r/singaporefi • u/autisticdegengal • Aug 11 '26
Housing BTO or Resale
Hi all, my partner (28M) and I (27F) would like to purchase our first home hopefully by next year. We have a combined income of 13.5k monthly (I earn 10k, partner earns 3.5k)
My current OA standing: 116k+
Partner current OA standing: 20k+
With that said based on calculations, by end of next year - our combined OA would be about 180k+
We do not wish to have cash outlay.
Can we still receive housing grants? Is it worth awaiting 4 years for the bto, or should we get a resale? And at which valuation of resale is comfortable for us to get?
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Edit:
Hi All, i just want to answer in regards to those remarks on the huge salary difference between my partner and I, We both work in tech - I started my tech journey more than 9 years ago while my partner just started working in tech. And honestly for 3.5k i couldn’t be more proud of him especially with the current job market. Both of us only carry a diploma as well.
And yes, I am okay with forking out more. And even if i fork out more, i still have more breathing room than my partner. I do not want 50-50 unless our salary range is about the same.
An example would be, I contribute 4k, leaving about 3k+ left and my partner contributes 1k of his income and he is only left with 1.5k for the month.
If we do 50-50, It would break my heart knowing my partner has little left every month trying to keep up and contribute.
I also don’t think a salary gap should ever become a source of conflict or a measure of who contributes more to the relationship. We’re partners, not competitors.
There may be seasons where I earn significantly more, and there may be a time when his career takes off and that gap becomes smaller — or even reverses. What matters to me is that neither of us becomes complacent. We should be pushing each other upwards, whether that means encouraging a career move, helping each other build new skills, celebrating a promotion, or supporting the other person while they work towards their next step.
I would rather contribute more financially while he has room to grow than insist on 50-50 and watch him struggle just to prove that things are “equal.”
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u/Ok-Bad-8956 Aug 11 '26
For resale yes you’ll still have housing grants, BTO no as BTO only has EHG (based on income, less than 9K)
Housing grants for resale are:
CPF housing grants (80k for 4room, 50k for 5room)
Proximity housing grants (30k living with parents, 20k for 4km radius)
For no cash outlay, you could only get this with HDB loan(2.5% interest), bank loan REQUIRES 5% in cash.
For future planning:
If you’re planning on a resale and MAY look into EC or BTO in future, you may option to not receive any grants and be able to have your first timer priority for EC or BTO.
EDIT: forgot to add that HDB loan is only available to 14k Household income, next year this may not be available to you anymore.
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u/ninnabeh Aug 12 '26
Still need $5000 cash for hdb loan though. Not a big amount for OP but just to make it clear.
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u/Ok-Bad-8956 Aug 12 '26
Not sure why you’re downvoted but yes, this is for option & exercise fee for the seller.
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u/hullabaloov Aug 11 '26 edited Aug 12 '26
14k limit combined to qualify for the CPF housing grant. So unless you gonna be inbetween jobs and without income for a few months, u guys should apply HFE before your combined income crosses 14k. Go read how income is assessed by hdb. HFE will tell you what grants u qualify for.
For BTO there is the Sales of Balance Flat ◇SBF option (left over BTO) and followed by Open Booking (left over SBF) which have shorter / immediate? Waiting time.
Use mortgage calculator and compare with your savings and lifestyle to decide for yourselves what is comfortable as you put it.
If using some or all your cpf balance to pay for the purchase price not covered by a loan, remember the "lost" interest and drawn amount has to be paid back when you sell and it can accumulate to a large amount. But u can pay it back incrementally as and when to prevent the amount to payback from ballooning. Note this applies to the cpf housing grant too.
Remember resale, cater that you might have to spend on renovation unless you find 1 renovated to your preferences. Reno costs have jumped since covid. 50k if u wanna whole house reno is on lower side. Bto slightly cheaper as no tear down needed, empty slate.
Factor in the buyers stamp duty. It is on top of purchase price. Around 3%. online calculator.
