Owning a new home is a major milestone for most Singaporeans. Whether you are buying a BTO or resale HDB, there are HDB government grants available to subsidise the high cost of home ownership.
The CPF housing grants are there to aid home ownership for the lower to middle-income group, young couples who are starting out and also as a nudge factor towards your home-buying decisions. In most cases, at least one of the individual buyers must be in employment for 12 consecutive months and is still employed at the time of application.
There are essentially 5 types of HDB grants offered to the Singapore public:
- Additional CPF Housing Grant
- Special CPF Housing Grant
- Enhanced CPF Housing Grant
- Proximity Housing Grant
- Step Up Grant
Below is a quick guide to help you understand the different government grants available and how to qualify for them.
1. Additional CPF Housing Grant (AHG)
AHG can be used to purchase BTO and resale HDB flats. This is a grant to aid the lower and middle-income group. The lower your income bracket, the higher the grant amount.
- SGD 5,000 to SGD 40,000 for family applicants.
- SGD 2,500 to SGD 20,000 for single applicants.
- First-time HDB buyers with combined household income not more than SGD 5,000.
- If you are single and buying a resale flat, you will need to meet all the requirements from the Singles Grant before you can apply for AHG.
2. Special CPF Housing Grant (SHG)
If you are planning to purchase a brand new flat in a non-mature estate, you can apply for the Special CPF Housing Grant. Similar to AHG, the grant value is according to your income tier. The lower your income, the higher the grant value. SHG can be applied on top of AHG if you meet both the criteria.
- SGD 5,000 to SGD 40,000 for family applicants
- First-time HDB buyers with combined household income not more than SGD 8,500.
- A 2 to 4-room flat in a non-mature area.
3. Enhanced CPF Housing Grant
The Enhanced CPF Housing Grant is only applicable to resale units. The amount differs according to marital status, citizenship and the size of the HDB flat.
Judging by the different grant allocations, our Singapore government is encouraging home buyers to select a unit that best fits their needs. The smaller the unit, the higher the grant size.
This makes sense because a single person would not necessarily need a larger unit. This initiative is to provide efficient housing space and resource allocation for deserving members of the public.
Married / Engaged Couples and Family
- Up to SGD50,000
- First-time buyers of a resale HDB unit with monthly household income not more than SGD 12,000.
- The remaining lease of the resale unit must be at least 30 years.
This grant can be applied jointly with other singles provided you meet the requirements.
- Up to SGD25,000 for individual or maximum SGD 50,000 for joint singles application
- Applicant must be a Singaporean age 35 years and above.
- First-time buyers of a resale 2-room or bigger flat with average monthly income not exceeding SGD 12,000.
4. Proximity Housing Grant (PHG)
The PHG was issued to encourage families to stay closer together. It has been a push factor for many home-buying decisions.
To further incentivise home buyers to stay within close vicinity of each other, there is no income ceiling restriction. Best of all, you needn’t be a first-time HDB home buyer to apply for it as long as you fulfil the eligibility criteria. However, it needs to be for the purchase of a resale unit.
- SGD 20,000 for living within a 4km radius from where your parent(s) or child is/are staying.
- SGD 30,000 for living under the same roof as your parent(s) or child.
- Home buyers of a resale unit for own stay with parent(s) and child under one roof, or within a 4km radius of your parent(s) or child’s home.
5. Step Up Housing Grant
First-timers aren’t the only ones qualified for housing grants. The government has also implemented a new type of grant for second-time buyers. This is a motivating factor for home buyers to purchase a flat at non-mature areas.
- Up to SGD 15,000
- Second-time buyers whose income is not more than SGD 6,000. The flat must be located in a non-mature area.
HDB Government Grants Help You Afford Your First Home
The government grants are given to help you offset the purchase price of your flat, thus reducing the mortgage loan. However, you cannot use the grant as downpayment and monthly mortgage instalment.
There are grants that cater to different demographics. If you fulfil more than one criterion, you are allowed to apply for multiple grants to subsidize your home purchase.
Owning your first home can be exciting. With the grant assistance, you can now free up your financial reserves for renovation and home improvement.
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