Currently, at least one individual in a couple must have fulfilled a minimum of 12 months of continuous employment to qualify for a housing grant. Couples will then also have to wait another 4 years for their first flat to be ready. The income history scheme only serves as an obstacle to young couples looking to start their own family.
However, young couples eager to buy their first flat no longer need to delay their plans. The Housing Board is allowing a group of people aged at least 21 to apply for grants at least 1 year earlier.
The assessment of income for housing loans and grants will now be changed to just before the Collection of Keys. The previous judging criterion was using the Time of Application. This new scheme will be pushed out at the next sales exercise in May.
Ms Stefanie Mok (above) is happy about this new policy. She was previously not eligible for the application for a flat as she had only started working for 7 months. Now she can apply for a flat earlier and will be able to enjoy her own home sooner.
However, there appears to be some risk in this move.
“How can they be said to have ‘carefully considered’ buying a flat if they have not started to earn their own keep?”
-International Property Advisor’s chief executive Ku Swee Yong. He is worried that this may result in young couples taking greater financial risks.