Grants increased for HDB flat buyers

11 Sep 2019 2 min read


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First-time home buyers will get higher housing grants when they purchase Housing Board flats and the income ceilings for eligible buyers has been raised from 11 September 2019.

Currently, there are three types of grants: the CPF Housing Grant of $50,000, the Additional CPF Housing Grant (AHG) of up to $40,000 and the Special CPF Housing Grant (SHG) of up to $40,000.

Those buying Build-to-Order flats may be eligible for the AHG and SHG, while those buying resale homes could get the CPF Housing Grant and the AHG.

But from Sept 11, the AHG and SHG will be combined into a new Enhanced CPF Housing Grant (EHG) of up to $80,000, available to eligible buyers, regardless of whether they get a new or resale flat.

The income ceiling for the EHG is $9,000, higher than the AHG’s cap of $5,000 or the SHG’s $8,500.

The caveat for the EHG is that the flat’s lease must cover buyers until they are aged 95, in line with the authorities’ push to get people to buy homes that can last them for life. Those who do not meet this condition will get a pro-rated amount depending on the lease.

With this change, an eligible first-timer family earning $4,800 a month and buying a new four-room flat in a mature estate from the HDB can get $45,000 in grants, compared to $5,000 under the old system.

As for resale flat buyers, they may get up to $160,000 in grants – a third more than before.

Separately, the household income ceiling to buy new flats and Executive Condominiums has been raised by $2,000 – to $14,000 and $16,000 respectively. The income ceiling last rose four years ago.

Announcing these changes, Minister for National Development Lawrence Wong said they simplify the grant structure and increase affordability for first-time buyers.

He added that the HDB will likely increase the BTO supply in 2020 to meet the anticipated additional demand for public housing arising from these changes. 

Image: Lawrence Wong’s Facebook