HDB Housing Grants 101
The Housing and Development Board (HDB) plays a crucial role in providing affordable and quality housing for its residents.
To further assist homebuyers, the government offers various HDB housing grants that aim to make homeownership more accessible and affordable. These grants can provide a significant financial boost for individuals and families looking to purchase different types of flats.
In this comprehensive guide, we will explore the different HDB grants available and how they can benefit prospective homeowners.
Here at OMY Singapore, you will discover the following:
What Are HDB Grants?
HDB grants are financial incentives provided by the government to help Singaporeans fulfil their dream of owning a home. These grants can be used to offset the purchase price of both new and resale flats, reducing the financial burden on homebuyers. Let’s delve into the different types of HDB grants available for different types of flats.
Different Types Of Housing Grants
Here are the various types of HDB Grants you can apply for.
Enhanced CPF Housing Grant
Amount: up to SS$80,000
The Enhanced CPF Housing Grant (EHG) is a BTO grant that is designed to support first-time homebuyers in purchasing their first HDB flat. This grant is applicable to both new and resale flats. Eligible households can receive up to S$80,000 in grants, depending on their income and citizenship status.
This BTO grant combines the previous Additional CPF Housing Grant (AHG) and Special CPF Housing Grant (SHG), simplifying the application process and providing a more substantial grant amount.
Take a look at the table below to see the subsidy for this CPF housing grant you can get based on your income.
| Average Monthly Household Income (over a one-year period) | Amount |
|---|---|
| Less than S$1,500 | S$80,000 |
| S$1,501 – S$2,000 | S$75,000 |
| S$2,001 – S$2,500 | S$70,000 |
| S$2,501 – S$3,000 | S$65,000 |
| S$3,001 – S$3,500 | S$60,000 |
| S$3,501 – S$4,000 | S$55,000 |
| S$4,001 -S$4,500 | S$50,000 |
| S$4,501 – S$5,000 | S$45,000 |
| S$5,001 – S$5,500 | S$40,000 |
| S$5,501 – S$6,000 | S$35,000 |
| S$6,001 – S$6,500 | S$30,000 |
| S$6,501 – S$7,000 | S$25,000 |
| S$7,001 – S$7,500 | S$20,000 |
| S$7,501 – S$8,000 | S$15,000 |
| S$8,001 – S$8,500 | S$10,000 |
| S$8,501 – S$9,000 | S$5,000 |
CPF Housing Grants For Resale Flats
Amount: S$50,000 to S$80,000
For first time-applicants looking to buy a resale flat, there are specific housing grants available to assist with the purchase. If you apply for a housing grant for resale flats, it can help you save so much money.
The Family Grant is a notable type of resale flat grant to help first-time buyers of resale flats avoid paying the full market price of a unit. However, the average monthly household income must be less than S$14,000 to qualify for this resale grant.
The Family Grant aims to support families in acquiring a resale flat to accommodate their growing needs. Families buying for the first time that want to purchase 2-room up to 4-room resale flats can get up to S$50,000 to S$80,000. Meanwhile, families who want to purchase a 5-room or larger flat can get S$40,000 to S$50,000.
If you are single and want to purchase a resale flat for the first time, you can also take advantage of this grant. You may get S$25,000 to S$40,000 if you’re getting a 2-room to 4-room unit, and you can get S$20,000 to S$25,000 if you’re getting a 5-room or larger resale unit.
Proximity Housing Grant
Amount: S$20,000 to S$30,000
The Proximity Housing Grant (PHG) encourages families to live near their parents or married children. This grant aims to foster stronger family ties and provide mutual support among generations.
Eligible buyers who purchase a resale flat within 4 kilometres of their parents’ or married child’s home can receive up to $20,000 in grant money, and SS$30,000 if they stay with their child or parents.
For first-time homebuyers who are earning up to S$12,000, this grant is given in addition to the CPF Housing Grant and the EHG. Keep in mind that this grant does not have an income ceiling, as it is not only restricted only to first-time homebuyers. Therefore, all homebuyers can benefit from this grant.
Step-Up CPF Housing Grant (Families)
Amount: S$15,000
The Step-Up CPF Housing Grant is specifically designed for second-timer families who want to buy a 2-room or 3-room unit, whether it’s new or resale flats in non-mature estates.
Making The Most Out Of Your HDB Housing Grants
Securing an HDB housing grant undeniably gives you a financial advantage, but it’s essential to maximise its benefits.
Here are some tips on how to make the most out of your HDB housing grants:
Understand the eligibility criteria
Before applying for any HDB housing grant, thoroughly familiarise yourself with the eligibility criteria. Each grant has specific requirements such as income limits, citizenship status, and property type. Understanding these criteria will help you determine your eligibility and avoid any potential complications during the application process.
Plan your finances
Take a proactive approach to financial planning to ensure that you optimise the use of your HDB grants. Assess your budget, savings, and loan affordability. Consider engaging a financial advisor or utilising online tools to help you make informed decisions. By having a clear understanding of your financial situation, you can make smarter choices about the size and location of your HDB flat.
Explore additional financing options
While HDB grants provide a significant boost, you may still require additional financing for your home purchase. Explore other financing options such as HDB loans, bank loans, or the use of your Central Provident Fund (CPF) savings.
Compare interest rates, loan terms, and repayment options to determine the most suitable choice for your circumstances.
Research and compare flat prices
Be diligent in your research to find the best possible deal for your HDB flat. Visit HDB resale portals, attend property exhibitions, and consult property agents to gather information on flat prices in different locations. By comparing prices, you can identify areas that offer better value for money and potentially find a flat that meets your needs within your budget.
Consider the unit’s future value and growth potential
When selecting a flat, think about its future value and growth potential. Look for flats located in areas with good infrastructure, amenities, and proximity to transportation hubs. Such locations tend to appreciate over time, ensuring a solid investment for the future.
Seek professional advice if needed
Don’t hesitate to seek professional advice when navigating the HDB housing grant process. Consult a trusted property agent or financial advisor who specialises in HDB transactions. They can provide valuable insights, guide you through the application process, and help you make informed decisions.
By following these tips, you can leverage your HDB housing grants effectively and make the most out of the financial support provided by the government, bringing you one step closer to your dream of owning a home in Singapore.
A Word From OMY
Navigating the world of HDB housing grants can be a complex process, but it is undoubtedly worthwhile for those looking to purchase a home in Singapore. The Enhanced CPF Housing Grant, CPF Housing Grants for Resale Flats, Proximity Housing Grant, and Step-Up CPF Housing Grant are valuable financial aids that make homeownership more attainable.
Prospective buyers need to explore their eligibility and understand the specific requirements for each grant to maximise the benefits. With these housing grants in place, the Singaporean government continues to demonstrate its commitment to providing affordable housing options and supporting its citizens’ homeownership aspirations.
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