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Complete Guide To The New Enhanced CPF Housing Grant (EHG) For First-Time BTO & Resale Flat Buyers

Whether it’s a new BTO or resale flat that you are looking at buying, the new Enhanced CPF Housing Grant (EHG) has you covered.


For those of you who didn’t already know, it was announced in September 2019 that both the Additional Housing Grant (AHG) and the Special CPF Housing Grant (SHG) will be making way for the Enhanced CPF Housing Grant (EHG).

The new Enhanced CPF Housing Grant (EHG) is not only going to be better in terms of how much grant first-time home buyers can get, but is also easier to understand.

Find out more

Read Also: More HDB Grants & Higher Income Ceiling: 4 Important Changes That Are Going To Help First-Time Singapore Homeowners

 

 

What Is The New Enhanced CPF Housing Grant (EHG)?

Previously, there were two housing schemes, the Additional Housing Grant (AHG), which was applicable to first-time home buyer (BTO or resale) who earn an average household monthly income of $5,000. There was also the Special CPF Housing Grant (SHG), which was only applicable to first-time home buyers buying a 4-room or smaller BTO flat in a non-mature estate. This was for family with an average household monthly income of up to $8,000.

The new Enhanced CPF Housing Grant (EHG) replaces both of these schemes. Here are some of the notable enhancements (pun not intended).

Same amount of grant for both BTO and resale flat buyer: The Enhanced CPF Housing Grant (EHG), which is based on average monthly income of a household, will give the same amount of grant to first-time HDB buyer regardless of whether they are buying a BTO or resale flat.

Grant amount up to $80,000: Similar to the previous AHG and SHG, lower income families will receive the highest amount of grant – up to $80,000.

EHG available for families with monthly income up to $9,000: Household with an average monthly income of up to $9,000 will be able to receive some grant from the EHG.

No restriction on flat types: It doesn’t matter where the location of the flat is, or the flat size that you are buying, you will receive the EHG as long as your household qualifies for it.

 

 

Who Can Qualify For The Enhanced CPF Housing Grant (EHG)?

Households with an average monthly income of $9,000 or less will be able to receive the EHG. Besides that, you also need to ensure you meet the following eligibility criteria:

Employment Status: At least one applicant must have been in continuous employment for a minimum of 12 months at the point of application.

Citizenship Status: At least one of the applicants must be a Singapore citizen.

Previous Housing Subsidies: You and all other co-applicants and essential occupiers are all first-timers.

Remaining Flat Lease: 20 years or more. In addition, the flat bought must have sufficient lease to cover the youngest buyer and spouse/fiancé(e) to the age of 95 to qualify for the full EHG. Otherwise, the EHG will be pro-rated.

For example, if the youngest flat buyer is 25, the remaining lease of the flat has to be at least 70 years. Otherwise, the flat will not have covered the youngest buyer till age 95.

Ownership/Interest In Private Property: You and the other flat applicants must not own any residential properties, both local or overseas, or have disposed of any such properties in the 30 months before the flat application. This includes private residential properties, houses, building or land.

 

 

How Much Grants Can You Get From The Enhanced CPF Housing Grant (EHG)

If you qualify for the grant, how much you get will be based on your average monthly household income over the past 12 months. Remember, this cannot exceed $9,000 per month.

Average Monthly Household Income Grant 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

 

The amount of grants that you receive will ultimately affect the purchase price of your HDB flat. For example, if your monthly household income is $5,000 a month, and if you buy a flat for $300,000, you will receive $45,000 in grant which would essentially reduce your purchase price to $255,000.

As with all housing grants, the grant amount would be credited to your CPF account first, before being used to offset your flat purchase. This means if you sell your flat in the future, the grant amount (along with the interest) needs to be returned to your own CPF account first.

 

 

Other Grants That You May Also Be Eligible For

Getting the Enhanced CPF Housing Grant (EHG) does not prevent you from applying for any other HDB grants that you may also be eligible for.

For resale flat buyer, this means they can also enjoy the Family Grant (up to $50,000), with an income ceiling of $14,000 per month. They can also get the Proximity Housing Grant (PHG), which gives them up to $30,000 if they stay within 4km of their parents, or child’s place of residence.

In total, a first-time resale flat buyer can potentially get up to $160,000 in grants.

 

 

Single Singapore Citizen Applicant

Singapore citizens who are single (not married at age 35) can apply for the Enhanced CPF Housing Grant (EHG) as well. Similar to a family buying a flat, how much grants they receive will be based on their income, up to a maximum of $4,500 a month.

Average Monthly Income Grant Amount
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

 

Whether you are looking for a BTO or resale flat, the Enhanced CPF Housing Grant (EHG) is something that you can consider tapping on if you qualify for it. So, understand how it works and make the most of it because ultimately, this will help you in reducing the cost of owning a flat.

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

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