As a 1st-time buyer, you're eligible to choose from 3 types of units which are considered 'subsidised flats':
1) A New Flat from HDB (a.k.a. BTO flats);
2) A New EC from a Developer; or
3) A Resale Flat with Grant.
As a 2nd-time buyer, you're eligible to choose from 2 types of units which are considered 'subsidised flats' after paying a Resale Levy:
1) A New Flat from HDB (a.k.a. BTO flats); or
2) A New EC from a Developer.
Before you decide to read any further, make sure you're eligible for the unit, grants and schemes here.
If you're an eligible Singaporean Citizen (SC), you will be allowed to apply for a 'subsidised flat' twice. But a subsidy will only be given once.
New Flats from HDB (a.k.a. BTO flats)
Buyers ballot for a unit which is typically set to be built and completed in about 3 years. A Built-to-Order (BTO) flat is the most well-known option for eligible 1st-time buyers since these units are typically more affordable and guaranteed to be brand new.
New EC from a Developer
Executive Condominiums (ECs) are semi-private condominiums built for mid-to-high income earners (with a combined monthly salary under S$16,000). ECs provide the buyer with condominium facilities at a lower price than buying direct from the private property market. New ECs are considered HDB properties for the first 10 years and can be subsidised by HDB for eligible SCs.
Resale Units with Grant
Resale units are currently-owned HDB flats which are being put up buy their owners for sale through an agent. Buyers who actively look for resale units either have an urgent need for housing and/or want to live in a unit with larger floor area. Resale units are typically (but not always) larger for the same price, and buyers also have the added benefit of a wider choice of unit locations (practically islandwide).
If you've used subsidies to buy your first 'Subsidised Flat' with HDB the first time, you will not be eligible for subsidies on your second flat, and instead, be subject to a Resale Levy when making this purchase.
Why the Resale Levy exists?
A Resale Levy is an amount you have to pay when buying into a second subsidised flat after being an owner of a subsidised flat anytime in the past. This is a measure to ensure that 1st-time buyers have a better shot at buying into subsidised flats than 2nd-time buyers since you've already had your chance to used your subsidy to buy into a subsidised flat once. The Resale Levy amount is determined by the size of your first subsidised flat which you've sold.
However, if you've opted out of using any subsidies for your previous flat, you may use your subsidies to purchase these units as if they were your first subsidised flats.
1) New Flats from HDB (a.k.a. BTO flats)
Buyers ballot for a unit which is typically set to be built and completed in about 3 years. A Built-to-Order (BTO) flat is the most well-known option for eligible 1st-time buyers since these units are typically more affordable and guaranteed to be brand new.
2) New EC from a Developer
Executive Condominiums (ECs) are semi-private condominiums built for mid-to-high income earners (with a combined monthly salary under S$16,000). ECs provide the buyer with condominium facilities at a lower price than buying direct from the private property market. New ECs are considered HDB properties for the first 10 years and can be subsidised by HDB for eligible SCs.
Your 2nd Purchase as a Resale Flat
Do bear in mind that once you've used your subsidies for your first purchase from HDB, you will not be able to use subsidies to purchase a resale flat. However, you will not need to pay a Resale Levy for this. This is an incentive designed to push homeowners who have already used their subsidy into the property free market.
Your 2nd Purchase as a BTO for EC
While you can pay a Resale Levy to move into a BTO flat or EC on your 2nd purchase, some of you may be able to plan ahead and withhold use of your subsidy on your first purchase and use your subsidies to fund your move instead. This is more commonly done for a move into ECs, especially for buyers who work in a stable industry with predictable salary progression.
When buying a Resale Flat and using only a Proximity Housing Grant (PHG). that resale flat will not be considered as a 'subsidised flat'. This is because, the purpose of the PHG is to incentivise close proximity home purchases between parents and children.
