8 Things Singaporeans with Foreign Spouses Must Know When Buying Property

 
For Singaporeans married to a foreign spouse, purchasing property in Singapore can be an exciting yet complex journey. Whether you’re eyeing a Build-to-Order (BTO) flat, a resale HDB, or even a private property, there are important rules and exceptions you must navigate. Here’s a detailed guide covering everything you need to know as a Singaporean-foreigner couple looking to buy a home.

1. Eligibility for Resale HDB Flats

Buying a resale HDB flat is one of the most straightforward options for Singaporeans with a foreign spouse. However, there are specific requirements to meet:

• The foreign spouse must have a valid pass, such as a Long-Term Visit Pass (LTVP), Long-Term Visit Pass Plus (LTVP+), or an Employment Pass. If the Singaporean spouse is under 35, the foreign spouse’s pass must have a validity period of at least six months.
• Only the Singaporean can own the flat. The foreign spouse will be listed as an occupier, which means they won’t have ownership rights. This may feel a little limiting, but there’s an important catch: even though the foreign spouse isn’t listed as a co-owner, their consent is required to sell the property. This ensures that both parties are involved in major decisions regarding the home.
• Moreover, since the foreign spouse cannot co-own the flat, they also cannot contribute to the mortgage if you are taking a loan through HDB. Therefore, only the Singaporean spouse’s income can be used to apply for an HDB loan.

2. Eligibility for BTO Flats

Under the Non-Citizen Spouse Scheme, Singaporeans with a foreign spouse are only eligible for 2-room Flexi BTO flats in non-mature estates. Here’s what you need to know:

• The Singaporean spouse must be at least 35 years old.
• The foreign spouse needs a valid LTVP, LTVP+, or Employment Pass. Unlike resale flats, there’s no six-month validity requirement if the Singaporean is over 35.
• Only the Singaporean spouse can apply as the main owner. The foreign spouse will again be listed as an occupier. While this can limit the foreign spouse’s ownership rights, it makes it easier for the couple to qualify for government schemes such as the Enhanced CPF Housing Grant (EHG).
• Additionally, the income cap for a 2-room Flexi BTO is set at $7,000. Couples who qualify may also benefit from grants similar to those available for single buyers, although the amount may be smaller than for couples where both partners are citizens.

3. Exemption from Additional Buyer’s Stamp Duty (ABSD)

A major concern for many mixed-nationality couples is the Additional Buyer’s Stamp Duty (ABSD). However, there’s good news:

• If the property is your matrimonial home, no ABSD is payable, regardless of whether you are buying an HDB flat or private property.

This applies to first-time purchases. However, if you plan on buying a second property, the higher ABSD rate for foreign buyers (currently 30%) would apply, as long as your spouse is listed as a co-owner. One exception is if your foreign spouse is from certain countries, such as the United States, which has a Free Trade Agreement (FTA) with Singapore, exempting them from ABSD.

4. Household Income Cap for BTOs and Resale Flats

For those applying for a BTO flat, the household income cap is an important factor. As mentioned earlier, if you’re applying under the Non-Citizen Spouse Scheme, the income cap for BTOs is $7,000.

If you’re buying a resale HDB flat, there’s no income cap if you aren’t applying for grants. This gives you more flexibility, especially if your household income exceeds the BTO limit, but keep in mind that you’ll need to rely solely on the Singaporean spouse’s income for financing.

5. Ownership and Loan Eligibility

As already highlighted, when it comes to HDB flats, only the Singaporean spouse’s income can be considered for mortgage applications. However, things change if you’re purchasing private property.

For private property purchases, both spouses can apply as joint borrowers, which means both incomes will be considered by the bank for the mortgage application. This opens up more flexibility in financing and may allow you to qualify for a higher loan amount, making private property a more feasible option for mixed-nationality couples.

6. Executive Condominiums (ECs)

Mixed-nationality couples are not eligible to buy new ECs. This restriction is similar to the BTO limitation for non-citizen spouses.

However, there’s a loophole: you can buy a resale EC that is at least 10 years old. These ECs, after 10 years, are considered private property, and therefore, foreign spouses can co-own them. This can be a great alternative if you’re looking for a more affordable private property option.

7. Restrictions on Landed Property

Buying landed property in Singapore is a more complex process for foreigners, and this applies to mixed-nationality couples as well. Foreigners need to obtain special approval from the Singapore Land Authority (SLA) before they can purchase landed property, with the exception of properties in Sentosa Cove.

Here’s what foreign spouses are not allowed to buy without approval:

• Bungalows
• Semi-detached houses
• Terraced houses
• Good Class Bungalows (GCBs)

Foreigners can, however, purchase strata landed houses within approved condominium developments, especially those approved before 2012.

8. Implications for Selling the HDB

It’s important to note that even though the foreign spouse is not a legal owner of the HDB flat, their consent is required for any sale of the property. This provides legal assurance that both parties are involved in any decisions related to selling the flat, even if the foreign spouse doesn’t hold ownership.

This safeguard ensures that decisions like selling the home can’t be made unilaterally by the Singaporean spouse, offering some level of security for the foreign spouse even though they aren’t a co-owner.

Conclusion

While the process of buying property in Singapore as a Singaporean married to a foreigner may seem complex, the key takeaway is that there are viable paths to homeownership, both in the HDB and private property markets. Understanding eligibility criteria, financing rules, and ownership restrictions will help you make informed decisions that suit your unique situation.

For many couples, the resale HDB option is the simplest route, but private properties or resale Executive Condominiums may provide more financial flexibility. It’s essential to consider factors like income caps, mortgage eligibility, and long-term ownership implications before making your decision. And remember, while the foreign spouse may not have full ownership rights for HDB flats, their role as an occupier ensures that they remain involved in significant property decisions like selling the home.

By carefully navigating these rules, you can find the perfect home in Singapore, whether it’s your first home together or a long-term investment.