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First-time HDB buyers get Enhanced CPF Housing Grant; higher income ceiling for eligible buyers
THE Ministry of National Development (MND) and the Housing & Development Board (HDB) is enhancing housing grants for first-time buyers and raising the income ceiling for public housing.
As of Sept 11, a new grant, the Enhanced CPF Housing Grant (EHG) will replace the Additional CPF Housing Grant and the Special CPF Housing Grant (SHG).
The maximum grant under EHG will be S$80,000, while the income ceiling for the grant will be set at S$9,000. It will also apply to both new and resale flat purchases. Unlike the SHG, there are no restrictions on flat type and location.
Eligible first-timer families can receive up to S$80,000 under the EHG, provided they purchase a flat with a remaining lease that covers them and their spouse until at least the age of 95. Otherwise, the grant amount will be pro-rated based on the extent that the flat can cover them to age 95.
Eligible first-timer singles aged 35 and above who are earning not more than S$4,500 a month can get up to S$40,000 under the EHG. Families and singles who purchase resale flats to live near their parents can still receive the Proximity Housing Grant, on top of the EHG.
Meanwhile, amid rising incomes, the monthly household income ceiling will be raised from S$12,000 to S$14,000. This applies to eligible families buying a flat from the HDB, buying a resale flat on the open market with a CPF Housing Grant, or getting a HDB housing loan to buy a new or resale flat.
The monthly household income ceiling for eligible first-time single buyers will also be increased from S$6,000 to S$7,000, while the monthly household income ceiling for households to purchase an executive condominium from a property developer will go up from S$14,000 to S$16,000.
The changes were announced by Minister for National Development Lawrence Wong at the HDB Awards 2019 on Tuesday night.
To meet the anticipated additional demand for public housing arising from these changes, HDB will likely have to increase the build-to-order (BTO) supply in 2020, MND and HDB highlighted. This year, HBD is on track for a total of 15,000 units.