HDB’s New Enhanced CPF Housing Grant (EHG) and Higher Income Ceilings: What You Need to Know

HDB recently announced the new Enhanced CPF Housing Grant (EHG) and higher income ceilings for buying HDB flats. Learn all about them here.
CPF HDB enhanced housing grant EHG income ceiling
You'll have to pay back the money you took from your CPF account with accrued interest.

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:

BEFOREAFTER

For new flats (e.g. BTO):

- Maximum grant amount: $80,000 (AHG+SHG;
or $40,000 for mature estates, AHG only)

- Income ceiling to qualify for AHG: $5,000

- Income ceiling to qualify for SHG: $8,500

- SHG restricted to 4-room or smaller flats
in non-mature estates

For new flats (e.g. BTO):

- Maximum grant amount: $80,000 (EHG)

- Income ceiling to qualify for EHG: $9,000

- No restriction on flat type and estates

For resale flats:

- Maximum grant amount: $120,000

- Income ceiling to qualify for $50,000 CPF
Family Grant: $12,000

- Income ceiling to qualify for AHG: $5,000

- SHG not applicable to resale flats

- Proximity Housing Grant (PHG) of $30,000

For resale flats:

- Maximum grant amount: $160,000

- Income ceiling to qualify for $50,000 CPF
Family Grant: $14,000 ($2,000 more)

- Income ceiling to qualify for EHG: $9,000

- Proximity Housing Grant (PHG) of $30,000

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 a 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 of the EHG and the AHG & SHG:

AHG & SHG

EHG

Additional CPF Housing Grant: Up to $40,000

  • For families buying new or resale flats
  • Household income ceiling up to $5,000 per month

Enhanced CPF Housing Grant: Up to $80,000

  • For families buying new or resale flats
  • Any flat type and any location
  • Household income ceiling up to $9,000 per month

For singles earning not more than $4,500 a month, they are also eligible for the EHG (Singles) grant of up to $40,000.

Special CPF Housing Grant: Up to $40,000

  • Only for new flats (up to 4-room) in non-mature estates
  • Household income ceiling up to $8,500 per month

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

HDB resale flats EHG grant

Buyers of old HDB resale flats may not be able to obtain the full grant.

 

How much 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

I'd like to buy an older flat because it'll be cheaper, what EHG amount will I get?

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.

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.

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:

BEFOREAFTER

For new flats (e.g. BTO):

- Maximum grant amount: $80,000 (AHG+SHG;
or $40,000 for mature estates, AHG only)

- Income ceiling to qualify for AHG: $5,000

- Income ceiling to qualify for SHG: $8,500

- SHG restricted to 4-room or smaller flats
in non-mature estates

For new flats (e.g. BTO):

- Maximum grant amount: $80,000 (EHG)

- Income ceiling to qualify for EHG: $9,000

- No restriction on flat type and estates

For resale flats:

- Maximum grant amount: $120,000

- Income ceiling to qualify for $50,000 CPF
Family Grant: $12,000

- Income ceiling to qualify for AHG: $5,000

- SHG not applicable to resale flats

- Proximity Housing Grant (PHG) of $30,000

For resale flats:

- Maximum grant amount: $160,000

- Income ceiling to qualify for $50,000 CPF
Family Grant: $14,000 ($2,000 more)

- Income ceiling to qualify for EHG: $9,000

- Proximity Housing Grant (PHG) of $30,000

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 a 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 of the EHG and the AHG & SHG:

AHG & SHG

EHG

Additional CPF Housing Grant: Up to $40,000

  • For families buying new or resale flats
  • Household income ceiling up to $5,000 per month

Enhanced CPF Housing Grant: Up to $80,000

  • For families buying new or resale flats
  • Any flat type and any location
  • Household income ceiling up to $9,000 per month

For singles earning not more than $4,500 a month, they are also eligible for the EHG (Singles) grant of up to $40,000.

Special CPF Housing Grant: Up to $40,000

  • Only for new flats (up to 4-room) in non-mature estates
  • Household income ceiling up to $8,500 per month

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

HDB resale flats EHG grant

Buyers of old HDB resale flats may not be able to obtain the full grant.

 

How much 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

I'd like to buy an older flat because it'll be cheaper, what EHG amount will I get?

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.

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.

The EHG provides more grant amounts to resale flat 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, SBF or ROF flat--is that your household income cannot exceed a certain amount. 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 ECs, because these applicants didn’t meet the eligibility criteria for income ceilings.

The last income ceiling increase was 4 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:

4-room flat or bigger

  • $12,000
  •  $18,000 (for extended or multi-generation families)
  • $6,000 for SIngles
  • $14,000
  • $21,000 (for extended or multi-generation families)
  • $7,000 for Singles

3-room flat

  • $6,000 or $12,000, dependent on project
  • $7,000 or $14,000, dependent on project

Executive Condo

  • $14,000
  • $16,000

2-room Flexi Flat (99 year lease)

  • $6,000 for Singles
  • $7,000 for Singles

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, rhe 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.

 

To get more guides like this, check out PropertyGuru.

 

 

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, SBF or ROF flat--is that your household income cannot exceed a certain amount. 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 ECs, because these applicants didn’t meet the eligibility criteria for income ceilings.

The last income ceiling increase was 4 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:

4-room flat or bigger

  • $12,000
  •  $18,000 (for extended or multi-generation families)
  • $6,000 for SIngles
  • $14,000
  • $21,000 (for extended or multi-generation families)
  • $7,000 for Singles

3-room flat

  • $6,000 or $12,000, dependent on project
  • $7,000 or $14,000, dependent on project

Executive Condo

  • $14,000
  • $16,000

2-room Flexi Flat (99 year lease)

  • $6,000 for Singles
  • $7,000 for Singles

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, rhe 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.

 

To get more guides like this, check out PropertyGuru.

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