How Enhanced CPF Housing Grant affects You?

Published on 01 Nov 2019

👍 More Affordable and Accessible Homes for Singaporeans: Enhanced CPF Housing Grant for First-Timers and Higher Income Ceilings

MND Minister, Lawrence Wong announced various measures including Enhanced CPF Housing Grant on 11 September 2019 to make HDB flats more affordable for Singaporeans. 😊

The measures will help more Singaporeans from lower to upper-middle income households buy their first homes and start a family.

MND and HDB will enhance housing grants and raise the income ceilings for flat buyers.

Skip to Summary below to understand how it will affect you. 

Enhanced CPF Housing Grant

What are the New Changes? 📋

To support Singaporeans in buying a flat, HDB provides various housing grants to eligible flat buyers.

MND and HDB introduce a new Enhanced CPF Housing Grant (EHG) to replace the existing AHG1 and SHG. To benefit more first-timer home seekers, the EHG will be made available to eligible buyers2, regardless of whether they purchase a new or resale flat. There are also no restrictions on flat buyers’ choice of flat type and location3.

Eligible first-timer families will be able to enjoy an EHG of up to $80,0004,5 when they buy a flat that can cover them and their spouses to the age of 95. This is to ensure that all Singaporeans will be able to live comfortably in a home that can last them for life. Eligible families who buy a flat that does not meet this condition will still benefit from the EHG, but the amount will be pro-rated based on the extent that the remaining lease can cover them to the age of 956. Eligible first-timer singles aged 35 and above, and earning not more than $4,500 a month, can also enjoy an EHG (singles) of up to $40,000, and are subject to the same conditions.

🏠 As an illustration, an eligible first-timer family earning $4,800 a month buying a 4-room BTO flat in a mature estate will now enjoy an EHG of $45,000, compared to $5,000 in AHG today. If the same family bought a 4-room resale flat with a remaining lease that can cover the buyers and their spouses to the age of 95, they will now enjoy an EHG of $45,000, on top of the $50,000 in CPF Housing Grant they currently get7.

Higher Income Ceilings 💰

To provide more citizen households with access to affordable housing options, the monthly household income ceiling will be increased from $12,000 to $14,000 for eligible families to:

a) Buy a flat from HDB;

b) Buy a resale flat on the open market with a CPF Housing Grant; and

c) Get an HDB housing loan for the purchase of a new or resale flat.

The monthly household income ceiling for eligible first-timer singles aged 35 and above will also be raised from $6,000 to $7,000.

MND and HDB will also raise the monthly household income ceiling from $14,000 to $16,000 for citizen households to buy an Executive Condominium (EC) unit from property developer8. See Annexes C and D for details.

The EHG and the revised income ceilings will be implemented from 11 September 2019. To meet the anticipated additional demand for public housing arising from these changes, HDB will likely have to increase the BTO supply in 2020. See Annex A and Annex B for details.


If you are resale flat seller:

  1. Resale price may increase. As more grants allow the buyers to increase their budget.
  2. Easier to sell your unit as more buyers to go for Resale with the extra grant instead of BTO.
  3. Easier to upgrade to private property.

If you are a buyer:

  1. You can now buy a bigger resale flat or better location.  As more grants allow you to increase your budget.
  2. You can afford to buy a resale flat in better location instead of  BTO.  As the grants are more for the resale flat.
  3. If your household monthly income not higher than $14k or $16k, you can now buy a BTO or new EC.

1 Those buying resale flats can also qualify for Proximity Housing Grant if living with or near their parents/children, but this is not unique to first-timers.
2 To be eligible for the EHG, the monthly household income has to be $9,000 or less. The flat applicant, or spouse/fiancé(e) must also be in continuous employment for at least 12 months before the flat application, and remain working at the point of flat application.
3 Unlike the SHG, which is restricted to purchases of 4-room or smaller new flats in non-mature estates.
With the new EHG, eligible first-timer families buying a resale flat may now enjoy up to $160,000 of housing grants, comprising an EHG of up to $80,000, a CPF Housing Grant of up to $50,000, and a Proximity Housing Grant of up to $30,000.
5 As the practice today, should their total grant amount exceed 95% of the flat price, they will need to pay 5% of the flat price using their CPF or cash savings; the remaining sum will be fully covered by the grant. Any excess grant amount will go into their CPF Special/Retirement Account and Medisave Account in equal portions. If there is a valuation, the housing grants will be used to pay up to 95% of the lower of the flat price or the valuation. The remaining sum will have to be paid using the buyers’ own CPF and/or cash savings.

The pro-ration of the EHG takes reference from the pro-ration used for CPF usage and HDB housing loan financing, as announced in May 2019.
If the couple is living with or near their parents, they can also enjoy a Proximity Housing Grant of up to $30,000.
8 There is no change in income ceiling for CPF Housing Grant for ECs.


Plan For Yourself is very Important!

As a lot of people never plan anything before going to view the resale flat, they usually end up wasting a lot of time for less ideal unit; thereby they are stucked with the HDB flat that they have to hold for decades.

I suggest we have a short meet up first where I can share with you based on your case and what is the best scenario moving forward and based on your budget now what are the flat best suit you!

Register for Non-Obligatory Discussion:

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How Enhanced CPF Housing Grant affects you?
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