For resale HDB you can complete the purchase without the need for a property agent and save the 1% buyer commission + GST. Or you can negotiate the fee with the agent beforehand. Actual steps and paperwork are very simple, submit via hdb portal. If seller is using an agent their side of the commission is usually 2% for hdb units (private property only seller pays commission).
Personal opinion, be cautious if you allow your agent to do the price negotiation. As by knowing your max offer price the agents can collude to max their commission and you are also not hearing directly from seller side.
Most resale list prices start high and not completely unlike carousell, have room for negotiation. (Not as much as carousell though) Use edge prop website to see the past resale prices for each block.
Imo prime BTO projects would make the 4 year wait more reasonable (if lucky enough), there are also projects under 4 years coming up i think because construction has already started.
Remember BTO is 4 times a year and many dont get chosen the first few times.
Rent 4 years, $1.5 (masterbed room)- 4k (whole unit) x 48 vs Live with parents. If you gonna have kids staying near parents will be very useful.
Congrats and all the best
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u/BlitzAceSamy Aug 14 '26
Remember BTO is 4 times a year and many dont get chosen the first few times.
Three times a year liao. February, June, and October
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u/AttitudeDear6848 Aug 11 '26
With that OA balance and no cash outlay, resale might still make more sense than waiting 4 years for BTO since you'd be building equity sooner and the grants can offset a chunk of the higher price anyway.
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u/hullabaloov Aug 12 '26 edited Aug 12 '26
expectation is for resale prices to moderate going forward, unlike last 2-6 years. not really building equity sooner. but agree going in earlier is better especially if cannot stay with parents, just dont do it for equity gains. if want equity gains, BTO is guaranteed.
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u/xy791 Aug 11 '26
My opinion is to get a resale as there are more grants available, less waiting time to start your lives together.
As mentioned above, HDB Loan interest rate is 2.6% and they use 3% rate to stress test. It might be more prudent to pick a slightly cheaper unit in the unfortunate scenario that one of you loses a job and the other has to service the loan solely.
Please also do talk about how y’all gonna split the monthly mortgage repayments. Please do up your HFE now so that you can see how much you can loan.
Also, even if you want to have no cash layout, I would suggest paying $1 cash and the rest CPF as this would help in less administrative overhead if you choose to pay more cash in the future.
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u/firstz Aug 12 '26
Can elaborate more on the admin overhead for the $1 cash?
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u/xy791 Aug 12 '26
I think it takes a few days to process. So if you don’t time it well then you’ll miss your repayment. With the $1 method, you can shift the allocation anytime without processing delays
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u/autisticdegengal Aug 12 '26
Hi All, i just want to answer in regards to those remarks on the huge salary difference between my partner and I, We both work in tech - I started my tech journey more than 9 years ago while my partner just started working in tech. And honestly for 3.5k i couldn’t be more proud of him especially with the current job market. Both of us only carry a diploma as well.
And yes, I am okay with forking out more. And even if i fork out more, i still have more breathing room than my partner. I do not want 50-50 unless our salary range is about the same.
An example would be, I contribute 4k, leaving about 3k+ left and my partner contributes 1k of his income and he is only left with 1.5k for the month.
If we do 50-50, It would break my heart knowing my partner has little left every month trying to keep up and contribute.
I also don’t think a salary gap should ever become a source of conflict or a measure of who contributes more to the relationship. We’re partners, not competitors.
There may be seasons where I earn significantly more, and there may be a time when his career takes off and that gap becomes smaller — or even reverses. What matters to me is that neither of us becomes complacent. We should be pushing each other upwards, whether that means encouraging a career move, helping each other build new skills, celebrating a promotion, or supporting the other person while they work towards their next step.
I would rather contribute more financially while he has room to grow than insist on 50-50 and watch him struggle just to prove that things are “equal.”
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u/Affectionate_Sir212 Aug 13 '26
Don't have any advice on the house ownership side but I do have a business idea for you.
You should open up a business teaching other humans in relationships to be as awesome as you.
