The Building Blocks of Home – Purchasing a 2-Room BTO flat
With the various housing measures, a household earning $1,000
can afford a 2-room flat. Let’s take a typical 2-room flat in a non-mature
estate which costs $90,000. For this, you’ll need a 10% down payment of $9,000 which can be financed by your savings or CPF. Based on your household income of $1,000, the Government provides an additional CPF housing grant of $40,000 and a special housing grant of $20,000.
In addition, NS men may also make use of their NS Recognition Award of $4,000 for their flat
purchase. The total grants and awards that you will now receive is $64,000. This covers
more than 70% of the flat price. For the remaining amount, you will require a mortgage loan of
$17,000. If you pay up the loan within 25 years, you will need to pay a monthly instalment of only $78,
which can be fully paid with your monthly CPF earnings of around $217.
This means you do not have to pay any additional cash top-ups for your flat. In short, a new
house is well within your reach if you plan it right, choose a flat within your budget
and make use of the relevant Government grants. Start using these building blocks today to
realise your dream of owning a home. Visit hdb.gov.sg to find out more, or check out
the other income scenarios.