RES exam question on HDB Policies: Lin (SC) and her husband (also SC) purchase a 4-room HDB resale flat for $520,000 using…
Lin (SC) and her husband (also SC) purchase a 4-room HDB resale flat for $520,000 using an HDB Concessionary Loan. This is their first residential property. Which of the following statements are correct? (i) They pay 0% Additional Buyer's Stamp Duty (ABSD) as this is their first property (ii) Their HDB Concessionary Loan interest rate is pegged at the CPF Ordinary Account rate plus 0.1% per annum (iii) They are subject to a 5-year Minimum Occupation Period before they may sell the flat (iv) As HDB Concessionary Loan borrowers, they are NOT subject to the MAS Total Debt Servicing Ratio (TDSR) framework
- A(i), (ii) and (iii) only
- B(i) and (iii) only
- C(i), (ii), (iii) and (iv)
- D(ii), (iii) and (iv) only
Show answer & explanation
Answer
C. (i), (ii), (iii) and (iv)
Explanation
All four statements are correct. (i) A Singapore Citizen buying a first residential property pays 0% ABSD (IRAS, rates from 27 Apr 2023). (ii) The HDB Concessionary Loan rate is the CPF OA rate plus 0.1%, currently 2.5% + 0.1% = 2.6% (CPF Board and HDB, 1 Oct to 31 Dec 2026). (iii) A Standard or unclassified flat, which covers every resale flat on the market today, carries a 5-year MOP from legal completion (10 years for Plus and Prime flats). (iv) HDB loans are outside the MAS TDSR framework; HDB applies its own 30% Mortgage Servicing Ratio instead, while a bank loan for an HDB flat must meet both the 55% TDSR (MAS, from 16 Dec 2021) and the 30% MSR.
Study the concept behind this question: HDB Standard, Plus & Prime Flats (the New Classification Framework)
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