixed-nationality couples may be eligible if they meet the criteria for single applicants.
Top-up Grant
If you have previously received the CPF Housing Grant (Singles) for a resale flat or purchased a 2-room or 2-room Flexi flat from HDB as a single, and are now married, you may apply for the Top-Up Grant.
The Family Grant or Top-Up Grant received by core applicants can be used to offset the purchase price of the flat or reduce the housing loan required for the flat purchase
- Who Is It For: This grant is available for first-time Singaporean Citizen applicants who are now married, and whose household qualifies for the Family Grant or Top-Up Grant.
- Grant Amount: The Top-Up Grant is either the difference between the Family Grant and the Singles Grant previously received, or up to $40,000 if you purchased a 2-room or 2-room Flexi flat from HDB.
- Eligibility Note: This grant is available to married first-time Singaporean Citizens who previously received the CPF Housing Grant (Singles) or purchased a 2-room/2-room Flexi flat as a single.
A Step-by-Step Guide to Buying Property in Singapore as a Mixed-Nationality Couple
Buying an HDB flat with a foreign spouse involves a specific process. Here's a step-by-step guide to help you navigate the journey:
Property Type and Market Research
Begin by deciding whether a new BTO flat or a resale flat better suits your needs and timeline. Then, delve into researching different HDB towns and estates. Consider factors like proximity to amenities, schools, transportation, and the overall community.
Choosing the Property
Once you have a good understanding of the market, start shortlisting potential flats based on your budget, desired features, and preferred location. Make appointments to view the flats in person, allowing you to assess their condition, layout, and overall suitability.
Application & Booking
If you decide on a BTO flat, submit your application during the launch period. Singles or couples applying with a foreign spouse are primarily eligible for 2-room Flexi flats. For resale flats, begin searching for suitable options in the open market. If your BTO application is successful, you’ll need to attend a selection appointment to choose your unit.
Option to Purchase (OTP)
When buying a resale flat, you'll need to negotiate the price with the seller and secure an Option to Purchase (OTP). This document grants you the exclusive right to buy the flat for a specified period.
Sales & Purchase Agreement
Once the OTP is exercised, you'll receive the Sales & Purchase (S&P) agreement. It's crucial to engage a conveyancing lawyer to review this legal document and ensure you understand all the terms and conditions.
Legal Procedures
Fulfill all the necessary legal procedures, including obtaining HDB's approval for the purchase and completing the conveyancing process with your lawyer.
Financial Formalities
Secure your financing, whether it's an HDB loan or a bank loan. Make the down payment and settle the remaining purchase price according to the agreed-upon terms.
Minimum Occupation Period (MOP) for Flats Purchased Under the Non-Citizen Spouse Scheme
Flats purchased under the Non-Citizen Spouse Scheme come with a Minimum Occupation Period (MOP) of 5 years. During this period, you are not allowed to sell or rent out the entire flat. However, you can rent out spare bedrooms with HDB's approval. This rule is in place to ensure that HDB flats are primarily used for owner-occupation.
Other Property Options for Mixed-Nationality Couples in Singapore
While HDB flats are a popular choice for many Singaporean couples, including those with foreign spouses, there are other property options to consider:
Executive Condominiums (ECs)
ECs are a unique hybrid of public and private housing, offering a more affordable entry point into condo living compared to private condominiums. SCs with foreign spouses can purchase ECs, but they are subject to specific eligibility criteria, including a 5-year Minimum Occupation Period (MOP) and restrictions on ownership during the first 10 years.
Private Condominiums
After fulfilling the MOP for your HDB flat, you have the flexibility to upgrade to a private condominium. There are no restrictions on foreigners buying private condos in Singapore, making them a popular choice for mixed-nationality couples seeking more spacious living and a wider range of amenities.
If you are a foreigner married to a Singapore citizen and purchasing your first private property together, you may be exempted from paying Additional Buyer's Stamp Duty (ABSD).
Landed Properties
Foreigners can generally purchase landed properties in Singapore, but they need to obtain approval from the Singapore Land Authority (SLA). This option is typically more expensive and may involve additional regulations.
Property Taxes for Foreigners in Singapore
It's essential for foreign spouses to be aware of the property taxes applicable when buying property in Singapore. These taxes can significantly impact the overall cost of your purchase.
Additional Buyer's Stamp Duty (ABSD)
ABSD is a tax levied on top of the Buyer's Stamp Duty (BSD) for foreigners and Singapore Permanent Residents (SPRs). The ABSD rate for foreigners buying any residential property in Singapore is currently 60%. This means that if you're a foreigner buying a property worth S$1 million, you'll need to pay S$600,000 in ABSD.
However, if you are married to a Singapore citizen, you may be eligible for an ABSD exemption when purchasing a property jointly as a married couple.
Buyer's Stamp Duty (BSD)
All property buyers in Singapore, regardless of nationality, are required to pay Buyer's Stamp Duty (BSD). This tax is calculated based on the property's purchase price or market value, whichever is higher. The BSD rate is tiered, starting at 1% for the first S$180,000 of the property value and increasing progressively.
The BSD rates are tiered as follows:
- 1% on the first S$180,000.
- 2% on the next S$180,000.
- 3% on the next S$640,000.
- 4% on the next S$500,00
- 5% on the next S$1.5 million
- 6% for value above S$ 3 million
Annual Property Tax
This is a recurring tax based on the Annual Value of your property, which is an estimated rental value determined by the Inland Revenue Authority of Singapore (IRAS). The Annual Property Tax rates are also tiered, with higher rates for more expensive properties.
Final Thoughts
Buying a property in Singapore, especially as a mixed-nationality couple, can be a complex journey with various regulations and options to consider. Understanding the intricacies of the foreign spouse HDB Scheme and navigating the eligibility criteria are crucial steps towards achieving your homeownership dreams.
Whether you're looking to purchase a BTO flat or a resale flat, it's essential to plan ahead, research thoroughly, and seek expert advice when needed. A trusted mortgage broker in Singapore can guide you through the process, from understanding the scheme's requirements to securing the best bank loan for HDB purchase to managing HDB key collection and beyond. By making informed decisions and seeking professional support, you can confidently embark on your homeownership journey in Singapore.
Reference
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HDB Official Website: https://www.hdb.gov.sg/
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CPF Official Website: https://www.cpf.gov.sg/
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IRAS Website: https://www.iras.gov.sg/
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MAS Website: https://www.mas.gov.sg/
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Investopedia: https://www.investopedia.com/
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Dollarback Mortgage: https://dollarbackmortgage.com/
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Seedly: https://blog.seedly.sg/
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PropertyGuru: https://www.propertyguru.com.sg/
