Buying HDB flat on $1K pay possible, says Josephine Teo

HDB flats

SINGAPORE: As for Deputy Prime Minister Tharman Shanmugaratnam’s comment that Singaporeans earning S$1,000 could also own a home, Minister of State Josephine Teo said she was not surprised at the mixed reactions from netizens.

"They don’t necessarily know that there are grants available from the HDB that will make the actual size of the loan for purchasing these houses not very big.

"With the grants, the loan amount is about S$40,000 and if you stretch it out over 20 or 30 years, the monthly instalment is in the range of S$100 to S$200," she said.

"On the one hand, people can’t imagine that even a person earning S$1,000 can earn a home. On the other hand, the facts do show that with grant support and with regular jobs and CPF contributions, over time that goal can be reached even for those on the lower end of our income spectrum.

"So that’s a strength of our society and we should make an effort to reach out to these individuals so that they too know they can fulfill their dreams of owning (a home), it is not out of their reach," she said.

— CNA/cc/ck