The Housing and Development Board (HDB) plays a pivotal role in Singapore’s residential landscape, not only by providing affordable housing but also by offering various grants and schemes designed to make homeownership more accessible for first-timers.

Understanding these financial aids can significantly reduce the cost burden and make the dream of owning a home a reality.

In this article, we’ll walk you through the various grants and schemes that may be available to you, so you can (hopefully) offset the cost of getting your HDB flat.

Overview of HDB housing grants

HDB housing grants are monetary subsidies provided by the government to help reduce the cost of purchasing HDB flats. These grants are specifically designed to assist various groups of buyers, from couples looking to start a family to singles and low-income earners, making homeownership more attainable for a broader spectrum of the population.

CPF Housing grants

CPF housing grants are available to applicants who meet specific criteria such as income ceilings and family nucleus requirements.

A household’s qualification for housing subsidies and an HDB housing loan is evaluated according to the core family nucleus. This nucleus consists of the applicant(s) and occupier(s) essential for meeting the eligibility criteria for purchasing the flat – for instance:

• A fiance and fiancee buying an HDB flat together
• A married couple and their child or children buying a flat together
• A parent buying a flat with their child
• Orphaned siblings buying a flat together

There are a few different grants which are available, including the Enhanced CPF Housing Grant (Families) which is for first-timer applicants (regardless of whether you’re buying a new or resale flat), and the CPF Housing Grant for Resale Flats, which is for families purchasing a resale flat.

Enhanced CPF Housing Grant (Families)

This grant is specifically for first-timer applicants, including couples comprising of two first-timers and couples comprising of one first-timer and one second-timer.

For couples where both the individuals are first-timers, you may qualify for a grant of up to $80,000. The average gross monthly household income (including all applicants and occupiers) for the months worked during the 12-month period must not exceed $9,000.

For couples where one individual is a first-timer and one is a second-timer, you may qualify for a grant of up to $40,000. Half of the average gross monthly household income (including all applicants and occupiers) for the months worked during the 12-month period must not exceed $4,500.

In addition to this, the core occupiers must have worked continuously for at least 12 months, 2 months before the HFE letter application, and be working at the time of the HFE letter application.

To learn more about the grant, click here.

CPF Housing Grant for Resale Flats

The CPF Housing Grant for Resale Flats is for families purchasing a resale flat, with the exception of parents who are buying over their child’s flat.

At least 1 core applicant or core occupier needs to be a first-timer in order to receive the housing grant, which means they must not have taken any housing subsidy before.

On top of that, the family’s average gross monthly household income must not exceed $21,000 if they are making a purchase with an extended or multi-generation family, or $14,000 if they are making a purchase with a non-extended family.

The amount of grant is dependent on the size of the resale flat, whether the household is made up of first-timers, and the status of the family unit (whether it comprises of two Singaporean citizens, a Singaporean citizen and a Permanent Resident, etc):

First-timer couples buying a 2- to 4-room resale flat:

• Singapore Citizen + Singapore Citizen: $80,000
• Singapore Citizen + Singapore Permanent Resident: $70,000

First-timer couples buying a 5-room or bigger resale flat:

• Singapore Citizen + Singapore Citizen: $50,000
• Singapore Citizen + Singapore Permanent Resident: $40,000

First-timer and second-timer couples buying a 2- to 4-room resale flat:

• $40,000

First-timer and second-timer couples buying a 5-room or bigger resale flat:

• $25,000

To learn more about the grant, click here.

Proximity Housing Grant (Families)

The Proximity Housing Grant aims to encourage Singaporeans to live closer to or with their parents for stronger family support. Singles and families can receive a grant of up to $30,000, depending on whether they choose to live near or with their parents and children. This initiative not only fosters family closeness but also facilitates mutual care and support.

There are two ways in which you may apply for the Proximity Housing Grant.

Firstly, if you wish to live with your parents or children in a resale flat that you are intending to purchase, you may be eligible for a grant of $30,000. Note that your parents or children must be included in the resale flat as co-applicants or essential occupiers.

Secondly, if your parents or children are living in an HDB flat or private residential property which is within 4km of the resale flat you intend to buy, you may be eligible for a grant of $20,000.

If your parents or children are living in a private residential property that they do not own, note that it must be owner-occupied by immediate family members, i.e. child or adopted child, parent(s) or parent(s)-in-law, or siblings. If your parents or children are living in a private residential property which they are renting from non-immediate family members, you will not be eligible to receive the grant.

To learn more about the grant, click here.

Proximity Housing Grant for Singles

This is essentially the same as the Proximity Housing Grant that we’ve just covered, but for single applicants who are unmarried.

These applicants must be 35 years or above, and they may purchase a resale flat on their own, with other single citizens, or their parents.

This scheme is also applicable to individuals aged 21 or above who are buying a resale flat with their non-resident spouse.

To learn more about the grant, click here.

Step-Up CPF Housing Grant

Specifically aimed at assisting lower-income families living in 2-room Flexi flats in non-mature estates to ‘step-up’ to a 3-room flat, this grant provides an additional $15,000. It helps families needing more space due to growing family sizes and is only applicable for their second HDB purchase.

With the Step-up CPF Housing Grant, there are several eligibility conditions to take note of.

Firstly, the applicants have to be currently living in a 2-room HDB flat in a non-mature estate that is either bought from HDB after October 1995, or bought on the open market with a CPF housing grant. Applicants who are living in public rental flats are also eligible.

