The Housing Board has further tightened rules on mortgages to cool the resale market, and discourage those who buy public flats from overspending.

Resale flat buyers who take HDB loans can now only use up to 30 per cent of their gross monthly income to repay their loans, down from 35 per cent.

This is now identical to the current mortgage servicing ratio (MSR) limit for private loans, which was similarly adjusted by the Monetary Authority of Singapore in January.

The maximum repayment period for HDB housing loans will also be lowered from 30 to 25 years, and from 35 to 30 years for bank loans taken to buy HDB flats, including those under the Design, Build and Sell Scheme.

New 3-year waiting period for permanent residents to buy resale flats

Newly-minted Singapore permanent residents will now have to wait three years before buying a resale public flat, instead of straightaway after they become PRs.

The change, announced by National Development Minister Khaw Boon Wan, applies to resale applications received on or after 5.30pm on Tuesday.

There were 51,000 Housing Board flats fully owned by permanent residents as of end June, representing 6 per cent of all HDB flats, said Mr Khaw in a written parliamentary reply this month.

This year, 130 flats were sold by PRs within three years of their purchase, while 320 were sold within four years of purchase, and 490 within five years.

HDB to encourage multi-generational living with new flat type; tweaks for priority scheme

The Housing Board is taking another stab at encouraging multiple generations to live under one roof.

It will be rolling out a new type of three-generation flat, of which about 80 units will be available in Yishun during the upcoming sales exercise in September.

The new flat type, which features four bedrooms and three bathrooms, will have an internal floor area of 115 sq m, slightly larger than current five-room units which can measure up to 110 sq m.

HDB has also tweaked the Multi-Generation Priority Scheme, which encourages families to stay within the same Build-To-Order project.

More middle-income households now eligible for Special Housing Grant

To help more middle-income families afford a bigger flat, the Housing Board has raised the income limit for first-timers applying for the Special Housing Grant (SHG).

The income limit will now be $6,500, a sharp increase from the previous $2,500.

This will give a financial boost of up to $20,000 for those who choose four-room flats in non-mature estates. Previously, the grant was targeted mainly at low-income households going for three-room flats in similar areas.

The new details were announced by National Development Minister Khaw Boon Wan on Tuesday.