In Singapore, property prices are quite expensive, so the Government of Singapore offers help to those who cannot afford private properties through housing grants. Housing grants ensure all citizens of Singapore have a roof over their head. The government offers a host of housing grants and each grant has its own features and eligibility criteria.
The government offers CPF Housing Grant depending on the type of homes you are looking to purchase: Design, Build and Sell Scheme or DBSS flats, executive condominiums or Housing & Development Board or HDB flats. Here we will concentrate only on the various grants offered to purchase HDB flats. The eligibility, price and the amount of grant also vary depending on whether the HDB flat is new or if it is up for resale.
As per CPF Housing Grant offered by the government for purchasing a new flat, there are six different schemes and buyers can receive an amount of up to S$80,000 as part of the grant.
When you apply for an HDB flat for the first time, you might be eligible for the two grants given below:
As part of AHG, if you want to purchase a 2-room flat or a bigger flat, you may be offered a sum of up to $40,000, depending on your household income. On the other hand, as part of SHG, if you want to purchase a 2-room or a bigger flat in an estate which is non-mature, you may be offered a sum of up to $40,000, depending on your household income. The conditions applied for the two grants are almost the same except for the income ceiling. To get AHG, the income ceiling is up to S$5,000 per month while for SHG the income ceiling is up to S$8,500 per month.
A first-time applicant is someone who has not been given any grant from HDB for housing. This means:
If you are eligible, you can download the application form and complete it and submit to HDB during the appointment. While booking the flat, do not forget to carry the required income documents for the past 12 months.
You can use the CPF Housing Grants to bring down the mortgage loan for purchasing a flat or you can offset the purchase cost of the flat. However, you cannot use the grant for paying the down payment or monthly instalments. In case you are purchasing the flat using a bank loan, the grant will be considered when computing the CPF withdrawal limit.
The CPF Housing Grant is open to second-time buyers applying for another subsidised HDB flat. The second flat will be a new 3-room flat in a non-mature estate and the grant amount will be $S15,000.
How to apply
If you are eligible for a second CPF Housing Grant, you will be provided with the application form for the Step-Up CPF grant. When you come to book the flat, remember to bring your required income documents of the past 12 months.
You can use the CPF Housing Grants to bring down the mortgage loan for purchasing a flat or you can offset the cost of the flat. However, you cannot use the grant for paying the down payment or monthly instalments. In case you are purchasing the flat using a loan, the contribution will be considered when computing the CPF withdrawal.
A sum of up to S$20,000 will be given depending on half of the average income per month over the past 12 months with a cap of S$4,250. Both aspirants must not own any private residential property, land, building or house in Singapore or overseas. They also must not have sold any such properties in the last 30 months. Eligibility criteria, procedure to apply and usage is similar to first-time applicants.
As per non-citizen spouse scheme, you can apply for a two-room flat in an estate which is non-mature. You will be eligible for a sum of up to $20,000 that depends on half of the average income per month over a period of 12 months with a cap of S$4,250. You also must not possess any private residential property, land and building or house whether locally or abroad. You also are not allowed to sell any such property in the past 30 months before your new flat application.
All eligible first-time claimants could apply for Additional CPF Housing Grant (AHG) or Family Grant. The Family Grant acts as an aid for all engaged or married couples and families who wish to purchase a resale flat. The recipients of Family Grant may qualify for Additional CPF Housing Grant or Citizen Top-up later in their life.
|Household||5 room or a larger resale flat||2 to 4 room resale flat|
|Singapore Citizen/Permanent Resident||S$30,000||S$40,000|
Eligibility for getting the Family Grant
Income document guidelines
To get the family grant, you along with other applicants and occupiers of the flat must arrange:
Apart from the papers mentioned above, you may also have to submit more documents if needed. The following income will be taken into consideration for the income ceiling:
The following income will not be taken into consideration for the income ceiling:
Additional CPF Housing Grant
The Additional CPF Housing Grant is given to low-income claimants of the Family Grant. At least one of the claimants must be working uninterrupted for 12 months before applying for the flat and must still be working at the time of application. The additional CPF Housing Grant ranges from S$5,000 to S$40,000. The grant is stepped up as per income brackets. It offers families with lower-income a larger grant.
Eligibility for getting the Additional Grant
You will have to be eligible for a Family Grant prior to sending an application for the additional grant. Also, you must fulfil the following conditions:
Income guidelines for AHG
The following income will be taken into consideration for the income ceiling:
The following income will not be taken into consideration for AHG income cap:
If you are applying for a grant for the first time as a citizen engaged or married to a person who is applying for the second time, you can apply for a Top-Up Grant or Half-Housing Grant, together with the Additional CPF Housing Grant (AHG).
With the half-housing grant, you will get up to S$25,000 for a two bedroom flat, and S$20,000 for a five bedroom flat. To be eligible for this grant, your average total household income per month must not go beyond S$12,000 or S$18,000 if you are applying with your family.
Proximity Housing Grant of S$20,000 was announced to help families who wish to purchase a resale flat, to stay with or close to their parents or married child. Qualified singles will also be eligible for a grant of S$10,000 if they purchase a flat to stay with their mother and father. This grant can be included with other grants, like the CPF Grant for family.
Singapore’s Finance Minister, Heng Swee Keat made an announcement earlier this year about an increase in the CPF Housing Grant meant for families purchasing resale flats for the first time. This increase adds to the government’s prevailing efforts to deliver affordable housing to homebuyers. Let us now take a look at the enhancements of the grant for families who are applying for the grant for the first-time: