Fraud Blocker
Your search results

Ultimate Handbook on HDB Income Ceilings for BTO, Resale Flats, and Executive Condominiums

Posted by Jayson Ang on December 23, 2024
| 0

TLDR

Owning an HDB home in Singapore depends largely on income ceilings. The HDB income ceiling limits monthly household earnings to ensure public housing remains accessible. For families, the ceiling ranges from $12,000 to $16,000, depending on the flat type. Singles have a ceiling of $7,000 for most 2-room flats, but higher incomes can opt for resale flats or executive condominiums (ECs). The income is calculated over 12 months, excluding bonuses but including allowances. Exceeding the ceiling disqualifies you from BTO flats but allows resale flat purchases without income restrictions. Extended families can combine incomes under a higher ceiling of $21,000.

Purchasing a humble HDB home may be the one scenario where you’d find yourself yearning for a smaller paycheck.

Undeniably, our income plays a significant role in determining our housing options. A higher salary equates to greater financial flexibility and the possibility of owning a larger and more luxurious home.

Yet, the exception to this rule lies in the realm of HDB flats. These quintessential public housing units, home to the majority of Singaporeans, adhere to stringent eligibility requirements.

To join the ranks of HDB homeowners, one must not only belong to a typical family unit but also not surpass the income ceiling, which varies depending on the type of HDB and purchasing scheme.

What Is HDB Income Ceiling?

The HDB income ceiling is the ultimate gauge of monthly household earnings for all individuals (be it owners or occupants) mentioned in the HDB Flat Eligibility (HFE) document, determining their eligibility for owning a public housing flat. This figure stands apart from the household income used to assess credit for HDB housing loans, as it does not take into account the occupier’s income.

Recently in 2019, the HDB income ceiling underwent a thorough examination and emerged with upgraded limits – $12,000 to $14,000 for families eyeing BTO flats and $14,000 to $16,000 for those aiming for executive condominiums (ECs). This widened the scope of eligible applicants, with 8 out of 10 Singaporeans now capable of vying for a BTO flat, and approximately 9 out of 10 Singaporeans able to apply for an EC unit.

By imposing the income ceiling, HDB strives to ensure that public housing remains attainable for the majority of the populace. Moreover, housing subsidies are generously bestowed upon those in dire need of them, making dreams of owning a home a reality for all.

How Is The HDB Monthly Household Income Calculated?

The HDB calculates your monthly household income (regardless of fixed or variable pay) over a span of 12 months, with the assessment period ending two months before your HFE letter application. So, if you apply for the letter in May 2024, the assessment period will be from April 2023 to March 2024.

During this period, any months of no-pay leave will be taken into account and considered as a form of unemployment. In such cases, your monthly income will be based on the average income earned during the months when you were employed.

For instance, let’s say you earned a gross monthly income of $4,000 for the first 6 months and took a three-month break without pay before resuming work at the same rate. In this scenario, your assessed gross monthly income would be calculated as follows: $4,000 (monthly income) x 9 (months worked), averaged over 12 months = $3,000.

To determine your monthly income, HDB takes into consideration all components of your employment or trade, including overtime pay, allowances for transportation or mobile phone expenses, and employee benefits like birthday bonuses and marriage tokens. However, please note that bonuses, such as the annual wage supplement (AWS) and national service allowances, are not included in the assessment.

Income Ceiling For Single Citizens   

2-room Flexi Flat on Short Lease 2-room Flexi Flat on 99-Year Lease and with HDB Housing Loan Resale Flat with CPF Housing Grant for Singles and HDB Housing Loan Executive Condominium from Property Developer 
SSC or JS Scheme SSC or JS Scheme SSC Scheme* JS Scheme Single with Parents JS Scheme
$14,000 $7,000 $7,000 $14,000 $14,000 $16,000

*For the purchase of up to 5-room resale flat on the open market.

Singles above the age of 35 have the option to acquire up to 5-room resale flats in the open market or 2-room BTO flexi flats with a 99-year lease in non-mature areas (which will be categorized as Standard, Plus, and Prime depending on their location attributes starting from the October 2024 sales launch). These sought-after properties come with an income ceiling of $7,000.

Meanwhile, seniors aged 55 and above can revel in the unique concept of 2-room flexi flats with short leases, spanning from 15 to 45 years. These specialized homes are available under the SSC or JS Scheme, with a maximum income ceiling of $14,000.

For those with a higher income of over $7,000, the choices broaden to include resale flats or executive condominiums (ECs) from developers under the JS Scheme, with income ceilings of $14,000 and $16,000 respectively.

Unlike HDB flats, ECs cannot be purchased individually under the SSC Scheme. However, singles above the age of 35 have the opportunity to join forces with up to 3 other individuals under the JS Scheme, as long as the combined income does not exceed the $16,000 ceiling.

