EC Buying Guide 2021[All you need to Know]

Check out: Provence Residences @ Canberra link launching in April 2021

Executive Condominium or EC is a hybrid of public and private housing.  It has all the amenities and features one would expect on a private condo except they are bounded with rules and regulations mandated by HDB.

EC are typically lower in price compared to private condominiums (around the same vicinity). Applicants are able to apply for CPF grants which are unique to EC buyers only but there are also some regulations they need to follow.

first timer 30K CPF grant

After 10 years from the date of the TOP, EC will turn private. Which means it will be treated the same manner as private property.

Prospective EC buyers are subject to initial eligibility and ownership restrictions, which are similar to those imposed on buyers of subsidised HDB flats.

For instance, only a Singapore citizen family nucleus is entitled to purchase an EC, and buyers have to meet a 5-year Minimum Occupation Period (MOP ) before they are allowed to sell or rent out the EC.

During the 6th to 10th year after TOP, ECs can only be sold to Singaporean or Singapore PR. Units can also be rented out for rental income.

After 10 years, all restrictions are lifted and units can be sold to Singaporean, Singapore PR & Foreigner.

Let’s look at some of the basic requirements when buying EC;

Basic Requirements or Eligibility buying EC

  • Must form a family nucleus (SC/SC or SC/SPR).
  • The average gross monthly household income must not exceed $16,000.
  • Must not own or dispose of any private property within 30 months.
  • Must not buy direct or taken housing subsidy from HDB Twice (include SERS, resale flat with Grant etc).
  • Must meet the Minimum Occupation Period (MOP) for the existing flat.

To purchase an EC, there must be at least 1 Singaporean buying with another Singaporean or Singapore Permanent Resident. We can explore more into the eligibility in detail.

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    To purchase an EC, you must comply with HDB rules and ensure that you are eligible to purchase. Executive condos are considered subsidised (apart from the CPF Housing Grant) and buyers must meet the criteria below:

    Citizenship

    • 1st Applicant must be a Singapore Citizen (SC)
    • At least 1 other applicant must be a Singapore Citizen (SC) or Singapore Permanent Resident (SPR)
    • All singles must be Singapore Citizens if applying under the Joint Singles Scheme

    Age

    • At least 21 years old
    • At least 35 years old, if applying under the Joint Singles Scheme

    Family Nucleus Requirement

    We shall look into the family nucleus requirement in details;

    You will need to qualify for the EC under one of these eligibility schemes:

    EC Eligible scheme

    • Public Scheme
    • Fiance/Fiancee Scheme
    • Orphans Scheme
    • Joint Singles Scheme

    (1) Public Scheme

    • You must be a Singapore Citizen and at least 21 years old at the time of application.
    • Your family nucleus must comprise at least another Singapore Citizen (SC) or Singapore Permanent Resident (SPR).
    • Family Nucleus Requirement: You, the applicant, and your spouse or your parents or your children under your legal custody, care and control (for widowed/ divorced).

    (2) Fiance & Fiancee Scheme 

    • You must be a Singapore Citizen and at least 21 years old at the time of application.
    • If your fiance/fiancee is below 21 years of age, he or she can only be listed as an occupier in your EC application.
    • If your fiance/fiancee is below 21 but above 18 years of age, written consent from the parents or guardians must be submitted with your EC application.

    (3) Orphan Scheme 

    • You must be a Singapore Citizen and at least 21 years old at the time of application
    • A single orphan applicant and all his unmarried siblings are to be listed in the same application
    • At least one of your deceased parents was Singapore Citizen (SC) or Singapore Permanent Resident (SPR)

    (4) Joint Singles Scheme

    • You may apply with another single person.
    • Both of you must be Singapore Citizens (SC) and at least 35 years old at the time of application
    • You must apply jointly as co-applicants.if any)
    • No CPF Housing Grant for this Scheme.

    EC Eligibility Income

    The household income limit for the purchase of new executive condominiums (EC) has also been raised to $16,000 monthly from $14,000 previously.

    So to say, the applicants and the occupier(if any) income will take into consideration for the total household income.

    There are EC sales with a household income exceeding $16K, with the need for HDB approval.

    Income Considered for Income Assessment

    • Part-Time Income
    • Allowances (fixed/ variable) received on a regular basis (e.g. allowances for food, transport, laundry, uniform, etc.)
    • Stipend (a fixed regular sum paid as a salary or as expenses to a clergyman, teacher, or public official.)
    • Sustenance allowance

    Income Not Considered for Income Assessment

    • Alimony allowance
    • National Service Allowance
    • Bonuses
    • Rental income
    • Director’s fee
    • Scholarship overseas allowance
    • Income from ad hoc overtime work
    • Overseas cost of living allowance
    • Interest from deposit accounts
    • Pension

    Check out: Provence Residences @ Canberra link launching in April 2021

    1st Timer CPF Housing Grant

    Ist timer CPF housing grant

    Citizen Top-Up Grant

    The Citizen Top -Up is a $10,000 housing subsidy that is given to eligible Singapore Citizen /Singapore Permanent Resident (SC/SPR) households when a qualifying household member becomes a Singapore Citizen. You need to submit your application to HDB within 6 months of being eligible for it.

    • It is only credited into the CPF Ordinary Accounts of eligible SC and distributed to:
      -The original SC applicant/owner, or
      -The SC spouse who was previously an SPR(if listed as an owner)

     

    • An SC/SPR household will qualify for the Citizen Top-Up in any of these instances:
      -The SPRspouse originally listed in the flat application obtains Singapore Citizenship status
      -An SC child is born to the SC applicant and spouse originally listed in the flat application

    The applicants must be the owner of the EC at the time of the claim.

    2nd Timer Resale Levy

    Situations in which a resale levy is payable;
    You need to pay a resale levy in either of these cases:

    • You dispose of your subsidised flat and then buy a second subsidised flat from HDB
    • You dispose of your subsidised flat and then buy an EC from a developer where the land sale was launched on or after 9 December 2013.

    Half-resale levy for Singles Grant recipients
    If you are Singles Grant recipient, you only need to pay half the resale levy amount when you subsequently form a family and buy a second subsidised flat.

    2nd timer resale levy

    Note: Resale levy is payable before the signing of the S&P agreement if the subsidised flat is sold before the application of the EC.

    EC Sales Procedure and Estimated timeline

    Sales procedure and estimated timeline

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