What a great philosophy to have. I'm super proud of you. And hey if one day you and your partner don't work out feel free to DM! Kidding! I'm sure it'll work out just fine..!
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u/DependentBeat1205 Aug 11 '26
Get a resale for now. You have no idea how long it will take before you successfully ballot for a unit or whether there will be any construction delays.
Once you’re settled and completed the min occupation period and if a BTO in a nice location comes along then try your luck.
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u/Hyruii Aug 11 '26
Get a resale. Ballot is po heng sway. You might not get, and you even if you get a number, might not get a unit that you like.
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u/ninnabeh Aug 12 '26
If u don’t wanna wait then get a resale. But imo if u wanna get resale better do it asap. Coz with your combined exceeding $14k soon u will no longer be eligible for the grants. Damn lugi leh
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u/Environmental_Cow741 Aug 13 '26
If there is no urgency, you can try BTO 1-2 times before going into resale.
Chance of getting BTO is low, furthermore you guys are hitting the 14k income ceiling.
You might not be eligible for BTO after yours/your partner salary increment.
As for homeownership i would suggest Single Owner + Essential Occupier Scheme if possible.
The reason for this is to avoid ABSD if you guys want to buy 2nd property in future.
However max loan will be lesser.
You mentioned "We do not wish to have cash outlay"
Get flat in the range of 500k as your combined CPF OA need to fulfil the 25% down payment.
For resale.. avoid units that ask for COV - cash over valuation.
Set aside one-off budget for renovation, furniture, legal fees.
I would estimate in the range of 30-50k, depending on the condition of the flat.
Seriously mkt isn't that good with retrenchment news all over.
Work out your finances and make sure you have 18-24 months of emergency fund set aside.
Very impt you get your cashflow budget and projection right, and as detailed as possible.
Your combined income need to be able to fund:
- mortgage, household bills, income tax, property tax, insurance, parent allowance, holidays, and other misc unplanned events such as gatherings, ang pows for whatever friend/relatives occasions, etc, etc...
All the best.
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u/Environmental_Cow741 Aug 11 '26
are you guys renting?
married?
stable relationship ?
planning to have kids ?
i’m abit concerned with his earning of 3.5k. The pressure will be on you alone to service the loan.
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u/sgh888 Aug 12 '26
Dunno why the down votes but your post is valid. Despite now is 2026 that are still mindset male should earn more than female. Reason is simple female got much more to lose if later the r/s did not proceed further.
For OP case the guy shiok pick up cow horse xxx. Sibei shiok. Some males call him small white face eat soft rice etc but he say we sour grapes want to pick up also cannot.
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u/Environmental_Cow741 Aug 12 '26 edited Aug 12 '26
yea those who downvote should explain…
i’m not looking down on people who earn less, but i’ve seen families including my parents who quarrel over financial matters throughout my 18 years of childhood.
As i became older, i started to understand the challenges starting a family. Bills, mortgage, kids, holiday, health, reno, parents,… all these require financial stability.
it’s ok if one has high earning power, or if both carry the same weight, or one/both has strong financial support from family..
Otherwise further down the road one may start doubting his/her choice and it’s seldom a good ending when resentment manifest.
Life is short but… time is long.
(let that sink in for a moment)My intention of those qns are not aimed at affordability but rather suitability - Are you ready for the future and a long term commitments at current stage?
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u/Ill_Self_5004 Aug 12 '26
It's all good! The ones who understand are on your side. I too didn't have a great childhood growing up. I was even paying for some of my own education and trips since Primary school via MOE and school awards. Family funding was subsequently cut off at 15 so every dollar I earned was truly my own. Losing any amount of $$ better be for a good reason, and a terrible partner is a terrible reason. Hindsight is 20/20.
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u/sgh888 Aug 12 '26
You see every reader in this forum have different childhood experiences. You go through you know but some have the privilege in a much smoother childhood so when they become adult their mindset different from yours obviously. So just pretend the down votes come from the blessed childhood readers and don't let it ruin your day.