Income Ceiling For Citizen Families

Flat from HDB / Resale PLH Flats Resale Flat with Housing Grant HDB Housing Loan EC Unit from Property Developer
2-room Flexi 3-room 4-room or Bigger
Short Lease 99 years
$14,000 $7,000 $7,000 or $14,000 $14,000 $14,000 $14,000 $16,000

 For families and couples looking to purchase a home in the bustling city-state of Singapore, the income ceiling can be a determining factor. At $14,000, this threshold is the standard for most BTO HDB flats, Prime Location Public Housing (PLH) flats, and resale flats bought with housing grants or HDB loans.

However, for the coveted 2-room BTO flexi flats with 99-year leases and 3-room BTO flats, the income ceiling may be lowered to $7,000, depending on the project. To stay in the loop, be sure to keep an eye out for updates on the income ceiling during launch.

But fear not, for those who exceed the HDB flat income ceiling, there is still hope. The solution? Executive condominiums with a slightly higher income ceiling of $16,000. However, unlike HDBs, financing for ECs cannot be done through HDB loans and will require private bank loans, similar to those used for private properties. This also means an upfront downpayment of 25% of the purchase price, with a minimum of 5% in cash.

In other words, if you’re dreaming of owning an EC straight from the developer, make sure your savings are in tip-top shape to cover any financing gaps based on your household income and to meet the cash component of the downpayment requirements.

Income Ceiling For Extended Families 

If an Executive Condominium is too far-reaching for your budget, you may want to contemplate the option of purchasing a spacious 4 or 5-room HDB flat alongside your children, who should also have a stable income, as co-applicants or occupiers. This can be made possible through the extended or multi-generation family scheme, which allows for a higher household income ceiling of 1.5 times the standard limit or a generous $21,000. To determine the average gross monthly household income for extended families, the following calculation is used:

Family Profile Income of Group A (cannot exceed $14,000 per month) Income of Group B (cannot exceed $14,000 per month) Income Ceiling of Extended Family
Parents with single working children Parents with one single working child Other single children Total incomes of Groups A & B must not exceed $21,000
Parents with married child* Parents with single working children (if any) Married child’s family*

*Includes applicants buying a flat with their fiancé/fiancée.

The family profile is divided into two distinct categories, where the financial limit for each group is set at $14,000, and the total income for both groups must not exceed $21,000. To illustrate, let’s consider a fictional family consisting of a married couple and their three independent working children, who aspire to upgrade to a 5-room flat with the help of an HDB housing loan. Their individual monthly incomes are as follows:

Husband: $6,000
Wife: $5,000
Child 1: $5,000
Child 2: $3,000
Child 3: $2,000

Their monthly household as an extended family would amount to:

Group A Group B Total Income
Parents and one child:
Husband ($6,000) + Wife ($5,000) + Child 2 ($3,000)
Remaining children:
Child 1 ($5,000) + Child 3 ($2,000)
$21,000
$14,000 $7,000

By exceeding the standard income ceiling of $14,000, the family paves the way for a larger HDB housing loan, opening doors to a more spacious and luxurious home.

What If Your Income Exceeds The HDB Income Ceiling

Although having a salary above the average population may seem like a fortunate position, it unfortunately disqualifies you from directly purchasing a flat from HDB or receiving any housing grants. But don’t fret, this doesn’t mean you can’t own a HDB flat at all. You still have the option of buying a resale flat in any desired location.

The beauty of resale HDB flats lies in their lack of income ceiling requirement, allowing buyers and sellers to come to a mutual agreement. However, be prepared to pay a higher price for your resale flat compared to the discounted prices of BTOs, as they are sold at a premium in the market.

For those seeking even more freedom in their home purchase, private property, including resale ECs, is a viable option. Unlike HDB flats, there are no restrictions on income ceilings and even singles as young as 21 can make the big purchase. Just be cautious of the higher price tag and do your due diligence before diving in.

Should You Buy, Sell or Wait?

If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?

It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.

I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.

I can help you by:

  1. Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
  2. Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.

You May Also Like …


What Is Cash Over Valuation in HDB (COV)
All Buying Tips

What Is Cash Over Valuation in HDB (COV)

TLDR Cash Over Valuation (COV) in HDB resale flats occurs when the purchase price exceeds HDB's valuation. COV cannot be...
Read More
When a Property Seller Pulls Out of the Deal : What Now?
All Blog Posts Buying Tips

When a Property Seller Pulls Out of the Deal : What Now?

TLDR When a property deal is not yet formalized, sellers can withdraw without consequences. However, once an Option to Purchase...
Read More
Experience Singapore’s Best: 5 Districts with Unmatched Access to Shopping, Dining, and Entertainment
Mandarin Top 5

Experience Singapore’s Best: 5 Districts with Unmatched Access to Shopping, Dining, and Entertainment

Here are my top 5 picks for districts in Singapore that offer easy access to some of the best shopping...
Read More
Top 5 : Places to Learn About Singapore’s History
Mandarin Top 5

Top 5 : Places to Learn About Singapore’s History

Singapore, a bustling metropolis known for its modernity and multiculturalism, is also a treasure trove of rich history and heritage....
Read More
Top 5 Reasons : Why Singapore’s Property Market Is a Safe Haven for Investors in Uncertain Times – Insider Analysis!
Mandarin Top 5

Top 5 Reasons : Why Singapore’s Property Market Is a Safe Haven for Investors in Uncertain Times – Insider Analysis!

