Enhanced CPF Housing Grant for HDB. Are you eligible?

HDB resale transaction volume is on the rise, fuelled by those taking advantage of the grants that are now available. With the new grants and revisions to existing schemes, first time home buyers could actually receive up to $160,000 in grants when purchasing a resale HDB. This makes it an increasingly attractive option as compared to BTO flats, given the latter’s long waiting times and uncertainty of getting a flat in a good location. If you’re thinking about making your first home purchase, here’s a quick summary of the new grants that are causing a buzz in the resale market.

New kid on the block – Enhanced CPF Housing Grant

Announced in September this year, the Enhanced CPF Housing Grant (EHG) provides between $5,000 and $80,000 for families, depending on their combined income level. This is, of course, subject to two requirements:

  1. income eligibility – EHG is only available if you have a combined monthly income below $9,000. Obviously, the closer your combined income is to $9,000, the less grant amount you’ll be entitled to.
  2. Lease term – the remaining lease on the flat must last the youngest buyer until the age of 95. In other words, if you and your spouse are both aged 30 now, the resale flat should have a remaining lease of at least 65 years – otherwise the grant will be pro-rated. This should not be a big issue, as most mature estates still offer plenty of options for flats that were built after the mid-1980s.

Singles are also eligible for the EHG grants, except that the income requirement and grant amounts are halved. Singaporean citizens who marry foreign spouses are also evaluated under the same criteria as single buyers.

The other oldie but goodie grants

In addition to EHG, there are other grants that you may be eligible for. Since the price of resale flats is determined by market forces (as opposed to BTOs which are sold at subsidised prices), first time families buying a resale flat may be eligible for the Family Grant of $50,000 ($40,000 for 5-room flats). This is applicable for couples who are first-time HDB buyers and have a combined monthly income of less than $14,000. This income ceiling was revised from $12,000 at the same time that the new EHG was introduced.

If you’re buying a flat that’s within 4km of either spouse’s parents, you may also qualify for the Proximity Housing Grant of $30,000.

Realistically, most couples will not qualify for the full grant amount of $160,000. But for a typical couple that has a combined income of $6,000 and wants to buy a 4-room resale flat with 70 years’ lease remaining, they would be eligible for:

Family Grant – $50,000

Enhanced CPF Housing Grant – $35,000

$85,000 is obviously a very significant amount that will decrease your financial burden, and/or free up more cash for home renovations and other expenses.

It’s easy to see why many first time home buyers are now taking a closer look at resale HDB flats. If you’re ready to find your dream home, [click here to check out HDB resale listings on our online bidding platform!]

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