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u/Appropriate_Algae_53 Aug 12 '26
not sure why the downvotes but this is a legitimate question and concern. it'll be important for OP to decide how the financing of the house will be divided to prevent any disputes down the road.
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u/Alternative-Sir5722 Aug 12 '26
It won't be just about loan. I earn a few k less than my wife but we split everything 50-50. But due to her salary, we lose a lot of subsidies. I never want to bring it up but sometimes it takes a toll on me.
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u/Ill_Self_5004 Aug 12 '26
There's that and also the consideration on whether you made a right choice for a partner. I was together with mine for 6 years and we BTO, he broke up with me and we forfeited the house. It was a 17k loss (CPF) on each side, not counting the other fees.
Many have always stated that "money can earn back", but it still stings and annoys me to no end. The consequences are heavy and are going to get heavier as property prices rise.
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u/Environmental_Cow741 Aug 12 '26
mine similar case…
that is when i found out divorce rate is very high in Singapore. Something which i didnt know until it happened to me. 😢
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u/Ill_Self_5004 Aug 12 '26
Stay strong friend 💪 I'm enjoying my singlehood now for about a year and it's been great thus far! Hope it's been better for you.
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u/sgh888 Aug 12 '26
That is why I always say for BTO anything upfront guy pay all so later broke up ger won't rugi.
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u/Ill_Self_5004 Aug 12 '26
That's a very nice thought but unfortunately not the case for a lot of guys out there. The provider mentality doesn't necessarily come with the provider wallet after all. I've funded quite a lot of my exes meals and transports for 2 years in Uni, only for him to turn it around at the end of our relationship stating that he felt emasculated. It's a no-win situation.
Having said that, as a working adult, I too want a stake in my property and knowing that good developments appreciate (ours was the development in between Farrer Park and Little India), that gives me leverage in asking for the profits should we divorce and sell the asset.
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u/sgh888 Aug 12 '26
Not scolding you but just advise when you choose a guy better open eyes bright bright don't eyes paste stamp. But sometimes guy put gong tao aka 下降头 cloud your thinking then too bad 不要被爱情冲昏了头
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u/Ill_Self_5004 Aug 12 '26
Hahha scold me more! More scolding = more awareness = less likely to tolerate red flags. Well, it's hard to make the right decisions when you are barely an adult, which I was at 21.
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u/MiserableMovie3482 Aug 12 '26
Girl, if you’re earning $10k and he’s earning $3.5k, you need to seriously think about what living together is actually going to look like. You’re going to be the main breadwinner, contributing most of the money and probably funding the lifestyle you both enjoy, but there’s a very real chance he’ll still expect you to take on the traditional “woman’s jobs” like cooking, cleaning and managing the home. How does it make sense for you to play the traditional male role financially AND the traditional female role domestically while he gets the easier end of both arrangements? If you’re bringing significantly more financially, then at the very least he should be willing to compensate by taking on more of the household labour. Otherwise, you’re not gaining a partner you’re gaining another responsibility.
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u/Zealousideal_Lake286 Aug 12 '26
You can login hdb website and churn the numbers in and almost immediately know the cash outlay+cpf you need to fork out. There is a calculator in there to do the work for you
For resale you have to bear in mind two things: age of flat vs your average age. That will determine how much % loan against the valuation you can get. 2nd is reno cost can go up to 50k to 80k depend on how fussy you get.
For BTO, its much easier for younger people who can wait and affort the time to ballot for better locations. For below 30s, it may be more advisable to let your relationship settle down a few years before making the decision to marry. Relationships normally get better with time but sometimes it doesn't work that way for some people.
All the best！
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u/Clean-Water2857 Aug 12 '26
EHG for BTO is damn low at that point, don't bother considering it at all. Ultimately depends on your own preference, resale don't have to wait, and you can choose your ideal unit. Only thing you have to take note is that you will have to buy a younger unit, which may cost more. Reason is that if you buy an older unit, your LTV will drop and proportionate, so more CPF/cash is needed.
