FIRST-TIME HDB APPLICANTS

Dr Teo Ho Pin asked the Minister for National Development whether the Housing and Development Board will consider waiving the forfeiture of the $5,000 deposit of a first-time HDB applicant who opts to purchase a resale flat instead of a new flat while queuing for a new flat.

Mr Lim Hng Kiang: In view of the increasing number of cancellations under the Fianc,/Fianc,e Scheme, the registration deposit has been imposed to deter frivolous applications. Applicants who cancel their applications will have their registration deposit forfeited.

The CPF Housing Grant is provided by the Government for first-time HDB applicants who decide to buy a resale flat or an Executive Condominium instead of a new HDB flat. It offers an alternative for young couples who are in need of a home to set up their families. When these applicants opt to use the CPF Housing Grant, their application to purchase a new flat will be cancelled. This will benefit other applicants on the queue as their waiting time for a new flat will be shortened. Therefore, for first-time HDB applicants under the Fianc,/Fianc,e Scheme, HDB will not forfeit their registration deposit if they subsequently cancel their application to buy a new HDB flat and opt to take up the CPF Housing Grant.