On September 11 2019, HDB introduced two new updates: the Enhanced Housing Grant (EHG), and higher income ceilings for buyers of HDB flats.
By replacing the Additional Housing Grant (AHG) and Special Housing Grant (SHG), the EHG will streamline the CPF Housing Grants system, and more importantly, make HDB flats more affordable and accessible to first-time home buyers, thanks to additional grants made available. Here’s the overview of the changes:
Enhanced CPF Housing Grant (EHG): What You Need To Know
Previously, there was the Additional CPF Housing Grant (AHG) and the Special CPF Housing Grant (SHG) available for HDB flat buyers.
This could be quite confusing for people looking to buy an HDB flat. The EHG replaces both the AHG and SHG, helping to simplify the grant structure for prospective HDB flat owners.
Here’s a comparison between the EHG and the old AHG & SHG:
|
Eligibility conditions |
Additional Housing Grant (AHG) |
Special Housing Grant (SHG) |
Enhanced CPF Housing Grant (EHG) |
|
Income ceiling |
Up to $5,000 per month on average |
Up to $8,500 per month on average |
Up to $9,000 per month on average |
|
Flat type |
New and resale |
New flat (4-room or smaller in non-mature estates) |
No restriction on flat type or estates |
|
Maximum grant amount |
$40,000 |
$40,000 |
$80,000 |
Am I Eligible for the Enhanced Housing Grant?
In order to qualify for the EHG, you’ll need to meet the following criteria:
- You must be applying for a flat for the first time
- Your average gross monthly household income for the previous 12 months can’t exceed $9,000
- You must be continuously employed for the past 12 months prior to applying for the flat
- For the full EHG grant, the flat must have a sufficient lease to cover the youngest buyer to the age of 95
- If the remaining lease isn’t sufficient, the EHG given will be pro-rated
- Exceptions are made for buyers of 2-room Flexi flats on short leases
- You can’t own any private properties or land whether locally or overseas
- You also can’t have disposed of any of these within the last 30 months
Buyers of old HDB resale flats may not be able to obtain the full grant.
How Much Enhanced Housing Grant (EHG) Can I Get?
How much you receive through the EHG will depend on your average gross monthly household income for the past 12 months.
Since such grants are targeted at those with a lower income, families with lower household incomes are entitled to larger grants.
Household income would comprise the incomes of everyone in your home, and not just one applicant/co-owner.
|
Average monthly household income* over 12 months |
EHG Amount |
|
Not more than $1,500 |
$80,000 |
|
$1,501 to $2,000 |
$75,000 |
|
$2,001 to $2,500 |
$70,000 |
|
$2,501 to $3,000 |
$65,000 |
|
$3,001 to $3,500 |
$60,000 |
|
$3,501 to $4,000 |
$55,000 |
|
$4,001 to $4,500 |
$50,000 |
|
$4,501 to $5,000 |
$45,000 |
|
$5,001 to $5,500 |
$40,000 |
|
$5,501 to $6,000 |
$35,000 |
|
$6,001 to $6,500 |
$30,000 |
|
$6,501 to $7,000 |
$25,000 |
|
$7,001 to $7,500 |
$20,000 |
|
$7,501 to $8,000 |
$15,000 |
|
$8,001 to $8,500 |
$10,000 |
|
$8,501 to $9,000 |
$5,000 |
What If I’m a Single Applicant?
Singles will also stand to benefit from the new EHG. The criteria will be proportionally adjusted for single first-timer grant applicants.
|
Average Monthly Household Income* Over 12 Months |
EHG (Singles) |
|
Not more than $750 |
$40,000 |
|
$751 to $1,000 |
$37,500 |
|
$1,001 to $1,250 |
$35,000 |
|
$1,251 to $1,500 |
$32,500 |
|
$1,501 to $1,750 |
$30,000 |
|
$1,751 to $2,000 |
$27,500 |
|
$2,001 to $2,250 |
$25,000 |
|
$2,251 to $2,500 |
$22,500 |
|
$2,501 to $2,750 |
$20,000 |
|
$2,751 to $3,000 |
$17,500 |
|
$3,001 to $3,250 |
$15,000 |
|
$3,251 to $3,500 |
$12,500 |
|
$3,501 to $3,750 |
$10,000 |
|
$3,751 to $4,000 |
$7,500 |
|
$4,001 to $4,250 |
$5,000 |
|
$4,251 to $4,500 |
$2,500 |
How Much EHG Can I Get for Resale Flats?
