Taking the first step in making a good decision on your first property purchase will give you a better overall real estate experience. While property prices have moved up over the years, Singaporeans who wish to purchase their first HDB property should not allow this to get into their way.
The CPF housing grants was introduced on 3rd March 2006, to help Singaporeans with their first HDB property purchase. Determined mainly by household income, the grants aimed to assist Singaporeans financially, when it comes to owning a property.
The first step to applying for the CPF Housing Grants is to check the eligibility criteria.
Eligibility to apply for CPF Housing Grants
- Singapore Citizen – At least 1 of the applicant has to be Singapore Citizen
- First Timer – Have not receive any previous housing subsidy
- Employment – You and/or your spouse/fiancé(e) are employed at the time you submitted the flat application, and have been continuously employed for the 12 months prior to the flat application
- Remaining Lease – 30 years or more
- Previous Ownership – You and the other flat applicant must not own any of the below property whether locally or overseas, or have disposed of any such properties in the 30months before your new flat application
- Private Residential Property (Including HUDC/EC)
- House
- Building
- Land
Once you have fulfilled the above criteria, you can then take a look at the subsidies available.
For New Flat Purchase (Direct from HDB):
Additional CPF Housing Grant (AHG)
- 2Room Flexi or Larger
- $5,000 Income Ceiling for Couple
- $2,500 Income Ceiling for Singles
- Up to $40,000
Special CPF Housing Grant (SHG)
- 3Room Flexi, 4Room or 5Room in non-mature estate (For First Timer Scheme and First Timer/Second Timer Scheme)
- 2Room Flexi in non-mature estate (For Non Citizen Spouse Scheme, Single Singapore Citizen Scheme, Joint Singles Scheme and Orphan Schemes)
- $8,500 Income Ceiling for Couple
- $4,250 Income Ceiling for Singles
- Up to $40,000
| Average Monthly Household Income Over 12 Months | AHG | SHG | Total | ||
| From November 2015 Sales Launch | From November 2015 Sales Launch | ||||
| Up to $1,500 | $40,000 | $40,000 | $80,000 | ||
| $1,501 to $2,000 | $35,000 | $40,000 | $75,000 | ||
| $2,001 to $2,500 | $30,000 | $40,000 | $70,000 | ||
| $2,501 to $3,000 | $25,000 | $40,000 | $65,000 | ||
| $3,0001 to $3,500 | $20,00 | $40,000 | $60,000 | ||
| $3,501 to $4,000 | $15,000 | $40,000 | $55,000 | ||
| $4,001 to $4500 | $10,000 | $40,000 | $50,000 | ||
| $4,501 to $5,000 | $5,000 | $40,000 | $45,000 | ||
| $5,001 to $5,500 | Nil | $35,000 | $35,000 | ||
| $5,501 to $6,000 | Nil | $30,000 | $30,000 | ||
| $6,001 to $6,500 | Nil | $25,000 | $25,000 | ||
| $6,501 to $7,000 | Nil | $20,000 | $20,000 | ||
| $7,001 to $7,500 | Nil | $15,000 | $15,000 | ||
| $7,501 to $8,000 | Nil | $10,000 | $10,000 | ||
| $8,001 to $8,500 | Nil | $5,000 | $5,000 | ||
There are many ways that the CPF Housing Grants (AHG) (SHG) are granted, based on the different schemes available:
- First Timer Scheme
- First Timer / Second Timer Scheme
- Non-Citizen Spouse Scheme
- Single Singapore Citizen Scheme
- Joint Singles Scheme / Orphan Scheme
While you are calculating the Grants you might be eligible for, you might be wondering, how will this impact you?
Take the following scenario for example:
Ryan (28 years old) earns $2,500 per month
Shirley (26 years old) earns $1,500 per month
Assuming that there are no other liabilities, how will CPF Housing Grant assist them in purchasing a 4-Room flat priced at $300,000?
AHG eligible = $15,000
SHG eligible = $40,000
Total Grants = $55,000
| Before Grants | After Grants | |
| Purchase Price | $300,000 | $300,000 |
| 10% CPF | $30,000 | $30,000 |
| Grant | $0 | $55,000 |
| Loan | $270,000 | $215,000 |
| MI @ 25years | $1,225 | $975 or $1247@18years |
With the assistance of the grant, the loan tenure can effectively be shortened by 7years or a lower monthly instalment to manage affordability.
Resale Flat Purchase (Direct from Open Market):
For those of us who are not hard up for houses that come shiny and new, we have the option of buying a resale property. Buying a resale property from open market allows you to take possession of the property faster than buying a BTO direct from HDB. Furthermore, you get to choose to live in the estate that you desire, and most importantly, the added option of living close to your parents or in-laws.
