Purchasing a home in Singapore can be one of the most significant financial decisions you’ll ever make. Fortunately, the Central Provident Fund (CPF) offers various housing grants to ease the financial burden for eligible homebuyers. In this article we’ll walk you through the different CPF housing grants available and how you can maximize them to achieve your homeownership dreams.
Types of CPF Housing Grants
1. Enhanced CPF Housing Grant (EHG)
If you are a first-timer applicant, you may be eligible for the Enhanced CPF Housing Grant (EHG) to help with your BTO or resale flat purchase.
From 20 August 2024, first-timer families may qualify for an EHG of up to $120,000, while a couple comprising a first-timer and second-timer may qualify for an EHG (Singles) of up to $60,000.
For first-timer households:
- The average gross monthly household income (all applicants and occupiers) for the months worked during the 12-month period must not exceed $9,000
For first-timer and second-timer applicants:
- Half of the average gross monthly household income (all applicants and occupiers) for the months worked during the 12-month period must not exceed $4,500
2. CPF Housing Grants for Resale Flats (Families)
Eligibility:
Your average gross monthly household income must not exceed:
- $14,000
- $21,000 if purchasing with an extended or multi-generation family (refer to the guide for more details)
Source: https://www.hdb.gov.sg/cs/infoweb/residential/buying-a-flat/understanding-your-eligibility-and-housing-loan-options/flat-and-grant-eligibility/couples-and-families/cpf-housing-grants-for-resale-flats-families
3. Proximity Housing Grant (PHG)
If you are buying a resale flat to live with or near your parents/ child, you may apply for the following Proximity Housing Grant (PHG):
- Eligibility:
- For buyers who live near or with their parents or children.
- No income ceiling or age limit.
- Grant Amount:
- $30,000 for living with parents/children.
- $20,000 for living near parents/children (within 4 km).
How to Apply for CPF Housing Grants
Check your household income, citizenship status, and flat type to determine which grants you qualify for.
Apply for an HDB Flat Eligibility (HFE) letter via the HDB Flat Portal for a holistic understanding of your housing and financing options before you embark on your home buying journey. It will inform you upfront of your eligibility to buy a new or resale flat, as well as the amount of CPF housing grants and HDB housing loan you are eligible for.
Approved grants will be credited to your CPF Ordinary Account and used to offset the flat’s purchase price.
If you and your spouse are aged 55 and above and are looking to buy a short-lease 2-room Flexi flat, or aged 65 and above and are looking to buy a Community Care Apartment (CCA), please refer to the section on seniors.
Tips to Maximize Your CPF Housing Grants
- Plan Ahead: Apply for HFE letter early in your home-buying journey to avoid delays.
- Understand the Conditions: Some grants, like the EHG, have requirements for continuous employment or proximity to family. Ensure you meet these conditions before applying.
- Combine Grants: You can combine grants like the EHG, Family Grant, and PHG for maximum financial assistance if eligible.
- Consult a Professional: If in doubt, speak to a real estate agent to guide you through the grant application process.
Conclusion
CPF housing grants are a valuable resource to help you afford your dream home in Singapore. By understanding the various grants available and their eligibility criteria, you can reduce your financial burden and make your home-buying journey smoother. Take the time to explore your options and make informed decisions—your future home is within reach!