The Enhanced CPF Housing Grant amounts will be determined not only by your income bracket, but also the lease remaining on the flat.
If the lease on the flat you’re applying for can last until you and your spouse are 95 years old, then you will receive the full grant amount dictated by your income bracket.
Otherwise, the grant amount will be pro-rated based on the remaining lease.
What does the Enhanced CPF Housing Grant Mean for New Homeowners?
The EHG provides higher grant amounts and will be available to more families and individuals, compared to the Additional CPF Housing Grant and Special CPF Housing Grant previously.
With the EHG, you can buy any flat type in any estate, so you have a larger pool of potential homes to choose from if you want to use the grant. Till date, almost $500 million has been disbursed by HDB as part of the EHG to about 15,600 first-time flat buyers. 7,700 of them were first-time buyers of BTOs while the rest who received the EHG bought resale flats.
Resale flat buyers stand to gain the most, with the maximum grant amount increased from $120,000 to $160,000. The increase of the CPF Housing Grant income ceiling from $12,000 to $14,000 will also unlock a lump sum grant of $50,000 for a sizeable group of buyers.
Buyers of resale flats stand to gain more from the recent grant changes.
Related: The Ultimate Guide to Buying an HDB Resale Flat
Increased Income Ceilings: More Singaporeans Eligible for BTO Flats Now
One of the criteria to be eligible to purchase a flat directly from HDB — be it a BTO, Sale of Balance Flat (SBF) or ROF flat — is that your average gross household monthly income cannot exceed a certain amount (see below). This is to make it easier for lower to middle-income families to own an affordable starter home.
Between 2016 to 2018, HDB had to turn down an average of 360 applications each year for new flats and executive condos (ECs), because these applicants didn’t meet the eligibility criteria for income ceilings.
The last income ceiling increase was four years ago. Since then, Singapore’s median household income has risen, and the government have increased the income ceiling to account for that, so that enough Singaporeans will still be eligible to buy a BTO, whose prices have also increased in this period.
How the New HDB Income Ceilings Apply to Families and Singles
With the higher income ceilings in place, more families and individuals will be eligible for HDB flats.
Here’s a look at the current and old income ceilings:
2-room flexi flat (99 year lease):
|
Previous income ceiling |
Current income ceiling |
|
$6,000 (for singles) |
$7,000 (for singles) |
3-room flat:
|
Previous income ceiling |
Current income ceiling |
|
$12,000 |
$14,000 |
|
$6,000 (for singles) |
$7,000 (for singles) |
4-room flat or bigger:
|
Previous income ceiling |
Current income ceiling |
|
$12,000 |
$14,000 |
|
$18,000 (for extended or multi-generation families) |
$21,000 (for extended or multi-generation families) |
|
$6,000 (for singles) |
$7,000 (for singles) |
Executive condo:
|
Previous income ceiling |
Current income ceiling |
|
$14,000 |
$16,000 |
Although these new income caps mean that more people will be eligible for grants, this also means that there will be increased competition when purchasing HDB flats.
If you’re a new, aspiring homeowner, this may seem like a bad thing, as more competition could mean less chance of a successful BTO ballot.
That said, HDB anticipates that demand for housing will go up, and to meet that demand they will increase the supplies of BTO’s in the coming years.
Still feeling a little lost? Don’t worry – if you need more information on HDB’s housing grants and financial schemes, we have you covered here with our comprehensive resource to HDB’s various housing grants and programmes.
Already thinking of buying a HDB flat? Explore our latest listings here.
Common FAQs related to the Enhanced CPF Housing Grant (EHG):
1. What is the Enhanced CPF Housing Grant?
The Enhanced CPF Housing Grant (EHG) is the subsidy you can get in your CPF account when you buy your first HDB home. In total, you can get up to $80,000 in grants.
2. Who is Eligible for the Enhanced CPF Housing Grant?
You must be a first-timer with an average gross monthly household income below $9,000. At least one of the applicants must be Singaporean and you must ensure that the remaining lease is enough to cover the younger buyer until 95 years old. You also cannot own a private property at least 30 months prior to your new flat application.
3. Do I Need to Pay Back HDB Grant?
The answer is yes. When you sell your HDB after the 5-year MOP, you will need to return the funds used for the flat into your CPF. This includes the EHG as well as any accrued interest into your CPF account.
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