If you’ve gotten your queue number for your BTO flat, you will eventually have to decide if you want to opt-in for the HDB Optional Component Scheme (OCS).

What is Optional Component Scheme (OCS)?

The OCS will offer homeowners home fixtures such as doors, floor finishes etc. Depending on the package that you pick, the cost of OCS varies and will be added to the flat price. In other words, you are able to fund it with your CPF and mortgage loan.

Source: https://www.hdb.gov.sg/residential/buying-a-flat/new/design-features

Is OCS cheaper?

The OCS is often marketed to be cheaper than sourcing an interior designer to do it for you. But how much cheaper is it?

Source: Qanvast

According to the data provided by Qanvast, it seems like for flooring the difference between OCS and ID gets bigger along with the flat size. For a 5-room flat, you can potentially get a saving of $2,610 if you were to opt-in for OCS instead. While as for internal doors and sanitary fitting, the cost of installation is negligible.

Things to consider

Cash outlay

One major difference between OCS and getting your own ID is that the cost for OCS is priced in with the flat price. This means that the cost you spent on OCS is spread across your loan tenure and can be payable with your CPF. For example, if you spent $5,000 on OCS and you are financing your flat with a bank loan at a loan tenure of 20 years, you are effectively paying the $5,000 over 20 years at a low-interest rate of 1.25% p.a. Alternatively, if you approach an ID, you would have to fork out $5,000 in cash.

Duration of stay

It is important to identify the purpose of your BTO flat, if it is just a temporary home to stay OCS might be a better choice to minimise the cash outlay especially at the early stage of your adulting journey. However, if it is meant to be a forever home, then you will have to consider if the design of the OCS fits the image of your ideal home.

If you have yet to decide what’s the goal of the flat or have no idea about your ideal dream house, then it would be recommended to not opt-in for OCS. After all, if you do, there is no way to change your mind and there would be an additional cost of hacking and redesigning if you choose to go for your own ID thereafter.

Knowing what’s included in the OCS

These fixtures would eventually play a large element in your home’s design. Remember to go down to the HDB Hub to look at the OCS designs available for your flat — to see and feel them in flesh to decide if you would like to opt-in. Something to note is these designs are Universal Designs made to fit the general home styles and may not be everyone’s cup of tea.

Another thing to note is that a common style that is with the OCS is an open kitchen. While that seems to be all the hype now if your family is one that often does heavy cooking it could possibly be a downside.

Conclusion

Ultimately, the decision to opt-in or out of OCS is not one to be taken lightly. If you are unsure of what might be the best choice for you, it would be better to not go for it. Because the consequences of regretting getting the OCS is much larger than not.