As announced during the National Day Rally 2024, the Enhanced CPF Housing Grant (EHG) grant will be increased to support first-time home buyers buying their first HDB flat. EHG is available for both new and resale flats
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What Is The New Enhanced CPF Housing Grant (EHG)?
Who Can Qualify For The Enhanced CPF Housing Grant (EHG)?
How Much Grants Can You Get From The Enhanced CPF Housing Grant
Other Grants That You May Also Be Eligible For (EHG)
Single Singapore Citizen Applicant
What Is The New Enhanced CPF Housing Grant (EHG)?
Before September 2019, there were two housing schemes. The Additional Housing Grant (AHG) was applicable to first-time home buyers (BTO or resale) earning an average monthly household 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 families with an average household monthly income of up to $8,000.
When introduced in 2019, the Enhanced CPF Housing Grant (EHG) replaced both old schemes. Here are some of the notable changes.
The Enhanced CPF Housing Grant (EHG), which is based on a household’s average monthly income, will give the same amount of grant to first-time HDB buyers regardless of whether they are buying a BTO or resale flat.
Grant amount up to $120,000: From 20 August 2024 onwards, the EHG grant amount is up to a maximum of $120,000, an increase from an initial $80,000.
EHG is available for families with monthly incomes up to $9,000: Households with an average monthly income of up to $9,000 can receive a grant from the EHG.
No restriction on flat types: It doesn’t matter where the flat is located or the 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 the time of application, at least one applicant must have been in continuous employment for a minimum of 12 months.
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 cover the youngest buyer until 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, buildings 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
$120,000
$1,501 to $2,000
$110,000
$2,001 to $2,500
$105,000
$2,501 to $3,000
$95,000
$3,001 to $3,500
$90,000
$3,501 to $4,000
$80,000
$4,001 to $4,500
$70,000
$4,501 to $5,000
$65,000
$5,001 to $5,500
$55,000
$5,501 to $6,000
$50,000
$6,001 to $6,500
$40,000
$6,501 to $7,000
$30,000
$7,001 to $7,500
$25,000
$7,501 to $8,000
$20,000
$8,001 to $8,500
$10,000
$8,501 to $9,000
$5,000
The amount of grants 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 you buy a flat for $350,000, you will receive $65,000 in grants, reducing your purchase price to $285,000.
As with all housing grants, the grant amount would be credited to your CPF account before being used to offset your flat purchase. If you sell your flat in the future, the grant amount (along with the interest) must be returned to your own CPF account first.
Other Grants That You May Also Be Eligible For
Depending on whether you are a first-time buyer of a new or resale flat, you can apply for other grants, in addition to the Enhanced Housing Grant (EHG), to help with your home purchase.
This means resale flat buyers can also enjoy the CPF Housing Grants for Resale Flat (up to $80,000), with an income ceiling of $14,000 monthly. 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 residence or $20,000 if they live within 4km of where their parents/child live.
In total, a first-time resale flat buyer can potentially get up to $230,000 in grants.
Single Singapore Citizen Applicant
Singapore citizens who are single (not married at age 35) can also apply for the Enhanced CPF Housing Grant (EHG). Similar to a family buying a flat, the 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
$60,000
$751 to $1,000
$55,000
$1,001 to $1,250
$52,500
$1,251 to $1,500
$47,500
$1,501 to $1,750
$45,000
$1,751 to $2,000
$40,000
$2,001 to $2,250
$35,000
$2,251 to $2,500
$32,500
$2,501 to $2,750
$27,500
$2,751 to $3,000
$25,000
$3,001 to $3,250
$20,000
$3,251 to $3,500
$15,000
$3,501 to $3,750
$12,500
$3,751 to $4,000
$10,000
$4,001 to $4,250
$5,000
$4,251 to $4,500
$2,500
Whether you are looking for a BTO or a resale flat, the Enhanced CPF Housing Grant (EHG) is something you can consider if you qualify. So, understand how it works and make the most of it because, ultimately, this will help you reduce the cost of owning a flat.
Read Also: Complete Guide To HDB Housing Grants In Singapore For Different Types Of Flats
This article was originally written on 7 October 2019 and has been updated to provide the latest information.
The post Complete Guide To The New Enhanced CPF Housing Grant (EHG) For First-Time BTO & Resale Flat Buyers appeared first on DollarsAndSense.sg.
