Executive Condominiums (ECs) are a popular housing option for middle-income Singaporeans. ECs are strata-titled apartments that are built and sold by property developers to eligible Singaporean households. However, there are eligibility conditions and ownership restrictions that applicants must meet in the first 5 years.
At least one applicant must be a Singapore citizen, while one of them must be at least 21 years old. If applying under the Joint Singles Scheme, applicants must be at least 35 years old. The only aspect that differs among applicants is the income ceiling, which currently stands at S$16,000 and below. As a result, ECs appeal more to middle-income Singaporean families who cannot meet the income eligibility for Built-To-Order (BTO) flats due to the income cap.
Eligibility for ECs in Singapore is based on several factors, including age, citizenship, family nucleus, income, and property ownership. It is important to note that ECs are designed for own-stay, which means that buyers are required to occupy the unit for at least 5 years before they can sell it on the open market. In addition, buyers are not allowed to purchase any other property during the Minimum Occupation Period (MOP) of 5 years.
Eligibility Criteria for Executive Condo?
To qualify for the purchase of an Executive Condominium (EC) in Singapore, one must satisfy certain eligibility prerequisites. These conditions necessitate the applicant being a Singapore citizen or permanent resident, being at least 21 years of age, and having a family nucleus that satisfies the stipulations of the plan. The family nucleus encompasses the applicant, their spouse, and children. Additionally, the income ceiling for EC eligibility is SGD $16,000 per month for households with four or fewer members and SGD $18,000 per month for households with five or more members. Moreover, applicants must not have previously owned any private or overseas property in the preceding 30 months prior to applying for an EC. It is important to bear in mind that the eligibility standards for ECs may evolve with time, and it is advisable to examine the most up-to-date eligibility conditions before submitting an application.
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Eligibility Criteria for Executive Condo
Citizenship and Age
At least one applicant must be a Singapore citizen, while the other can be a Singapore Permanent Resident or a foreigner. The main applicant must be at least 21 years old, while the co-applicant must be at least 18 years old.
The applicants must form a family nucleus, which can include the following:
- Spouse and children (if any)
- Parents and siblings (if unmarried)
- Children under legal custody
Under the Joint Singles Scheme, two to four unrelated Singapore citizens can apply together.
The gross monthly household income of the applicants must not exceed S$16,000. This includes the income of all working individuals in the family nucleus.
Ownership of Private Property
The applicants and their spouses (if any) must not own any private property locally or overseas, or have disposed of any within the last 30 months before applying for an EC.
The applicants must list all family members who will be living in the EC as essential occupiers. They must also meet the eligibility conditions for buying an EC.
There are four special schemes available for purchasing an EC:
- Public Scheme
- Fiancé/Fiancée Scheme
- Orphans Scheme
- Joint Singles Scheme
The eligibility conditions for each scheme vary, and interested applicants should check the HDB website for more information.
Overall, the eligibility criteria for purchasing an Executive Condo in Singapore are strict and require careful consideration. Applicants must meet the income ceiling, citizenship, and family nucleus requirements, among others. They must also be aware of the special schemes available and the conditions that apply after purchasing an EC.
Financing an Executive Condo
When it comes to financing an Executive Condo (EC) in Singapore, there are a few options available. Here are some sub-sections to consider:
Unlike an HDB loan, a bank’s Loan-to-Value limit (LTV) for an EC is 75% of the property valuation or price (whichever is lower). This means that the buyer needs to fork out at least 25% from their own pocket for the EC down payment. Buyers can choose from a range of banks and financial institutions to apply for a loan.
The CPF Housing Grants for Executive Condominiums (EC) is a subsidy by the government for first-timer applicants to buy an EC. Two types of CPF Housing Grants are available for EC purchases from developers – Family Grants and Half-Housing Grants. You and any co-applicants must be eligible for the grant at the point of booking the EC.
The interest rate for an EC loan depends on the bank or financial institution that the buyer chooses. It is important to compare the interest rates offered by different banks and financial institutions before making a decision.
Conditions after Buying
There are eligibility conditions and ownership restrictions that apply to EC buyers in the first 5 years. For example, the buyer cannot sell the EC during this period, and the unit can only be sold to Singaporeans or Permanent Residents after the 5-year Minimum Occupation Period (MOP) is over. Buyers should be aware of these conditions before making a purchase.
Overall, financing an Executive Condo in Singapore requires careful planning and consideration of different factors such as bank loans, CPF usage, interest rates, and ownership restrictions. Buyers should also be aware of their income ceiling cap and eligibility conditions before applying for an EC.
Benefits of an Executive Condo
Cheaper than Private Condos
One of the main benefits of buying an Executive Condo (EC) in Singapore is that they are cheaper than private condos. This is because ECs are built and sold by private developers, but with government subsidies. Therefore, they are priced lower than private condos, making them a more affordable option for Singaporeans who want to own a home.
Facilities and Amenities
Another advantage of living in an EC is the facilities and amenities that come with it. ECs usually have a range of communal facilities, such as swimming pools, gyms, and clubhouses. These facilities are maintained by the property management team, so residents don’t have to worry about upkeep. Additionally, some EC projects are located near parks, schools, and shopping malls, making them a convenient and attractive option for families.
There are several EC projects currently available in Singapore, such as Parc Greenwich. These projects offer a range of unit sizes and layouts to cater to different needs and budgets. However, it’s important to note that ECs are subject to eligibility conditions and ownership restrictions in the first 5 years. For example, only Singaporeans and Singapore Permanent Residents are eligible to buy an EC, and there are income ceilings that buyers must meet.
First-timer applicants can also apply for CPF Housing Grants, such as the Family Grant and Half-Housing Grant, which can help to offset the cost of buying an EC. Second-timer applicants are not eligible for these grants and must pay a resale levy if they choose to buy an EC.
When buying an EC, buyers must sign a Sale and Purchase Agreement and an Undertaking, which outlines the rules and regulations of living in an EC. For example, buyers must occupy the EC for at least 5 years before they can sell it on the open market. Buyers who sell their EC before the 5-year Minimum Occupation Period (MOP) will have to pay a resale levy.
Overall, buying an EC in Singapore can be a good option for those who want to own a home but cannot afford a private condo. ECs offer a range of facilities and amenities, and there are several projects available to choose from. However, buyers must meet the eligibility conditions and follow the ownership restrictions, so it’s important to do research and understand the rules before making a purchase.