Commentary on National Day Rally 2026

(Photo credit to Prime Minister's Office, Singapore)

Prime Minister Lawrence Wong has delivered the National Day Rally speech, announcing a range of measures to support Singaporeans and to keep Singapore’s economy adaptable and resilient. Some of these measures will also support Singaporeans’ desire to own a home.

Extra BTO Ballot for Families with Multiple Children

Prime Minister Wong announced that first-time families will receive an additional ballot for each Singaporean child under 18 when they apply for a Build-to-Order (BTO) flat. This change will take effect from the BTO exercise in February 2027.

The extra ballot will increase the likelihood of a successful application for families with multiple young children. While the extra ballot might encourage some large families to apply for more popular BTO projects, a major shift in preference is unlikely. Families are more likely to prioritise factors such as proximity to public transport, schools, supermarkets, and hawker centres rather than a project's popularity.

A notable increase in applications for larger flats is also unlikely, since large households naturally apply for bigger flats. However, the extra ballot would give households with multiple young children a higher chance of success. As a result, households without children or with fewer young children might find it advantageous to apply for smaller flats.

The extra ballot might not encourage childless couples to have children, but it might encourage married couples to have more children. However, this shift towards larger families is not expected to take effect immediately. In the first half of 2026, there were 13,669 live births, of which only 17.9% were the third or subsequent child, similar to the 17.5% recorded last year. An uptick in this percentage will indicate that more couples are having three or more children.

This extra ballot aligns with the government’s pro-family policies, including the recently announced increase in childcare leave for each working parent, as well as increased financial support for each child through Edusave top-ups and lower preschool fees.

Increase in Income Ceiling

The prime minister also announced an increase in the monthly household income ceiling for BTO flat applicants, from the current $14,000 to $16,000. The increase will take effect for those applying for an HDB eligibility letter from 24 August 2026.

The monthly income ceiling for executive condominium (EC) buyers has also been increased by $2,000 to $18,000. The increase will apply only to EC sites whose tenders close on or after 24 August 2026.

More young couples have crossed the income ceiling, so the income ceiling needs to increase.

Assuming a 25-year loan tenure, a stress-test interest rate of 3% p.a., and no existing debt obligations, a BTO buyer with a household income of $14,000 per month will be able to borrow up to approximately $885,000. This translates to a monthly mortgage payment of about $4,200. 

With the higher income ceiling of $16,000, BTO buyers can now borrow up to about $1.01 million. This raises their maximum loan amount by around $125,000, although their monthly repayments would also rise to about $4,800. 

For EC buyers, the income ceiling will rise from the current $16,000 to $18,000. Assuming a 30-year loan term, a 4% p.a. stress test and no debt obligations, EC buyers can obtain a bank loan of up to about $1.13 million, with monthly repayments of around $5,400.

Most households should be able to afford the higher monthly repayments, as average resident household monthly income rose 31.9% from $11,525 in 2015 to $15,205 last year.

The increase in maximum loan amount will also allow families to pay less cash for their HDB flat. As a result, households will have more liquid funds for renovations, stamp duty, and other housing expenses, easing their financial burden.

With the increase in income ceiling, households could potentially obtain a higher loan from HDB, allowing homebuyers to have a higher budget for their purchase. This might boost HDB resale prices, which have been declining in the first two quarters of this year.

-End-

For media enquiries, please contact:  

Eugene Syn
PR Manager
eugene.syn@era.com.sg