In today's uncertain global economic climate, investors are constantly on the lookout for safe havens to park their wealth. Amidst...
Read More
Is it Possible for the Government to Truly “Reclaim Your Home” in Singapore?
All Opinion

Is it Possible for the Government to Truly “Reclaim Your Home” in Singapore?

The Singaporean government possesses considerable authority to reclaim land, whether freehold or not, in accordance with the Land Acquisition Act....
Read More
Top 5 Best Green Spaces to Picnic in Singapore
Mandarin Top 5

Top 5 Best Green Spaces to Picnic in Singapore

Singapore, a bustling city-state known for its modern architecture and vibrant culture, is also home to numerous green spaces that...
Read More
Top 5 Art Galleries in Singapore for Contemporary Art
Mandarin Top 5

Top 5 Art Galleries in Singapore for Contemporary Art

Singapore, known for its modern architecture and vibrant culture, has a thriving art scene that showcases the best of contemporary...
Read More
Top 5 Seafood Restaurants in Singapore
Mandarin Top 5

Top 5 Seafood Restaurants in Singapore

Singapore, a melting pot of cultures and culinary delights, is well-known for its diverse food scene. With its strategic location...
Read More
Singapore’s Best Kept Real Estate Secrets: 5 Insider Tips for Savvy Investors
Mandarin Top 5

Singapore’s Best Kept Real Estate Secrets: 5 Insider Tips for Savvy Investors

Singapore's Best Kept Real Estate Secrets: 5 Insider Tips for Savvy Investors Here are 5 insider tips for those looking...
Read More
Why Some New Condo Releases Outperform Others
All Buying Tips Opinion

Why Some New Condo Releases Outperform Others

TLDR When it comes to the real estate market, familiarity plays a crucial role in the success of larger condo...
Read More
Decoding the HDB Classification: The New Prime, Plus & Standard – What It Means for Singaporeans
All Buying Tips Opinion

Decoding the HDB Classification: The New Prime, Plus & Standard – What It Means for Singaporeans

TLDR The National Day Rally 2023 introduced a new classification for HDB flats, replacing the old 'mature versus non-mature estates'...
Read More
Top 5 Overlooked Features that Buyers are Looking for in Singapore Property
Mandarin Top 5

Top 5 Overlooked Features that Buyers are Looking for in Singapore Property

The top 5 overlooked features that buyers are looking for in the Singapore real estate market. These are the overlooked...
Read More
Breaking Through the Stalemate of En Bloc Sales
All Blog Posts Opinion

Breaking Through the Stalemate of En Bloc Sales

TLDR The Singapore property market faces challenges with the ongoing en bloc stalemate. Lower success rates, higher development risks, and...
Read More
Reach Your Goal of Owning a Flat Before You Turn 35 : Money-Saving Strategies
All Blog Posts Buying Tips

Reach Your Goal of Owning a Flat Before You Turn 35 : Money-Saving Strategies

TLDR Jayson Ang provides valuable insights on money-saving strategies to achieve the goal of owning a flat before turning 35...
Read More
5 Things to Know About the Singapore Property Tax System
Mandarin Top 5

5 Things to Know About the Singapore Property Tax System

5 Things to Know About the Singapore Property Tax System Here are 5 things you need to know about the...
Read More
Want To Buy A Property? Read Me First!
All Buying Tips

Want To Buy A Property? Read Me First!

TLDR Understanding the key factors involved in buying property in Singapore is crucial for making informed decisions. Consider your investment...
Read More
5 Risks Upgraders Should Be Aware of To Avoid Financial Troubles When Progressing Their Property
All Blog Posts Buying Tips

5 Risks Upgraders Should Be Aware of To Avoid Financial Troubles When Progressing Their Property

TLDR The article delves into the intricacies of property asset progression in Singapore's real estate market. It highlights the risks...
Read More
Pitfalls of Owning a Boutique Condo: 5 Insider Insights You’ll Wish You Knew Earlier
All Buying Tips Opinion

Pitfalls of Owning a Boutique Condo: 5 Insider Insights You’ll Wish You Knew Earlier

TLDR When considering boutique condos, be mindful of potential drawbacks such as dominating families influencing rules, lack of privacy due...
Read More
Top 5 : Best Laser Tag Arenas in Singapore
Mandarin Top 5

Top 5 : Best Laser Tag Arenas in Singapore

Laser tag has become an increasingly popular activity in Singapore, offering adrenaline-pumping experiences for people of all ages. This exciting...
Read More
1 2 3 29

Compare Listings