1. Adjustment of MSR for HDB Loans - Mortgage Service Ratio (MSR) for HDB loan is now 30 per cent of their gross monthly income down from 35 per cent.
Implications - In short, it means HDB loan borrower will have a lesser permissible percentage of their income capped usable to service their monthly mortgage loan. Ultimately, this brings down the loan quantum offered by HDB. With a lower loan quantum eligible, buyers can either fork out more cash/CPF when doing purchase or look for cheaper housing alternatives within their means.
2. Adjustment of max loan repayment for HDB housing - The maximum repayment period for HDB housing loans will also be lowered from 30 to 25 years, and from 35 to 30 years for bank loans taken to buy HDB flats, including DBSS.
Implications - Obviously with a lower loan repayment tenure, it means that borrower will not be able to spread out loan repayment further to bring down monthly installments and with MSR cap, it may also bring down the loan quantum permissible by HDB or financial institutions. With a lower loan quantum eligible, buyers can either fork out more cash/CPF when doing purchase or look for cheaper housing alternatives within their means.
3. Launch of New three-generation flat(3Gen Flats), features four bedrooms and three bathrooms, with a floor area of 115 sq m. First project will be launched in Yishun in the upcoming September BTO exercise.
To be eligible for 3Gen flats, applicants must form a multi-generation family comprising a married or courting couple and their parents. To prevent abuse of the scheme, subletting of rooms will not be allowed during the five-year minimum occupation period. After fulfilling the minimum occupation period, the flats can only be resold in the open market to other eligible multi-generation families.
Personal 2 cents worth - Personally feels that the traditional multi-generation (Jumbo) flats are still more attractive because of their much larger floor area and non restriction of non multi-generation resale purchasers.
4. Multi-Generation Priority Scheme allows the older set of parents to buy to a three-room flat.
5. Special Housing Grant (SHG) income limit will now be $6,500, a sharp increase from the previous $2,500. (Limited to BTO or sale of balance flats)
6. BTO's Step Up Grant of $15,000 to the sellers' of two-room homes when they upgrade to three-room flats.
7. Singles who earn up to $3,250 a month, instead of the current income cap of $1,125, can now also get the SHG when they apply for two-room flats on their own.
8. New 3-year waiting period for permanent residents to buy resale flats after receiving their PR status applies to resale applications received on or after 5.30pm on Tuesday.
Implications - New PRs will now either have to seek rental alternatives or seek private residential options. Potentially, HDB resale market might be affected, pushing away a group of new PR buyers to the rental or private market.
