Single and looking to purchase a New EC ?
Aside from BTOs, New ECs purchased directly from developers at a subsidised price is one of the surest ways to make money in real estate. But you would have already known, the odds are not in your favour when it comes to real estate as a Single living in Singapore.
Most government subsidised housing schemes are built to promote family formation. But for the relentless Singles, there are always notches that you can exploit to level the playing field.
And the Joint Singles Scheme is a perfect example.
What is the EC Joint Singles Scheme ?
To qualify for the application of a new EC, you will need to fall into one of the four schemes listed below.
- Public Scheme – for married couple and families with child
- Fiance Fiancee Scheme – for couples planning to get married
- Orphan Scheme
- Joint Singles Scheme
Out of the four schemes listed Joint Single Scheme is the only scheme that allows Singles to be eligible for a New EC.
What are the qualifying criteria for a Joint Singles Scheme ?
There are several hurdles to cross when using the Joint Singles Scheme to apply for a New EC. Let’s tackle it systematically, akin to ticking boxes off a checklist to keep things structured and logical.
#1 – You will need to rope in other Singles to join you in the application
The basic construct of the Joint Singles Scheme requires you to jointly apply with up to 3 Singles. Including yourself, we are looking at a minimum application pool of 2 Singles and maximum application of 4 Singles.
The official intent behind this scheme is to allow like minded Singles to gain access to accessible housing, while living together. I.e the government’s way of being inclusive.
Who qualifies as a Singles Co-applicant in the Joint Singles Scheme
- Single (unmarried, divorce or widowed)
- Singapore Citizen
- At least 35 years old
Let’s take this chance to establish the following points.
For Single PR or Singles under 35 years of age, apologies that the Joint Singles Scheme is not going to work for you.
Single co-applicant need not be a family member
It is interesting to note that Single Joint applicants in the EC joint singles scheme need not be someone related to you. So your options for prospecting a joint applicant can extend beyond your siblings.
Ideas on who you can include as a Joint Applicant
To expand on the point, it helps to think of the joint applicant as a co-investor as well.
And the candidate that you can prospect to include as joint applicant includes
- Sibling that are Singles
- Like minded friends who are Singles
Minimum 8 years commitment for all joint applicants.
It is important to note that all applicants must be ready to be locked down to this property commitment for a minimum time frame of 8 years.
This 8 years comprises 3 years construction time and another 5 years to fulfil the minimum occupancy period before any of you can free yourself from the commitment.
Shareholding structure you can adopt for the Joint Singles Scheme
It would be helpful to cover the shareholding structure that you can adopt to fairly account for individual shares in the property for each Single co-applicant in the Joint Singles Scheme.
Unlike couples or families applying under the fiance/fiancee scheme or the public scheme, they can easily structure their share ownership under a 50-50 joint tenancy structure.
Due to the fact that, their financial contribution is largely equal. In addition their interest is also governed by the Women’s charter, under the worst case scenario of a divorce.
Consider the Tenancy in Common Structure for EC Joint Singles Scheme
For Singles applying under the Joint Singles Scheme, there could be a situation in which financial contribution is unequal.
A Single with more savings can be contributing more to the property than the other. Or each Single may have a different investment or commitment time frame. Adopting the tenancy in common shareholding structure addresses these issues.
You will be able to allocate a different proportion of shares in accordance to the financial contribution of each Singles.
And after fulfilling the minimum 5 year occupancy period, if there are differing opinions on selling the property as a whole. The Single joint owner that is looking to exit earlier, can sell his partial share to another buyer at the market valuation price via a part purchase / sale transaction.
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Before you commit the next 5 mins of your life towards reading this article, it helps to find out who’s behind the keyboard.
We are a team of specialist realtors specialising in helping our readers research and shortlist investment properties for both homestay and investment objectives.
Having noticed an information gap towards helping investment minded Single buy and select the right property.
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#2 – Not surpassing the EC income ceiling
Checklist item no 2, assuming you found your joint applicant. It is now time to ensure that you pass hurdle no 2.
The total monthly “household” income between you and your joint applicants must not exceed $16,000.
Let’s further elaborate on this to clear some questions that you could have in mind.
Does performance bonus form part of my monthly income ?
No, any variable bonus will not form part of your monthly income.
So if you earn a 10k monthly income and receive a 5 months variable bonus at the end of the year. Kudos to you, only the 10k fixed monthly income will be included in the income ceiling assessment.
Similarly annual wage supplement is excluded from income assessment as well.
What if you earn a commission based, variable income or if you are self employed ?
This is applicable to all Singles who are freelancer, in business development or are self employed. Your income assessment will be based on the average of your 12 months monthly income.
What if you or your Single joint applicant is unemployed ?
So if you are a Single that is unemployed, in between jobs or simply taking some time off to enjoy life.
Income assessment will be based on your past 12 months salary, and the average over the 12 months will be accounted as the average household income for assessment.
#3 – Ownership of Property
On to checklist item no #3.
No private property ownership during application
You or your Single co-applicant must not currently own any private property locally or overseas
Have not sold any private property within 30 months
Next, You or your Single co-applicant have not sold any private property locally or overseas.
if You or your single co applicant have sold a private condo or resale EC. You will have to serve a wait out period of 30 months before being eligible for EC application
Have not purchase HDB subsidised housing more than once before application
Third, You or your Single co-applicant have not purchased any HDB subsidised housing more than once.
Expanding on this point, HDB subsidised housing comprises the following.
- Resale HDB with purchased with HDB grants – this includes any CPF housing grant, enhanced CPF housing grant and proximity grant
- DBSS from developer
- BTO
- Sales of Balance Flat
- New EC
Can you still apply under the Joint Singles Scheme if you previously own HDB subsidised housing ?
