Complete Guide To HDB Housing Grants In Singapore For Different Types Of Flats

In Singapore, buying a HDB flat is one of the major financial decisions that most of us have to make, and usually requires a housing loan. As such, being familiar with the various housing grants available is important, as it can potentially help you save quite a sum of money.

In this article, we will explain the different housing grants available, the eligibility criteria for them, and how much Singaporeans can expect to receive.

Read Also: Why You Should Choose (Wisely) To Spend Less On Your First BTO Flat

# 1 Additional CPF Housing Grant

Grant Amount: Up to $40,000

Who is eligible: First-time homeowners buying new or resale flats, income ceiling of $5,000

Meant for lower and middle-income families, the Additional CPF Housing Grant (AHG) allows families buying their first HDB flat to receive a grant of up to $40,000. This grant can be used for the purchase of both new and resale flats.

To qualify for this grant, applicants have to meet the following conditions.

One: At least 1 of the applicants must have worked continuously for 12 months prior to the flat application, and still be employed at the point of flat application.

Two: Monthly household income up to $5,000. Actual grant given will depend on actual income, with lower-income households receiving a higher amount.

ahg

Source

Scenario 1:

Applicant 1 Applicant 2
Employment Status Continuously employed for more than one year In School/Unemployed
Monthly Income $3,000
Total Monthly Household Income $3,000
Eligible? Yes
Grant Amount $25,000

It is possible that one applicant may have been working continuously for more than a year, while their partner is still in school, or is not working. Under such circumstances, homebuyers will qualify for the grant if the gross income of the person working is $5,000 or less.

# 2 Special CPF Housing Grant

Grant Amount: Up to $40,000

Who is eligible: First-time homeowners buying 4-room or smaller BTO flats in non-mature estates, income ceiling of $8,500

Similar to the AHG, the Special CPF Housing Grant (SHG) is a grant designed to help lower and middle-income families in Singapore buy their first HDB flat. However, the SHG can only be used for the purchase of 4-room or smaller new flats in non-mature estates. The SHG is given on top of the AHG, which means homeowners can enjoy both grants if they are eligible.

The following conditions must be met.

One: Similar to the AHG, at least 1 of the applicants must have worked continuously for the 12 months prior to the flat application and still be employed at the point of flat application.

Two: Monthly household income of up to $8,500. Actual grant given will depend on actual income, with lower-income households receiving a higher amount.

Three: As stated above, the SHG is only applicable for those buying a 4-room or smaller new flat in a non-mature estate. It’s not applicable for resale flats, new flats in mature estates, or 5-room or larger new flats in non-mature estates.

For those who are potentially eligible for the SHG (i.e. combined monthly income up to $8,500), you may want to consider applying for a 4-room or smaller new flat in a non-mature estate to enjoy the SHG.

Here is a screenshot from the HDB website that shows the total grant one can expect to receive from both the AHG and SHG. For those earning $1,500 and below, they can receive as much as $80,000 in grants!

shgahgSource

Scenario 2:

Both applicants are working and have a combined monthly household income of $4,000. As such, they are entitled to a grant of $15,000 from the AHG.

If they were to apply for a 4-room or smaller new flat in a non-mature estate, they will enjoy an additional $40,000 grant from the SHG.

Monthly Household Income: $4,000
For 4-Room or smaller BTO flats in non-mature estate 5-room or larger, resale flats, or BTO flats from mature estate
AHG $15,000 $15,000
SHG $40,000
Total $55,000 $15,000

 

# 3 CPF Housing Grant

Grant Amount: Up to $30,000

Who is eligible: First-time homeowners buying resale flats or Executive Condominiums, with an income ceiling of $12,000

For those who choose to buy a HDB resale flat or Executive Condominium, there are also housing grants available.

One of them is the CPF Housing Grant for resale flats. It provides first-time homeowners earning up to $12,000 and buying a resale flat a grant of $30,000. If your monthly household income is $5,000 or less, you could also apply for the AHG.

For those considering an Executive Condominium (EC), they are also able to apply for the CPF Housing Grant. The full grant amount of $30,000 is given for households with a monthly income of $10,000 or less. Household with a monthly income of $10,001 to $11,000 will receive $20,000, with $10,000 given to households with a monthly income of $11,001 to $12,000.

Scenario 3:

A family with a combined monthly household income of $4,500 a month that buys a resale flat would be eligible for the CPF Housing Grant of $30,000, and the AHG of $10,000. In total, they will receive a total grant amount of $40,000.

Monthly Household Income: $4,500
AHG $10,000
CPF Housing Grant $30,000
Total $40,000

 

# 4 Proximity Housing Grant

Grant Amount: $20,000

Who is eligible: Homeowners buying resale flats in the same town or within 2km of where their parents are staying, or who will be living in the same flat.

If you are buying a resale flat in the same town or within 2km of where your parents are staying, or are intending to stay with them in the same flat, you will be eligible for the $20,000 Proximity Housing Grant (PHG).

For first-time homebuyers earning up to $12,000, the PHG is given in addition to the CPF Housing Grant and the AHG.

Unlike the CPF Housing Grant and AHG, the PHG does not have an income ceiling and is not restricted to just first-time homebuyers. This means that almost all homebuyers will be helped when buying a flat to live with or close to their parents for mutual care and support.

Scenario 4:

A family with a combined Monthly household income of $5,000 a month that buys a resale flat within 2km of where their parents are staying would be eligible for the following grants:

Monthly Household Income: $5,000
AHG $5,000
CPF Housing Grant $30,000
PHG $20,000
Total $55,000

 

Consider The Grants You Are Eligible For To Make The Right Housing Decision

hdb-grantThe various grants available can help us substantially reduce the cost of buying our first home. As such, it makes complete sense to first understand what all these grants are, and to have a discussion with your partner on how these grants could help you in deciding the type of flat that you should go for.

Can’t wait to find out more details about these housing grants are and whether you are eligible for them? You can drop us a comment on our Facebook Page to clarify what is it that you are unsure about.

Read Also: 5 Ways To Get Your First HDB Flat That You Can Afford

This article was written in partnership with the Ministry Of National Development. All views expressed in the article are the independent opinion of DollarsAndSense.sg

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