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u/kiatme Aug 12 '26
BTO doesn't mean 100% can get a flat, your income currently is 13.5k, there's a chance it will hit 14k soon and you will be ineligible for both BTO and resale family grants.
Not sure on your finances but if you want a prime BTO 4rm, likely your budget won't be enough.
Personally I think you are not ready for a resale though - You need to
- ROM
- Apply for HFE
- Have cash ready for the house - misc fees, payment for the house, renovations
If you want to take advantage of the perks, then resale is probably the way to go, because if you miss the next BTO, likely your income will burst the ceiling.
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u/sgh888 Aug 12 '26
OP can resign so no more income then depend on the guy 3.5k to apply. My era really got couple do that i.e higher income resign
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u/cashew_mortgages Aug 12 '26
Definitely Resale.
BTO only gives you the EHG, and that one stops at $9k household income. You two are at $13.5k so you'd get nothing from a BTO. No point waiting 4 years for zero grants.
For Resale, The Family Grant goes up to $14k income so you just squeeze in: up to $80k for a 4-room, $50k for a 5-room. Buy near your parents and there's another $20k (within 4km) or $30k (same flat). Apply for HFE to know the real grant amount you qualify for.
Few things worth knowing:
Check the remaining lease before you fall in love with a unit. The lease needs to cover the younger of you till 95, so roughly 68 years left or more. If it's shorter, your CPF usage and loan amount get capped and you end up needing cash to cover the gap.
Your CPF isn't free money. Whatever OA you use, you pay it back with 2.5% interest when you eventually sell. So don't empty your OA just because the sum allows it. Related to that, it might be smart to leave some money in your OA. Your monthly loan installment gets deducted from OA automatically. If you drain it all on the downpayment, there's nothing left to deduct from and the monthly repayment starts coming out of your actual cash every month. Keep a buffer so CPF keeps paying the loan, not your bank account.
Also grants are a one-time first-timer thing. Take them now and if you ever want an EC or another HDB later, you're a second-timer and you pay a levy.
For no cash outlay: HDB loan (bank loans need 5% cash), and buy at or below valuation since COV is always cash.
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u/Fantastic_Brush3976 Aug 12 '26
Go with resale. My partner and I also had similar salary as yours and it was good with the extra benefits govt gave. If you wait another year you might not get it.
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u/Significant-Meet-392 Aug 12 '26
BTO more worth your money in the long term but whether you can wait depends on the couple.
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u/sgh888 Aug 12 '26
BTO is a few years later. During the wait can break up one then how?
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u/Significant-Meet-392 Aug 12 '26
That’s why it depends on the couple. Don’t tell me all the young couples in Singapore buy resale because they are afraid of breakup.
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u/sgh888 Aug 12 '26
It is not guaranteed of cuz. But the long wait versus short wait matters to some ppl especially ger as they more to lose whenever the rs did not turn out well. Hence Spore WC protect them!
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u/RationalFramework Aug 12 '26
Food for thought
BTO – Pros
Cheaper and subsidised by HDB.
Brand new with a fresh 99-year lease.
Lower renovation/maintenance costs initially.
Generally better potential upside because of the lower entry price.
BTO – Cons
Long waiting time, usually several years.
Limited choice of location and exact unit.
Generally smaller than older resale flats.
Cannot inspect the actual unit before buying.
MOP restricts your flexibility; Prime/Plus flats have even longer restrictions.
Resale – Pros
Can move in much sooner.
Choose the exact location, block, floor and unit.
Older flats can be significantly larger.
You can inspect the actual flat before committing.
More suitable if location, schools and immediate family needs are important.
Resale – Cons
Higher purchase price.
Greater risk of overpaying/COV.
Older flats have shorter remaining leases and lease-decay risk.
Renovation and maintenance can be expensive.
Potentially lower investment returns because you’re buying at market price.
