Singapore's housing system is uniquely designed to cater to the needs of its citizens and Permanent Residents (PRs), showcasing a blend of practicality and support. This system emphasises quality and affordable living, underpinning the nation's commitment to the enhancement of its residents’ well-being. As we explore the specifics of Singapore's housing policies, it becomes clear that they offer substantial benefits to both citizens and PRs, creating an environment where housing is more than just a basic need; it's a step towards long-term stability and community belonging.
The scope of these benefits, tailored to different life stages and needs, reflects a thoughtful approach to housing. From the use of the Central Provident Fund (CPF) for more accessible home financing to the eligibility for purchasing Housing Development Board (HDB) flats, these policies are geared towards inclusivity and sustainability.
As we explore the specific benefits that PRs and citizens enjoy in Singapore's housing landscape, the role of these policies in fostering a secure and integrated community becomes increasingly evident.
What are the Benefits PRs and Citizens Can Enjoy?
In Singapore, by becoming a PR or a citizen, individuals gain key housing benefits. This change is crucial for anyone going through or considering the PR process. One significant benefit is using one’s CPF for housing. By allowing PRs and citizens to use their CPF savings for down payments and mortgages, what this does is make the buying of a home more attainable. Additionally, PRs and citizens have the eligibility to buy HDB flats, though certain restrictions apply.
Furthermore, there exist other benefits that PRs and citizens can take advantage of when buying their first home. These include housing grants and subsidies, benefits that aim to make homes more affordable for PRs and citizens who want to live closer to their families or within the same neighbourhood. But first, let’s understand how the CPF scheme works for housing.
CPF Contributions for Housing
As mentioned in a previous article, PRs need to contribute to their CPF account. This contribution is useful, especially when it comes to buying an HDB flat. Through the accumulation of funds in their CPF Ordinary Account (OA), these savings can be used for the flat’s down payment and subsequent mortgage repayments. This is particularly advantageous given the high cost of real estate in land scarce Singapore. Not only does it make the dream of owning a home an attainable one, but it also ensures that a significant portion of one’s income is not tied up in housing expenses. And that’s not all; what PRs also get to enjoy are housing grants that help further subsidise the purchase of a house.
In Singapore, housing grants greatly assist citizens and PRs in purchasing flats, but it's essential to understand the restrictions for single PRs.
A single PR, unfortunately, is not allowed to buy a new or resale HDB flat. Eligibility for PRs to purchase HDB flats is contingent on two specific schemes: the HDB Public Scheme or the Fiancé/Fiancée Scheme. The Public Scheme involves buying a house with a family unit (spouse, children, siblings, and parents), while the Fiancé/Fiancée Scheme is for those engaged to be married.
Furthermore, if a household consists only of PRs, they are not permitted to buy new, subsidised HDB flats sold by the government, such as Built-to-Order (BTO) flats or Sale of Balance Flats (SBF) units. However, they can purchase a resale flat together, provided certain conditions are met.
For a citizen and PR pair, various grants like the Family Grant, Enhanced CPF Housing Grant, and Proximity Housing Grant are available to aid in purchasing a resale flat. These grants are designed to make home ownership more accessible and affordable, particularly for first-time buyers or those seeking to live near their families.
An Alternative Solution
As an alternative for PRs unable to buy HDB flats, their CPF savings can be utilised for investing in private properties, like condominiums. And should the opportunity to buy a landed house arise, a PR is also eligible to purchase one. However, he or she will need to get approval from the Land Dealings Approval Unit (LDAU) of the Singapore Land Authority (SLA). Essentially, what this offers is a viable option for PRs to use their CPF for property investment, aligning with their homeownership goals within the regulatory framework.
Partner with A1 Immigration for Your PR Journey
Though your journey to become a PR in Singapore might seem daunting at the start due to various rules and regulations, there is no need to worry. Here at A1 Immigration, a leading PR application agency, we are your dedicated partner in this journey, offering you expert assistance and advice.
Our team at A1 Immigration focuses exclusively on managing PR applications, providing tailored support that is crucial for a successful application. Whether you're starting your application or addressing the complexities of an appeal, we are here to guide you every step of the way.
Choosing A1 Immigration means entrusting your PR application to a team that values professionalism and offers detailed, personalised guidance. As an agency, our goal is to make your journey in obtaining PR status in Singapore clear and achievable, helping you unlock the various benefits that come with being a PR, including housing benefits.
Get in touch with us today to embark on your PR application journey. Let us be your guide and partner in navigating this important process.