The enhanced CPF housing grant for first-time buyers: What you should know

The Enhanced CPF Housing Grant (EHG) is a significant initiative aimed at making housing more affordable for first-time buyers in Singapore. Introduced in September 2019, the EHG replaces the Additional Housing Grant (AHG) and the Special CPF Housing Grant (SHG), offering a more streamlined and accessible approach to housing grants. This guide provides a comprehensive overview of the EHG, its eligibility criteria, and how it benefits first-time Build-To-Order (BTO) and resale flat buyers.

The EHG is designed to assist first-time buyers of both BTO and resale flats. It provides financial support based on the average monthly income of the household, ensuring that lower-income families receive more substantial assistance. The grant offers up to $80,000 for eligible families and up to $40,000 for singles purchasing their first home.

Eligibility Criteria for EHG

To qualify for the EHG, applicants must meet specific criteria:

Income Ceiling: The household's average monthly income should not exceed $9,000. For singles, the income ceiling is set at $4,500.

Employment Requirements: At least one applicant must be continuously employed for the 12 months preceding the flat application and remain employed at the point of application.

Flat Lease: The purchased flat must have a lease that covers the buyers until the age of 95 to receive the full grant amount. If the lease is shorter, the grant will be pro-rated accordingly.

Grant Amounts and Benefits

The EHG offers varying grant amounts based on household income:

• Families: Up to $80,000
• Singles: Up to $40,000

The grant amount decreases as the household income increases. For example, a household earning less than $1,500 per month can receive the maximum grant of $80,000, while a household earning between $8,501 and $9,000 would receive $5,000.

Comparison with Previous Grants

The EHG simplifies the housing grant landscape by replacing both the AHG and SHG. Previously, the AHG was capped at $40,000 and was only available to resale flat buyers, while the SHG was limited to BTO buyers in non-mature estates. The EHG, however, is applicable to both BTO and resale flats, regardless of location or flat size, making it more versatile and accessible.

Additional Grants for Resale Flat Buyers

First-time buyers of resale flats can combine the EHG with other grants, such as the CPF Housing Grant and the Proximity Housing Grant (PHG), potentially receiving up to $190,000 in total grants. This combination significantly reduces the financial burden of purchasing a resale flat at market prices.

Strategic Benefits of the EHG

The EHG provides several strategic benefits for first-time homebuyers:

Affordability: By offering substantial financial support, the EHG makes homeownership more attainable for lower-income families.

Flexibility: The grant's applicability to both BTO and resale flats allows buyers to choose a home that best suits their needs and preferences.

Simplification: The consolidation of previous grants into the EHG simplifies the application process and reduces confusion among buyers.

Not only is the Enhanced CPF Housing Grant (EHG) going to be more advantageous in terms of the amount of grant money that first-time house purchasers are eligible to receive, but it is also going to be simpler to comprehend it. This viewpoint is supported by MyNiceHome, which asserts that the EHG contributes to the reduction of housing costs and the expansion of housing opportunities for Singaporeans.

The Enhanced CPF Housing Grant (EHG) is a pivotal development in Singapore's housing policy, offering significant financial assistance to first-time homebuyers. By understanding the eligibility criteria and strategic benefits of the EHG, buyers can make informed decisions and maximize their housing grants. Whether purchasing a BTO or a resale flat, the EHG provides a valuable opportunity for Singaporeans to achieve their homeownership dreams.