How Much You Need To Earn In Order To Buy Your Dream BTO Home

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Home ownership in Singapore is a big deal. 

Especially with the rise of property prices in Singapore, which has the third most expensive residential property in the world. 

We’re also home to some real-life Crazy Rich Asians

It must be acknowledged though, that with the help of government grants and subsidies, your first home can become a lot more affordable. 

Here’s how much you need to earn to buy your first build-to-order (BTO) flat, with government subsidies taken into consideration. 

How Much You Need To Earn In Order To Buy The Dream BTO Home Of Your Life

Of course, these calculations by DollarsAndSense function merely as a guide and may not apply to everyone, so be sure to do your own research.  

These calculations are also based on a number of assumptions, so do take note: 

  • You do not have any other loans.
  • You do not need to take into consideration any other financial commitments and are able to channel your full salary towards your housing purchase.
  • You have enough money for the down payment (10% for HDB flats).
  • You are taking a 25-year home loan tenure.
  • You must meet the eligibility criteria for the maximum government grants for your income.
  • It is assumed that both husband and wife are working and earning the same income for the required salary.
  • You do not take any other costs into consideration, including Stamp Duty, renovation expenses etc.
  • Prices may differ from the prices on the HDB Flat Portal and future BTO launch prices as these BTO flat prices are an average of the February 2021 and November 2020 launch prices.

Whew! Now that that’s out of the way, let’s get into the exciting stuff—the juicy figures. 

Required Salary to Afford a BTO Flat 

Non-Mature Estate: 

  • 2-Room Flexi (Type 1) 
    • Average Housing Price: $112,000
    • Household Income: $1,850
    • Housing Price after EHG: $32,000
  • 2-Room Flexi (Type 2) 
    • Average Housing Price: $134,000
    • Household Income: $2,210
    • Housing Price after EHG: $54,000
  • 3-Room
    • Average Housing Price: $203,000
    • Household Income: $3,350
    • Housing Price after EHG: $133,000 
  • 4-Room 
    • Average Housing Price: $308,000
    • Household Income: $5,080
    • Housing Price after EHG: $258,000
  • 5-Room 
    • Average Housing Price: $408,000
    • Household Income: $6,730 
    • Housing Price after EHG: $378,000 

Mature Estate:

  • 2-Room Flexi (Type 1)
    • Average Housing Price: $135,000 
    • Household Income: $2,230 
    • Housing Price after EHG: $55,000 
  • 2-Room Flexi (Type 2)
    • Average Housing Price: $169,000
    • Household Income: $2,790 
    • Housing Price after EHG: $89,000
  • 3-Room
    • Average Housing Price: $381,000
    • Household Income: $6,290
    • Housing Price after EHG: 346,000
  • 4-Room
    • Average Housing Price: $528,000 
    • Household Income: $8,710 
    • Housing Price after EHG: 523,000
  • 5-Room
    • Average Housing Price: $636,000
    • Household Income: $10,490 
    • Housing Price after EHG: $636,000 (no EHG)

If you’re wondering what EHG is, it’s the Enhanced CPF Housing Grant which subsidises prices for first-time homeowners based on their average monthly income. 

This grant can be used to offset the purchase price of your flat or to reduce the mortgage loan for the purchase of the flat. 

Do note however that the EHG cannot be used to settle the minimum cash down payment (if any) or monthly mortgage instalment payments. 

The EHG can help to greatly reduce flat prices, but don’t be too happy just yet—other expenses such as stamp duties, legal costs and renovations have to be taken into consideration as well. 

Here’s some of the key eligibility criteria for the EHG:

  • One applicant has to be in continuous employment for minimally 12 months during the time of application 
  • One applicant must still be working at the time of submission of flat application 
  • Your average gross monthly household income for the months worked during the 12 months before the flat application cannot exceed $9,000 
  • You and all other co-applicants and essential occupiers are first-time homeowners

All the best to all prospective homeowners on this exciting journey!


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To know more about BTO, you might want to watch this video to the end:

Feature Image: happycreator / Shutterstock.com

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