Introduction:
If you are a first-time homebuyer in Singapore, you may be eligible for an Enhanced Housing Grant (EHG) to help with your purchase. The EHG is a CPF housing grant that replaces the Additional CPF Housing Grant (AHG) and Special CPF Housing Grant (SHG) to provide higher grant amounts at a higher income ceiling. This means more Singaporeans can benefit when buying their first home.
Understanding Enhanced Housing Grants:
The EHG is a housing grant that helps make HDB flats more affordable to first-time flat buyers. Eligible first-time flat buyers can apply for an EHG of up to $80,000. The grant can be used for the purchase of a new Build-To-Order (BTO) flat or a resale flat in the open market. The EHG is only available to Singapore citizens, and the grant amount is dependent on the buyer’s income and the type of flat being purchased.
Key Takeaways:
- The Enhanced Housing Grant (EHG) is a CPF housing grant that replaces the Additional CPF Housing Grant (AHG) and Special CPF Housing Grant (SHG) to provide higher grant amounts at a higher income ceiling.
- Eligible first-time flat buyers can apply for an EHG of up to $80,000 for the purchase of a new Build-To-Order (BTO) flat or a resale flat in the open market.
- The EHG is only available to Singapore citizens, and the grant amount is dependent on the buyer’s income and the type of flat being purchased.
Understanding Enhanced Housing Grants
If you’re a first-time buyer or looking to upgrade your property, you may be eligible for an Enhanced Housing Grant (EHG) in Singapore. The EHG is a CPF housing grant that aims to make housing more affordable and accessible to Singaporeans. Here’s what you need to know about EHG.
Eligibility Conditions
To be eligible for the EHG, you must meet certain conditions. Firstly, you must be a Singapore citizen. Secondly, you must be a first-time buyer or a second-time buyer who is buying a resale flat with a partner who is a first-time buyer. Thirdly, your average gross monthly household income must not exceed $9,000. Finally, you must not own any property locally or overseas or have disposed of any within the 30 months before your application.
Types of Grants Available
There are three types of grants available under the EHG: Family Grant, Half-Housing Grant, and Proximity Housing Grant. The Family Grant is for first-time families who are buying a new or resale flat together. The Half-Housing Grant is for first-time singles who are buying a new or resale flat. The Proximity Housing Grant is for families or singles who are buying a resale flat near their parents or married child.
The amount of grant you can receive depends on your income and the type of grant you’re eligible for. For example, first-time families can receive up to $80,000 in EHG, while first-time singles can receive up to $40,000. Additionally, if you’re eligible for the Additional CPF Housing Grant (AHG) or Special CPF Housing Grant (SHG), you can receive up to $40,000 in EHG.
Overall, the EHG is a great way to make homeownership more affordable for Singaporeans. If you’re eligible, you should definitely consider applying for the grant.
Applying for EHG with BTO Flats
If you are a first-timer applicant looking to purchase a new flat in Singapore, you can apply for the Enhanced CPF Housing Grant (EHG) to help with your purchase. The EHG is available for both Build-To-Order (BTO) flats and resale flats, and can provide up to $80,000 in grant money for eligible applicants.
BTO Eligibility Criteria
To be eligible for the EHG when applying for a BTO flat, you must meet the following criteria:
- You must be a Singapore Citizen
- You must be a first-timer applicant
- Your household income must not exceed $9,000
- You must not own any other property in Singapore or overseas
- You must not have disposed of any other property in the 30 months before your BTO application
If you meet these criteria, you can apply for the EHG when you apply for your BTO flat.
BTO Application Process
The BTO application process is straightforward and can be done online through the HDB website. You will need to provide your personal details, income information, and preference for flat location and type.
Once your application has been submitted, you will be notified of the outcome of the balloting exercise. If you are successful in obtaining a BTO flat, you will be invited to sign the Agreement for Lease and pay the option fee.
At this point, you can apply for the EHG by submitting the necessary documents to the HDB. These documents include your income statements, proof of citizenship, and proof of first-timer status. If approved, the EHG will be disbursed to you at the point of key collection.
Overall, applying for the EHG with a BTO flat is an affordable way for first-time applicants to purchase a new home in Singapore. With the grant money provided, you can reduce the financial burden of buying a home and make the process more accessible.
EHG for Resale Flats
If you are a first-time resale flat buyer, you may be eligible for the Enhanced CPF Housing Grant (EHG), which can help to make your purchase more affordable. Let’s take a closer look at the eligibility criteria and application procedure for the EHG.
Resale Flat Eligibility
To be eligible for the EHG, you must meet the following criteria:
- You are a Singapore Citizen
- You are a first-time resale flat buyer
- Your average gross monthly household income for the 12 months prior to your flat application does not exceed $9,000
- You have not received any housing subsidy from HDB or taken any housing loan from HDB previously
In addition, your chosen resale flat must meet the following criteria:
- The remaining lease on the flat must be at least 20 years
- The flat type must be eligible for purchase under the CPF Housing Grant Scheme
- The flat must be located in a mature or non-mature estate
Resale Application Procedure
Once you have confirmed your eligibility for the EHG, you can proceed with the resale flat buying process. Firstly, you will need to obtain an HDB Flat Eligibility (HFE) Letter to confirm your eligibility to buy a resale flat.
Next, you can start searching for a resale flat that meets your needs and budget. You can either engage a property agent or search for a flat on your own through the open market.
