The housing finance sector plays a very major role in Singapore Mortgage. The mandatory saving scheme, Central Provident Fund ( CPF ), is the base of this sector. The buying of properties is primarily financed by using the Central Provident Fund ( CPF ). Introduced in the year 1955, the CPF scheme has proved to be a great success. Comparing the year 1981 and 1999, the sum of withdrawal increased by 14 times. Singapore Census 2000 revealed that among the 92% Singaporeans who own a home, a large section benefited by this scheme.
Home ownership in the country of Singapore are of two kinds, namely public homeownership and private homeownership. The dominant one is the public homeownership sector housing 81.3% of total number of households, ranging from low income families to upper middle income families. The system of public housing is under Singapore's Housing Development Board (HDB). There are three sub categories in the sector of public homeownership, which are
- The HDB resale market
- The public new housing sector
- The HDB executive condominium market
The private owner-occupier housing sector encompasses less than 10% of the total households. There is a signal of increasing private housing stock, which went up from 14% in the year 1989 to 18.1% in the year 1999. The private sector gets relatively less subsidies from the Singaporean Government and therefore is less modulated. The overall picture of Singapore Mortgage is quite bright.
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