New Executive Condominium Eligibility Criteria
A Concise Summary of EC Eligibility Criteria
New Launch Executive Condominium
If you are looking to purchase a NEW Launch Executive Condominium (EC), there are a number of Eligibility Criteria and Income Assessment Guidelines to be aware of.
In this page, we will cover the most frequent asked questions for buyers who are new to the guidelines of a New EC. Buyers are also encourage to understand the Essential EC Purchase Procedures before embarking your journey.
Table of Contents
HDB EC Eligibility Criteria
Please do note that the Eligibility Criteria for buyers of a New EC are determined and set by HDB, hence do refer to the guideline at HDB website for more information : HDB Executive Condominium Eligibility
The EC Eligibility Criteria are as follows :
HDB EC eApplication Form
Buyers who are interested to apply for a NEW EC will require to complete an Application Form, that will cover information such as Buyer's Name, NRIC, Work Information, Income for the Assessment Period, Residential Address and whether buyer are first or second timers.
These information will help form part of the assessment of the eligibility of the buyers and will also allow Buyers to be given a Ballot ticket to Ballot for the New EC.
HDB EC Payment Scheme : NPS and DPS
Purchasers of a New EC can choose between 2 payment modes : the Normal Progressive Payment Scheme (NPS) or the Deferred Payment Scheme (DPS).
The NPS Payment structure will require payment from buyers as per each construction stage of the project, with the Developer calling for payment and buyers furnishing either Cash, CPF or Loan.
As for the DPS structure, it only requires buyers to pay the first 20% of the unit purchase price, along with the Buyer's Stamp Duty and Legal Fees, The next payment of 65% is only required at TOP.
HDB EC Purchase Cost Involve
Financing for EC are typically from Banks or Financial Institutions as HDB does not loan for ECs. It's important for buyers to understand and prepared for the expected cost to be involve.
Buyers who require financing are advisable to obtain an In-Principal Approval (IPA) in advance before booking, providing buyer an assurance to qualify for a loan and ascertains the maximum loan one qualify so as not to risk forfeiting booking fee.
In addition, for Executive Condominium purchase it is possible to obtain 75% loan even a buyer currently having a housing loan (but not for private property purchase).
Income Assessment for New EC
To purchase a New EC, all applicants will have to submit their income documents for a period of 12 months, 2 months preceding the month of Application for the New EC.
For example, if the month of Application for a New EC is in November 2024, then the applicants will needs to submit their payslips for the month of November 2023 to October 2024.
Do note that ALL components in the payslip ARE to be included for Income Assessment.
Only Bonus(es) are excluded. For e.g, Reimbursement/Claims, Overtime, Director Fees are to be considered.
How the household income is assessed is that the monthly gross income values (along with relevant income components) are added up within the assessment period and divided by 12.
The household income includes all income of applicants & core occupiers.
All children below 21 years old have to be included as occupiers, Children above 21 years old do not need to be included as occupiers.
For children below 21 years old, if they are full time students or NSFs, their income will not be considered in the calculation of gross monthly income,
The Income Ceiling is $16,000 (if your income exceeds $16,000, please Contact Us Here)
Resale Levy
The Resale Levy is only applicable for buyers who have previously enjoyed a housing subsidy before, i.e. they have purchased either a BTO/SBF directly from HDB, or purchased a Resale HDB and took a CPF Housing Grant (except if they took a Proximity Grant)
But if you do not intend to buy a second subsidised flat from HDB, for example, if you are buying a resale flat, or a private residential property, you need not pay the resale. levy.
The Resale Levy is only payable when buyers wish to purchase the 2nd Subsidised Housing Flat, i.e. another BTO/SBF or a New EC.
The Resale Levy that is payable will be assessed based on the type of your First subsidised Housing flat and not the one which you are intending to purchase.
Subsidised flat sold on or after 3 March 2006
If the first subsidised flat was sold from 3 March 2006 onwards, buyers will pay a fixed amount of resale levy as follows:
Subsidised flat sold before 3 March 2006
If the first subsidised flat was sold before 3 March 2006, a percentage graded resale levy will apply (refer table for more detail). If sellers had opted to defer the payment of the resale levy until you purchase another flat from HDB, an interest at a prevailing rate of 5% per annum is applicable.
HDB EC CPF Housing Grants
Applicants of a New EC may also apply for CPF Housing Grants; however housing grants are only applicable for First Timers buyers. Second Timers are not eligible for Housing Grants.
The amount of Housing Grant for applicants is dependent on their combined income as follows:
Definition of First and Second Timer
HDB EC MOP and Privatisation Period
For all EC Projects, once the development has been issued a TOP (Temporary Occupation Permit) date, the MOP (Minimum Occupation Period) of 5 years will commence.
During the MOP period, owners of an EC unit are not allowed to sell the unit (unless with explicit permission from HDB), and cannot rent out the whole unit, although they are allowed to rent out rooms.
Once the MOP Period has been met, the EC Project is semi-privatised, and the unit can then be sold in the Open Market to Singapore Citizen and Permanent Residents including Singles.
At the same time, owners of the EC unit can also choose to Decouple and allow one of the owners to purchase other residential property without incurring ABSD (Additional Buyer's Stamp Duty).
At 10 years from the project TOP, the EC development becomes fully privatised and all units can be sold to Foreigners as well.
What Constitutes to Date of Taking Possession?
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Date of key collection, for flats bought direct from HDB
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Date of transfer at market value of flat bought with the CPF Housing Grant
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Date of resale completion, for resale flats bough from open market with Housing Grant
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Date of key collection for EC / DBSS flats bought from a developer.
Buyer's Stamp Duty and Additional Buyer's Stamp Duty
For buyers of a New EC (and also for all Residential.Commercial/Industrial Properties), it is a mandatory to pay Buyer's Stamp Duty (BSD) within 14 days of Exercising the Option To Purchase
Refer : Buyer's Stamp Duty, IRAS
Buyers of a New EC, even they currently owing a HDB at point of purchasing the EC unit, will not required to pay the Additional Buyer's Stamp Duty (ABSD). This is because buyers are required to dispose their HDB within 6 months of the New EC reaching TOP (Temporary Occupation Permit).
HDB EC Manner of Holding
Purchaser of a New EC can choose their Manner of Holding when they are Exercising the Option To Purchase, typically done at a law firm.
The Manner of Holding can be Joint Tenancy, i.e. both owners will hold in equal share of 50%-50%.
Alternatively, the owners can also choose Tenancy in Common, in which owners are free to decide the shares percentage that each will hold. One example would be to hold the property in 90%-10% share distribution, which will aid in reducing fees if the owners intend to Decouple their ownership in future.
Do note that the percentage of shares owned by each owner does not determine how much he/she can contribute toward the payment of the property.
Conditions After Purchase of an Executive Condominium
1. Existing HDB / DBSS Flat
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If you currently own an HDB/DBSS flat, you and/or your spouse must dispose of the flat within 6 months from the date of issuance of the Temporary Occupation Permit of the new EC.
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If you intend to apply to purchase an EC where the Temporary Occupation Permit for the EC has already been issued, you will needs to dispose if your existing HDB/DBSS flat within 6 months from the date of the Developer send you the Notice of Vacant Possession.
2. Enjoyment of Subsidy
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You and your spouse will be considered as having a housing subsidy when you buy an executive condo unit from a developer.
3. Buying Another Subsidised Housing Unit
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If you sell your Executive Condo in the open market, you must wait 30 months after the sale before you can submit an application to purchase a new flat from HDB or another EC from developer
4. Interest in Private Property
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You cannot invest in private residential property (either locally or overseas) during the 5-year minimum occupation period.