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    CPF Housing Grant for Family

    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.

    CPF Housing Grant for new HDB purchase

    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.

    First-time applicants

    When you apply for an HDB flat for the first time, you might be eligible for the two grants given below:

    • Special CPF Housing Grant (SHG)
    • Additional CPF Housing Grant (AHG)

    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.

    Eligibility

    • You and other flat claimants should not possess any house, building, land or private residential property either overseas or in Singapore. You will not be eligible for the grant if you have sold any such property in the past 30 months prior to your application.
    • The remaining lease on the flat should be 30 years or more.
    • You or your partner are working at the time of submission of your flat application and have been employed continuously for the past 12 months before applying.
    • You and all your co-applicants have not received any previous subsidies.

    How to find out if you are applying for the first time

    A first-time applicant is someone who has not been given any grant from HDB for housing. This means:

    • You have not taken other types of housing subsidy.
    • You have not transferred the possession of a new flat or a resale flat purchased from HDB with a CPF Housing Grant.
    • You have not sold a flat purchased from HDB.
    • You are not the owner of a flat purchased from HDB.
    • You have not purchased a DBSS flat, Executive Condominium (EC) or an HDB resale flat using the CPF Housing Grant, or taken possession of a flat or EC.

    How to apply for an AHG or SHG

    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.

    Usage

    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.

    Second-time applicants

    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.

    Eligibility

    • The remaining lease for the flat should be for 30 years or more.
    • You or your partner are working at the time of submission of your flat application and have been employed continuously for the past 12 months before applying.
    • Your current flat should be a two-room subsidised flat in a non-mature estate. It should have been purchased after October 1995 from HDB or from the resale market using a CPF Housing Grant. It should also be your first subsidised flat.

    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.

    Usage

    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.

    First-timer and Second-timer couple applicants

    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.

    Non-citizen spouse scheme

    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.

    CPF Housing Grant for purchasing a resale HDB flat

    First-time applicants

    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
    Singapore Citizen S$40,000 S$50,000

    Eligibility for getting the Family Grant

    • Your family must have a citizen of Singapore and a citizen or permanent resident.
    • Your family should consist of you and your spouse or fiancé (relevant certificates required before flat purchase) and children (if any) under legal protection (if divorced).
    • You are 21 years or older.
    • You should not be the titleholder of a flat purchased from HDB, DBSS or condominium.
    • You have not disposed a flat purchased from HDB, or a DBSS/EC flat.
    • You have not acquired any form of housing subsidy.
    • You have not acquired any CPF Grant for buying a resale flat.
    • Your average monthly household income should not be more than S$12,000 or S$18,000 if you are applying with family. The cap is fixed at S$18,000 to persuade working people and their parents to stay as an extended family in a house.
    • You and other flat claimants must not possess any house, building, land or private residential property either overseas or in Singapore. You will not be eligible for the grant if you sold any such property in the past 30 months prior to your application.

    Income document guidelines

    To get the family grant, you along with other applicants and occupiers of the flat must arrange:

    • Proof of unemployment.
    • 12 months’ of income details for other types of work.
    • Latest 3 months’ salary slips if working full-time.

    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:

    • Sustenance
    • Stipend
    • Pension
    • Allowances paid on a regular basis

    The following income will not be taken into consideration for the income ceiling:

    • Scholarship allowance received overseas
    • Alimony allowance
    • Director fees
    • Bonuses
    • Rental income
    • Income from working overtime
    • National Service Allowance
    • Interest from deposit accounts

    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:

    • Your income per month for past 12 months prior to flat application should not go beyond S$5,000.
    • You and your spouse must be working continuously for 12 months prior to flat application and still be employed during the flat application.

    Income guidelines for AHG

    The following income will be taken into consideration for the income ceiling:

    • Stipend
    • Allowances received regularly such as payments for uniform, laundry, transport and more.

    The following income will not be taken into consideration for AHG income cap:

    • Scholarship allowance received overseas
    • Alimony allowance
    • Director fees
    • Bonuses
    • Rental income
    • Income from working overtime
    • National Service Allowance
    • Interest from deposits

    First-time and Second-time Couple Applicants

    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

    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.

    Enhancements extended to families

    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:

    • Right now, families purchasing resale flats for the first time can get up to S$90,000 in the form of grants that comprise Additional CPF Housing Grant (up to S$40,000), CPF Housing Grant (S$30,000) and Proximity Housing Grant ($20,000).
    • The Ministry of National Development or MND has raised the CPF Grant to assist young couples to purchase a resale flat. More help will be provided to people purchasing small flats to persuade them to opt for practical housing options. The grant amount will be raised:
    1. From S$30,000 to S$40,000, for families purchasing a 5-room or larger resale flat for the first time.
    2. From S$30,000 to S$50,000, for families purchasing a 4-room or smaller resale flat for the first time.
    • Along with the Proximity Housing Grant and Additional CPF Housing Grant, qualified families purchasing resale flats for the first time can now get up to S$110,000 in grants.
    • The improved CPF Housing Grant offers people purchasing home for the first time, more options when it comes to affordable housing. Apart from purchasing a Build-to-Order flat, couples can select from a variety of resale flats available in the market. The improved CPF Grant will help people who have a liking for a certain location or who want to move into their own residence early.
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