Help for elderly flat buyers
From May, eligible elderly flat buyers hoping to right-size will be allowed to defer their downpayment until key collection, said Minister for National Development Lawrence Wong yesterday as he introduced the Deferred Downpayment Scheme (DDS).
Currently, a downpayment is required when signing the lease about four months after booking the flat. With DDS, elderly home buyers will only need to pay stamp and legal fees when they sign the lease.
To be eligible, the home owner must be aged 55 years and above, and applying for a two-room flexi or three-room flat in a Build-To-Order or Sale of Balance Flats exercise.
Mr Wong also introduced the Temporary Loan Scheme (TLS), which will kick off today and will help elderly households bridge their finances while waiting for proceeds from the sale of their previous flat.
The temporary loan, to be disbursed after the first resale appointment for their existing flat, will be redeemed using net proceeds from the sale.
The loan amount will be based on what is needed to complete the purchase of their new flat, after taking into account their available Central Provident Fund savings.
The TLS will be extended to both elderly and non-elderly buyers who do not take a HDB housing loan for their new flat.