The all-new Enhanced CPF Housing Grant (EHG) consolidates the Additional Housing Grant (AHG) and Special Housing Grant (SHG) from 11 September 2019. It aims to provide higher grant amounts at a higher income ceiling.
So what does it mean?
It means eligible first-time flat buyers can apply for an EHG of up to S$80.000. Additionally, this grant is available for families buying either a new or resale flat, regardless of the type and location. Best of all, families with a household income ceiling of S$9,000 per month are eligible to apply.
What Is EHG?
The EHG is a CPF housing grant available for first-time flat buyers who are either:
- Applying for a new Build-To-Order (BTO) flat or
- Buying a resale flat
The aim is to make housing more affordable for ordinary Singaporeans. To know whether you qualify for EHG, you must figure out whether you meet the eligibility requirements. For instance, first-timer families must not exceed a monthly household income of S$9,000.
But how does this grant work?
CPF will calculate your gross monthly household income. Keep in mind that the household income refers to the sum of the gross income of all the working persons in a household. Here are a few basic requirements to consider:
- Monthly household income of not more than S$9,000
- The buyer or his/her spouse must also be in continuous employment for 12 months prior and remain working at the point of flat application.
- Must be at least 35 years of age
- Monthly income of not more than S$4,500
- The buyer must be in continuous employment for 12 months prior and remain working at the point of flat application.
What are the changes in grant eligibility conditions after Enhanced Housing Grant (EHG)?
|Grant up to S$40,000||Grant up to S$80,000|
|For families buying either a new or resale flat but has a restriction on flat types and location||For families buying either a new or resale flat with no restriction on flat type and location|
|Household income ceiling of S$5,000 per month||Household income ceiling of S$9,000 per month|
|–||Eligible singles earning less than S$4,500 a month can apply for EHG (Singles) of up to S$4,000|
How Much EHG Am I Eligible For?
Eligible first-time applicants for new flats may receive an EHG of up to S$80,000. Eligible first-timer singles, on the other hand, can receive up to S$40,000.
Since this grant is designed for families with less income, the amount you can be granted may be inversely proportional to your household income. Take a look at the table below to understand the EHG Structure.
Table from Central Provident Fund Board
How Much Can You Get?
Remember that a CPF housing grant is meant to assist groups who would not otherwise afford to buy a resale flat or a brand new flat. Applicants can get higher housing grants if they have a lower income.
Consider this example:
Couple A has an average monthly household income of S$5,000 and is considering buying a 3-room BTO flat in Tampines, a mature estate. With EHG, Couple A can enjoy a S$40,000 additional CPF housing grant.
How much can you get if you plan to buy a resale flat?
Eligible first-timer households can enjoy up to S$160,000 in housing grants if they plan to buy a resale flat.
- Up to S$80,000 EHG
- Up to S$50,000 CPF Housing Grant
- Up to S$30,000 PHG
For example, Couple B has an average monthly income of S$5,000. They are planning to buy a 4-room resale flat in a mature estate to live near their parents. With EHG, Couple B can enjoy up to S$115,000 in housing grants.
S$115,000 = S$50,000 (CPF housing grant) + S$20,000 (PHG) + S$45,000 (EHG)
Now you have an idea of how much you can get with EHG. But how do CPF housing grants help with your HDB housing loan or bank loan?
HDB Housing Loan vs Bank Loan
HDB Housing Loan
With an HDB housing loan, you have the option to pay for your flat using your CPF savings. But first, you’ll need to present a Home Loan Eligibility Letter (HLE) from HDB. This letter will state how much loan you’re eligible for, as well as the loan tenure.
Your down payment amounts to 10% of the purchase price. You can use your CPF Ordinary Account savings, including your Enhanced Housing Grant (EHG) to make up for the 10%. The rest of the 90% will be paid for using your CPF Ordinary Account.
If you don’t have enough in your OA Savings, then HDB will loan you the rest of the money up to the amount specified in the HLE. Find out more on the best home loan in Singapore
With a bank loan, you’ll need to pay at least 25% of the purchase price. Of that down payment, at least 5% must be in cash. You can use your CPF housing grant to pay for the remaining 20% of your down payment.