Once you have found a suitable flat, you can submit an application to HDB and pay the option fee. If your application is successful, you will need to pay the resale price and exercise the option to purchase the flat.
During the resale procedures, you can also apply for the Proximity Housing Grant (PHG) if you are buying a resale flat near your parents or married child. The PHG can provide an additional $30,000 grant to eligible buyers.
Overall, the EHG can provide significant financial assistance to first-time resale flat buyers. By following the eligibility criteria and application procedure, you can increase your chances of receiving the grant and making your dream of owning a resale flat a reality.
Financial Planning for Home Buyers
If you’re planning to buy a home in Singapore, financial planning is essential. Here are a few things to keep in mind as you prepare to make a purchase.
Average Income Assessment
The first step in financial planning is to assess your monthly household income. This will help you determine how much you can afford to spend on a home. The average gross monthly household income for resident employed households in Singapore is $10,712, according to the Department of Statistics Singapore. However, keep in mind that this is just an average, and your income may be higher or lower.
CPF Usage and Housing Loans
Once you’ve assessed your income, you’ll need to consider how you’ll finance your home purchase. One option is to use your CPF Ordinary Account savings to pay for the down payment and monthly instalments on your HDB housing loan. This can be an affordable way to finance your home purchase, as the interest rate on your CPF Ordinary Account is currently 2.5% per annum.
However, keep in mind that there are limits to how much you can use from your CPF Ordinary Account. The monthly household income ceiling for CPF usage is $14,000, and you’ll need to have sufficient funds in your CPF Ordinary Account to cover the down payment and monthly instalments on your HDB housing loan.
Another option is to take out a housing loan from a bank or financial institution. Before you do this, it’s a good idea to get an in-principle approval for a loan amount. This will give you an idea of how much you can borrow and what your monthly instalments will be. Be sure to shop around and compare loan packages from different banks and financial institutions to find the best deal.
Remember, financial planning is an important part of the home buying process. By assessing your income and considering your financing options, you can make an informed decision that is affordable and accessible for you and your family.
Additional Considerations for Eligibility
Family Nucleus and SPR Status
When applying for the Enhanced Housing Grant (EHG), you must meet the eligibility criteria for family nucleus and Singapore Permanent Resident (SPR) status. The family nucleus is defined as a core family unit comprising the applicant(s) and occupier(s) who will be living with you in the flat. For example, if you are applying for the EHG as a married couple, you and your spouse would be the core family nucleus.
If you are a Singapore Citizen (SC), you can form a family nucleus with your spouse, parents, children, and siblings. However, if you are applying as a single, you can only form a family nucleus with your parents or children. On the other hand, if you are an SPR, you can only form a family nucleus with your spouse and children.
Property Ownership Criteria
When applying for the EHG, you must also meet the property ownership criteria. For example, if you are a first-timer applicant, you can apply for the EHG when you purchase a new or resale flat in non-mature estates. If you are purchasing a resale flat, the remaining lease of the flat must be at least 95 years.
If you are applying for the EHG as a multi-generation family, you can purchase a new or resale flat in any location, but you must apply for the Family Grant instead of the EHG. Additionally, if you are applying for the EHG under the Joint Singles Scheme, you can only purchase a new flat.
Moreover, you cannot apply for the EHG if you or any of your family nucleus members own a private residential property or a non-residential property in Singapore or overseas.
In conclusion, when applying for the EHG, you must meet the eligibility criteria for family nucleus and SPR status, as well as the property ownership criteria. By meeting these criteria, you can enjoy up to $80,000 in housing grants to make your dream of owning a home in Singapore a reality.
Frequently Asked Questions
How can one qualify for the Enhanced Housing Grant?
To qualify for the Enhanced Housing Grant, you must be a first-time applicant and meet the eligibility criteria set by the Housing and Development Board (HDB). The Enhanced Housing Grant is available to first-timer families and couples who are buying a new or resale flat.
What are the steps to apply for the Enhanced Housing Grant?
To apply for the Enhanced Housing Grant, you must submit your application through the HDB portal. You will need to provide your personal details, income information, and other necessary documents. Once your application is approved, the grant amount will be disbursed to you through your CPF Ordinary Account.
How much financial support can you receive from the Enhanced CPF Housing Grant?
First-timer families may qualify for an Enhanced CPF Housing Grant of up to $80,000, while a couple comprising a first-timer and second-timer may qualify for an Enhanced CPF Housing Grant (Singles) of up to $40,000. The grant amount is based on your average monthly household income.
What distinguishes the Enhanced Housing Grant from the regular CPF Housing Grant?
The Enhanced Housing Grant is an improvement over the regular CPF Housing Grant as it provides higher financial support to first-time flat buyers. Additionally, the Enhanced Housing Grant is available to first-timer families and couples who are buying a new or resale flat, while the regular CPF Housing Grant is only available to first-timer families who are buying a new flat.
Are there specific income criteria to meet for the Enhanced Housing Grant eligibility?
Yes, there are specific income criteria that you must meet to be eligible for the Enhanced Housing Grant. The grant amount is based on your average monthly household income, and the eligibility criteria vary depending on whether you are a first-timer family or a couple comprising a first-timer and second-timer.
Can proximity to family members affect your Enhanced Housing Grant entitlement?
No, proximity to family members does not affect your Enhanced Housing Grant entitlement. The grant amount is based solely on your average monthly household income and other eligibility criteria set by the HDB.