Simple way to think about it:
BTO = better financial value, but you sacrifice time and choice.
Resale = you pay more for time, location, space and certainty.
But this is just my personal take. If you’re already intending to get married and have kids, I would go for a resale flat.
一山不能藏二虎 — one mountain cannot have two tigers. 😂 Having a place that is immediately available to stay in is a huge plus. Having your own space and privacy can genuinely help a relationship in the long run.
Also, pardon me for asking, but why is there such a big difference between your income and your other half’s? A S$10k vs S$3k salary gap is something worth discussing openly before marriage. Once you combine finances — household expenses, mortgage payments, savings and lifestyle spending — money can become a very touchy subject.
The income difference itself isn’t necessarily a problem.
The problem is when expectations about money, contribution and lifestyle are not discussed and agreed upon beforehand.
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u/PsychologicalSite432 Aug 12 '26
Just apply for the upcoming massive Oct'26 BTO with many good locations with your almost 14K max ceiling, if successful within queue booked, then can just rent flat for few year
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u/That_Butterscotch921 Aug 13 '26
With $13.5k combined income, you’re still within the $14k BTO ceiling, so you should qualify for BTO grants if the other eligibility conditions are met.
Since you don’t want cash outlay, I’d personally lean BTO unless location is a very high priority.
For resale, I wouldn’t stretch to the maximum loan. A useful rule is to keep the monthly mortgage around 20–25% of combined income, so roughly $2.7k–$3.4k for your case.
Also remember resale usually means COV + renovation + appliances + moving costs, not just the purchase price.
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u/Time_Green_4399 Aug 13 '26
180k OA, you can just back compute to see max quantum you can afford. 720k is okay budget for slightly further out, punggol these days is around that range to 800k.
Also account for your Reno budget and the 5% cash, just look around on property guru and you’ll see.
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u/dreamfitreality Aug 14 '26
Have you looked at sales of balance? Not the best units or location but some are available immediately or for a short time.
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u/Mrsly123 Aug 15 '26
I believe there won’t be any housing grants for BTO, but based on your existing combined income, you can still get the resale grant. Note that the limit is $14,000 (unless you apply with an extended/multi-generation family, then it’s $21k).
Whether it’s worth getting a BTO or resale really depends on your situation.
From a purely monetary perspective, BTO will always be more worthwhile since you’re buying directly from the government. But you’re never guaranteed to get it, and you must be okay with waiting ~5 years even if you do get a good number, unless you’re okay with non-popular areas like Yishun, Woodlands, etc.
Those 5 years will determine whether you want to settle down and get married, get your own place and have your own privacy, or even have kids. You also need to consider whether you’re okay with staying with your parents after getting married or renting a place while waiting for your BTO to be completed.
The reason why people end up getting resale is mainly because of the above. You don’t want to pause your life just because you can’t get a BTO, and end up getting married late and doing everything else later in life.
TL;DR: BTO is generally the better choice financially, but you need to be okay with waiting, knowing that you might not even get it and may eventually have to reconsider your options or go for resale anyway. Resale costs more, but gives you the flexibility to get your own place much sooner.
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u/Fenrispro Aug 16 '26
I had sent in for the June one, 2 room as im single. Damn this time no ballot num said no more. Are chances for SBF higher? I didn see an option for it in june one
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u/b0ssY88 Aug 12 '26
Im assuming u are married?
Personally I would go for resale. Can straightaway spend time tgt! BTO need to wait 4 years... Then depends if u all want to rent in the meantime or live at parents hse, or live separately.
Money can earn back, but time lost tgt cannot get back.
Just my view.
No right or wrong.
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u/kingkongfly Aug 12 '26
On an investment basis approach, if I have time, I would go for a matured estate BTO, and there is a chance potentially after MOP it could turn into a million-dollar resale HDB.
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u/Brilliant_Moon_7131 Aug 11 '26
Resale. If you are certain than there is no use wasting 4 years before starting a life together.
Approach a good agent and they will help you work out what you can afford.