EHG vs. Other Types CPF Housing Grants
To better understand the four different types of HDB grants, we can discuss each one of them in detail. Remember that each type is better suited for a particular group of people. You have to know your personal situation in order to pick which of these types better suits you and your needs.
|Type of Grant||Enhanced CPF Housing Grant||Family Grant
(HDB Resale Grant)
|Proximity Housing Grant||Family Grant|
|Applicable For||Couples and families with a monthly average household income of less than S$9,000||Married, engaged couples, or first-timer families||Applicants looking to buy an HDB resale flat to live with or within 4 kilometers from where their parents live.||Applicants who are filing an executive condo application for the first time.|
|Grant Amount||Up to S$80,000||Up to S$50,000||Up to S#30,000||$10,000 up to $30,000 (Singaporean couples)
Up to $20,000 (non-citizen spouse)
|Does It Apply to Singles||Yes||Yes||Yes||No|
Enhanced CPF Housing Grant (EHG) — for HDB BTO & resale
Applicable for: This type of grant is best for couples & families with an average monthly household income of $90,000 or less. The household income is computed by getting the average income of 12 months prior. HDB requires that at least one of the applicants must have worked continuously for at least a year.
Eligibility: New and resale flats are allowed for this grant, including those under Build to Order (BTO), Sale of Balance Flats (SBF), and Re-offer of Balance Flats (ROF). In the case of resale flats, the remaining lease plus the age of the youngest must be equal to at least 95 years. This is to ensure that you stay in the flat long enough. If not, the grant will be prorated.
Grant Amount: The amount ranges from $5,000 to $80,000. Remember that the Enhanced CPF Housing Grant (EHG) is meant for couples belonging to a lower or middle-class income. This means that the lower the household income you get, the higher the grants you can receive.
Does it apply to singles?
The singles grant for this requires the applicant to be at least 35 years old. Also, to qualify, your average gross monthly income should be from $2,500 to $40,000. This would also mean that the grant you will receive will be half of what couples would get.
To know more about EHG, you can check this out from the HDB website.
How to Apply For EHG Grant
Before filing an application for any of the HDB grants mentioned above, you have to ensure that you are eligible. Remember, EHG is for:
- Couples or families who are first-timer applicants looking to purchase an HDB flat or resale flat on the open market
- First-timer Singapore citizen applicants whose fiancé/ fiancée/ spouse has previously taken any housing subsidy.
Additionally, all applicants and occupiers listed in the flat application:
- Must not own or have an interest in any local or overseas private property
- Have not disposed of any private property in the last 30 months before the flat application
Here are a few eligibility conditions applicants must meet:
- Have worked continuously for at least 12 months prior to the flat application
- Be working at the time you submitted the flat application
- Meet the housing ceiling of S$9,000 for first-timer households, and S$4,500 for first-timer and second-timer couple applicants
- The remaining lease of the flat must not be more than 20 years.
- Flat must have sufficient remaining lease to cover the youngest buyer and fiancé/ fiancée or spouse to the age of 95 to qualify for the full EHG amount. Otherwise, the EHG amount will be pro-rated
Once you have made sure that you are eligible for a CPF Housing Grant, the next step is to download and fill up the necessary EHG flat application form here.
Note: All working persons listed in the flat application must submit proof of their employment/income for the 1-year period prior to their application.
Getting grants from HDB would surely help couples and families to afford decent housing in Singapore. Given the high prices of homes and flats in the country, government grants and subsidies are always welcome if not necessary. Thankfully, the Enhanced CPF Housing Grant has made housing more affordable and accessible to ordinary Singaporeans.
- The EHG is a CPF housing grant available for first-time flat buyers who are either applying for a new Build-To-Order (BTO) flat or buying a resale flat
- To qualify for EHG, first-timer families must have an income ceiling of S$9,000.
- Eligible first-time applicants for new flats may receive an EHG of up to S$80,000 while eligible first-timer singles can receive up to S$40,000.
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