So if you previously own a resale HDB with grant, DBSS or a New EC, you are still eligible to apply for a new EC.
But if you previously own a resale HDB with grant and also a DBSS or BTO purchased directly from the developer. You are deemed as a third time applicant and will not be eligible to apply under the joint singles scheme.
As a side note, being listed as an essentially occupier will count as ownership as well.
And note that, 70% of the EC units are set aside for first timer applicants during the initial launch period.
What if you or your joint applicant currently own a resale HDB ?
You will have to dispose of your resale HDB within 6 months of the TOP for your new EC.
And note no ABSD is required, unlike private condo if you were to purchase a property before selling your current property you will have to pay a 20% ABSD upfront first and claim for a refund after selling your existing property.
#4 – Affording the EC
To remain inline with the article’s focus, we will not dive into too much detail on affordability.
Essentially you and your Single joint applicants will need to fund the EC’s purchase by applying the following funding structure.
Funding the EC itself
- 5% Cash – booking fee on the day of balloting
- 15% Cash or CPF – upon signing of sales and purchase document
- 5% Cash or CPF when construction of foundation starts – 8-9 months from the signing of S&P
- Remaining 75% via bank loan and paid under the progressive payment scheme as follow
| Stage of Construction Completion | % of Purchase Price |
| Booking of Unit | 5% Cash |
| Upon signing S&P Agreement or within 8-weeks from date of Option | 15% Cash or CPF |
| Completion of foundation work | 5% Cash or CPF 5% Cash or CPF or Loan |
| Completion of reinforced concrete framework | 10% Cash or CPF or Loan |
| Completion of partition walls | 5% Cash or CPF or Loan |
| Completion of roofing | 5% Cash or CPF or Loan |
| Completion of door frames, windows frames, electrical wiring, internal plastering and plumbing work | 5% Cash or CPF or Loan |
| Completion of car park, drains and roads serving the housing project | 5% Cash or CPF or Loan |
| Obtained Temporary Occupation Permit (TOP) | 25% Cash or CPF or Loan |
| Obtained Certificate of Statutory Completion (CSC) | 15% Cash or CPF or Loan |
Transactional Cost
You will also have to account for buyer stamp duty, legal fee, estimated at $3,000 and valuation fee, estimated at $600.
Buyer stamp duty rate as follow
| Purchase price/ Market Value | Rate in percentage for residential properties |
| First S$180,000 | 0.01 |
| Next S$180,000 | 0.02 |
| Next S$640,000 | 0.03 |
| Next S$500,000 | 0.04 |
| Next S$1,500,000 | 0.05 |
| Amount exceeding S$3,000,000 | 0.06 |
For more insights on how singles can afford a private property refer to article ” Can I afford a condo in Singapore as a Single ? – Calculation with Salary Requirement “
Conditions after purchasing EC under the Joint Singles Scheme
Fulfilling 5 year minimum occupation period
One of the mandatory criteria you will need to fulfil once you have purchased your new EC is to complete the 5 year minimum occupancy period.
Renting out the unit
During this 5 year MOP period, you and your joint applicants are to do the following.
live in the EC for 5 years
- You are not allowed to rent out the entire unit, but renting out rooms is permissible
- You will simply need to register the renting of a room with HDB and notify HDB on renewal and termination of contract.
Selling the Unit or Decoupling
You are not allowed to sell the EC or execute under part sale of share, also known as decoupling property.
Essentially this meant that both you and your joint applicants must retain ownership over the EC for the next 5 years.
Buying another property
You and your joint applicants are also not allowed to purchase another property or be listed as an occupier in another HDB flat.
Paying Resale Levy
If you or your Single joint applicant previously own a HDB subsidised flat, falling into the definition highlighted above. You will have to pay a resale levy in accordance to the rate table below
For flats bought between 19 May 1997 to 3 March 2006
| First Subsidised Housing Type | Households | Single Grant recipients |
| 2-room flat | 0.1 | 0.05 |
| 3-room flat | 0.2 | 0.1 |
| 4-room flat | 0.225 | 0.1125 |
| 5-room flat & Executive flat | 0.25 | 0.125 |
For flats bought after 3 Mar 2006
| First Subsidised Housing Type | Households | Single Grant recipients |
| 2-room flat | $15,000 | $7,500 |
| 3-room flat | $30,000 | $15,000 |
| 4-room flat | $40,000 | $20,000 |
| 5-room flat | $45,000 | $22,500 |
| Executive flat | $50,000 | $25,000 |
| Executive Condominium | $55,000 | Not applicable |
Disadvantages of the EC Joint Singles Scheme
In this section we will highlight the disadvantages of the EC joint singles scheme.
Mainly two key drawbacks to be noted.
You will not be eligible to apply for dual-key EC units
Only multi generation families, couples living with parents can apply for dual key units under the fiance / fiancee scheme or the Public Scheme
You will not be eligible for CPF housing grant
Couples applying under the Public Scheme or Fiance/Fiancee Scheme are eligible for HDB CPF grant of up to $30,000 if household income falls below $12,000.
Turnkey solution to put thoughts into action – Decoupling Expertise
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Our suite of consulting service include
Singles home finances
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- Helping Singles in IPA application
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Singles real estate strategy
- Property research and shortlisting
- Location selection
- Unit type selection
- Layout review for unit selected
- Negotiation and purchase of unit
Singles real estate planning
- HDB or private condo consideration
- Boutique condo or mainstream development consideration
- Solo purchase or joint purchase with other Singles
- First property flip strategy
- Second property flip strategy
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