How to Buy a HDB Flat With A Foreign Spouse under the Non-Resident Spouse Scheme
How to Buy a HDB Flat With A Foreign Spouse under the Non-Resident Spouse Scheme
There are a little more hoops to jump through in order to purchase a HDB flat together with your spouse who is not a Citizen or PR. Data has shown that as of April 2022, almost 25% of Singaporean marriages in Singapore are to a foreign spouse! Although there might be a couple more steps and considerations before you are able to purchase a HDB flat as a Citizen plus Foreigner couple, here's a simple guide to what you need to know as of 2023.
Purchasing a HDB Resale Flat with a Foreign Spouse
For HDB resale properties, the purchase falls under the Non-Resident Spouse scheme (Previously known as a the Non-Citizen Spouse Scheme). The Singapore Citizen (SC) spouse must be at least 21 years old, and the foreign spouse must possess a Long-Term Visit Pass or a Work Pass (with a validity of at least six months from the application date). If the SC spouse is 35 years or older, the foreign spouse must have a Work Pass or Visit Pass.
Exceptions apply if there is a child who is a Singapore Citizen or Permanent Resident; in such cases, the family can form a nucleus under the Public Scheme, essentially allowing them the same privileges as regular Singaporean couples.
The restrictions vary based on whether you are interested in a new (Built To Order, or BTO) flat or a resale flat.
Buying a BTO Flat with a Foreign Spouse
Mixed-nationality couples are limited to purchasing 2-room flexi-flats in non-mature estates such as Bukit Batok, Bukit Panjang, Choa Chu Kang, Hougang, Jurong, Punggol, Sembawang, Sengkang, Tengah, Woodlands, and Yishun. Standard HDB eligibility criteria, including an income ceiling of $14,000 per month, a five-year Minimum Occupation Period (MOP), and not owning other properties locally or overseas, apply as well. However, there is no size, location or income ceiling restrictions for resale flats.
Buying an Executive Condo (EC) with a Foreign Spouse
You will not be eligible to purchase a non-privatized EC. Only ECs that have surpassed the 10 year mark can be considered a private property.
Available Grants When Buying with a Foreign Spouse
Under the Non-Resident Spouse scheme, two grants are available: the Enhanced Housing Grant (EHG) for singles and the Singles Grant. The amount of EHG you get depends on half of the average monthly household income. You will not be granted the EHG half your monthly household income exceeds $4,500. The Singles Grant is a fixed amount of $40,000 for the purchase of a 2- to 4-room resale flat or $25,000 for a 5-room or bigger resale flat. All standard grant restrictions still apply, requiring the SC to be at least 21 years old, a first-time applicant, and a minimum lease of 20 years remaining on the flat.
Your Foreign Spouse's Must be listed as an Essential Occupier
Your foreign spouse can only be listed as an essential occupier and not a co-owner. This means their income will not be taken into consideration and cannot be co-borrowers on the home loan. This will have implications on loan quantum and approval so extra planning and financial calculation is required to ensure prudence. They will also not have legal ownership rights to the property, even if they might be contributing to loan repayments or maintenance.
Understanding these intricacies is crucial for Singaporeans with foreign spouses looking to navigate the complex landscape of property ownership in the country. Even though it is slightly more complicated, purchasing your dream home with your loved one is still possible with good planning and strategy!
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