CPF Housing Grants available:
- Family Grant
- Half Housing Grant
- Singles Grant
- Additional Housing Grant (AHG)
- Proximity Housing Grant (PHG)
Family Grant
- Directly from Resale Open Market
- 21 years old when submitting flat application
- Both Owner to be first timer applicant
- 4Room & Below $50,000
- 5Room & Above $40,000
Half Housing Grant
- Directly from Resale Open Market
- 21 years old when submitting flat application
- One Owner to be first timer applicant
- 4Room & Below $25,000
- 5Room & Above $20,000
Singles Grant
- Directly from Resale Open Market
- 35 years old when submitting flat application
- All owner to be first timer applicant
- 4Room & Below $25,000
- 5Room & Above $20,000
AHG
A first-timer household may be eligible for 1 of the following AHGs:
- AHG for Family of up to $40,000
- AHG for Singles of up to $20,000
AHGs are available for first-timer households where at least 1 applicant has worked continuously for 12 months before applying for the flat, and is still working when the resale HDB flat application is submitted.
AHG for Family
The AHG amount receivable depends on the average gross monthly household income for the 12 months prior to you submitting your flat application. Applicants with lower household incomes will receive a larger grant amount.
| Average Monthly Household Income Over 12 Months | AHG for Family |
| Up to $1,500 | $40,000 |
| $1,501 to $2,000 | $35,000 |
| $2,001 to $2,500 | $30,000 |
| $2,501 to $3,000 | $25,000 |
| $3,001 to $3,500 | $20,000 |
| $3,501 to $4,000 | $15,000 |
| $4,001 to $4,500 | $10,000 |
| $4,501 to $5,00 | $5,000 |
AHG for Singles
The AHG for Singles is available to eligible:
- FT/ST couples
- Orphans Scheme applicants
- Singles living with their parents
The grant amount will be based on the average gross monthly household income (halved) for 12 months, prior to submitting the application.
| Half of Average Monthly Household Income Over 12 Months | AHG for Singles |
| Up to $750 | $20,000 |
| $751, $1,000 | $17,500 |
| $1,001 to $1,250 | $15,000 |
| $1,251 to $1,500 | $12,500 |
| $1,501 to$1,750 | $10,000 |
| $1,751 to $2,000 | $7,500 |
| $2,001 to $2,250 | $5,000 |
| $2,251 to $2,500 | $2,500 |
Proximity Housing Grant (PHG)
The PHG (of up to $20,000) helps families who want to buy a Resale HDB flat either to live in with their parents or near their parents, or married child/children. Eligible singles can also enjoy a PHG if they buy a Resale HDB flat with their parents. The PHG is applicable to both first-timers and second-timers.
First-timer and second-timer buyers of resale HDB flats can apply for the PHG if they meet these conditions:
| Citizenship | You are a Singapore Citizen.
· Family: Your family nucleus must comprise at least another Singapore Permanent Resident or Singapore Citizen · Singles: At least one of your parents or married child must be a Singapore Permanent Resident or Singapore Citizen |
| Age | · Family: You must be aged 21 years or above
· Singles: You must be aged 35 years or above |
| Family Nucleus | · Family: You are applying with your:
o Spouse and children (if any), or o Fiancé/fiancée, or o Children under your legal custody, care and control (if widowed or divorced) · Singles: You are applying with your parents |
| Household Status | You have not received the PHG previously |
| Proximity condition | · Family: Your parents/married child are:
o Living with you in the DBSS flat o Living in an HDB flat in the same town or within 2km o Owner-occupants of private property in the same town or within 2km · Singles: Your parents are living with you in the DBSS flat |
The amount of grant received depends on the household’s citizenship.
| Grant Type | Amount | |
| Family | Singles | |
| Proximity Housing Grant | $20,000 | $10,000 |
Once again, let us take the same scenario for example:
Ryan (28) earns $2,500 per month
Shirley (26) earns $1,500 per month
Assuming that there are no other liabilities, how will CPF Housing Grant assist them for a $300,000 purchase of a 4Room flat?
Family Grant = $40,000
AHG = $15,000
PHG = $20,000.
Total Grant = 75,000
| Before Grants | After Grants | |
| Purchase Price | $300,000 | $300,000 |
| 10% CPF | $30,000 | $30,000 |
| Grant | $0 | $75,000 |
| Loan | $270,000 | $195,000 |
| MI @ 25years | $1,225 | $885 or $1242@16years |
With the assistance of the grant, the loan tenure can effectively be shortened by 9years or a lower monthly installment to manage affordability.
How much worth of grants am I/are me and my spouse eligible for?
Is all of the above info too much to handle? Well, fret not!
Our friends at stackedhomes have created a simplified way to calculate the amount of grants you can receive when applying for a HDB flat!
Simply click on this link to access to the CPF Housing Grant Quiz that the team from stackedhomes has created, and you can easily find out your eligibility by going through a short questionnaire. (Don’t worry, the quiz does not collect any form of personal information from you.)