Next, applicants need to purchase a 3-room flat from HDB or the open market in a non-mature estate. For applicants who were previously living in public rental flats, they will need to purchase either a 2-room flat from the open market, or a 2-room Flexi flat or 3-room flat from the open market or from HDB. The flat will need to be in a non-mature estate as well.

Next, the core occupiers must have worked continuously for at least 12 months, 2 months before the HFE letter application, and be working at the time of the HFE letter application.

Finally, the average gross monthly household income (including all applicants and occupiers) for the months worked during the 12-month period must not exceed $7,000.

To learn more about the grant, click here.

Fresh Start Housing Scheme

This scheme helps second-timer families with children residing in public rental flats to purchase a new 2-room Flexi flat with lease options ranging from 45 to 65 years. The scheme includes a Fresh Start Housing Grant of up to $35,000.

Households under the Fresh Start Housing Scheme will be able to buy a 2-room Flexi or 3-room flat on a shorter lease in BTO, SBF exercises, and open booking of flats. These leases will be more affordable that flats with the typical 99-year lease.

To qualify for the Fresh Start Housing scheme, the applicant’s family must meet several conditions.

Firstly, the applicant may either be married, divorced or widowed. The applicant and their spouse (if applicable) has to be between 35 and 54 years of age. Either the applicant or their spouse, and at least 1 of their children (aged 18 or younger) must be Singapore citizens.

Next, the applicant and their spouse (if applicable) must have previously taken a housing subsidy and must now form a second-timer nucleus with their children.

Next, either the applicant or their spouse has to be in stable employment in the preceding 12 months, and employed at point of application. The average gross monthly household income must not exceed $7,000, and all individuals in the household should not own other properties overseas or locally, and should not have disposed of any within the last 30 months.

They have to also have occupied a public rental flat for at least 1 year, without accumulating 3 or more months of rental arrears in the preceding 12 months. On top of that, they must not have received any public rental tenancy discount/grant under the Relocation, Sale of Flat to Sitting Tenants, or Rent & Purchase Scheme.

Finally, the applicant will need to qualify for the Letter of Social Assessment (LSA) from HDB. To qualify for the LSA, the applicant’s family will be assessed based on (i) family stability, (ii) employment stability, (iii) ability to manage their finances well, and (iv) regularity of school attendance for all children below 16 years old.

To learn more about the grant, click here.

The application process for housing grants and schemes

Applying for HDB grants involves several steps, starting with determining your eligibility through the HDB website. Applicants should gather necessary documents such as income statements and family nucleus proof, submit an application, and wait for HDB’s assessment and approval. Being thorough and accurate in your application can expedite the process and increase your chances of approval.

Are there any catches?

While HDB housing grants provide substantial financial relief, there are several caveats and conditions that applicants should be aware of. Understanding these can help you navigate potential complexities and ensure that you’re fully prepared for the responsibilities that come with accepting these grants.

1. Eligibility conditions

First and foremost, each grant comes with its specific set of eligibility criteria, which may include income ceilings, family nucleus requirements, and conditions regarding the applicants’ previous property ownership.

For instance, with HDB housing grants, there are strict eligibility criteria that often require at least one applicant to be a Singapore citizen. For most grants, including the CPF Housing Grant and the Additional CPF Housing Grant, at least one co-applicant must be a Singapore citizen, and the household must include at least one other Singapore citizen or Singapore Permanent Resident.

For couples where both partners are Singapore Permanent Residents (PRs), they may be eligible for the Half-Housing Grant if they are first-time applicants. However, the range and amount of grants available to such couples are typically more limited compared to those where at least one partner is a citizen.

2. Repayment of grants

When you sell your HDB flat, the grant amount you initially received is credited back into your CPF account along with accrued interest. This means you must return not only the original grant amount but also the interest that would have been earned if the funds had remained in your CPF account. This accrued interest can significantly increase the total amount you need to repay, impacting your net proceeds from the sale.

For homeowners planning to upgrade to a larger HDB flat or a private condo, it’s crucial to carefully calculate these figures. After accounting for the repayment of the grant and the accrued interest, the remaining proceeds might be less than expected, potentially affecting your budget for your next home purchase. Proper financial planning and understanding of these factors are essential to ensure that your next property move aligns with your financial goals and capabilities.

3. Impact on subsequent property purchases

Receiving a housing grant for your first HDB flat can also affect your eligibility for future grants if you decide to purchase another HDB property. For instance, those who have already received a CPF Housing Grant may not be eligible or may receive a reduced amount for certain other grants if they purchase another flat. It’s important to consider your long-term housing plans when applying for a grant.

4. Limitations on property choices

Some grants, particularly those aimed at lower-income families or specific schemes like the Fresh Start Housing Scheme, may limit the type of properties you can purchase. For example, you might be restricted to certain sizes or types of flats, or to properties in non-mature estates. These limitations are designed to ensure the sustainability of the grant system but can restrict your options.

A final word on HDB housing grants

Leveraging available HDB grants and schemes can markedly reduce the financial strain of purchasing your first home. By staying informed and planning carefully, you can maximize these opportunities to secure a home that meets your needs and budget.

For more detailed information or personalized advice, visit the HDB website to find out more. Best of luck in your home-buying journey!

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