If you’re a Singaporean family looking to purchase a resale flat, you may be eligible for the Family Grant provided by HDB Singapore. The grant is designed to help families offset the high costs of purchasing a home and reduce the amount of housing loan required for the purchase. In this article, we’ll take a closer look at the Family Grant and explore the application process, financial planning, and additional considerations for applicants.
The Family Grant is available to Singaporean citizen (SC) and Singapore permanent resident (SPR) families who are purchasing a resale flat. The grant is awarded to all eligible members of the core family nucleus and can be used to offset the purchase price of the flat or reduce the housing loan required for the purchase. The amount of the grant varies depending on the family’s income and the type of flat being purchased.
To apply for the Family Grant, you must first ensure that you meet the eligibility criteria. You must also prepare the necessary documents and submit them to HDB. In addition, it’s important to consider your financial situation and plan accordingly, taking into account the CPF Housing Grants and other financial assistance schemes that you may be eligible for.
Key Takeaways
- The Family Grant is available to eligible Singaporean citizen and permanent resident families purchasing a resale flat.
- To apply for the grant, you must meet the eligibility criteria and prepare the necessary documents for submission to HDB.
- Financial planning is essential to maximise the benefits of the Family Grant and other financial assistance schemes.
Understanding HDB Family Grants
If you are a Singapore citizen looking to purchase an HDB flat, you may be eligible for a Family Grant. This grant is designed to help families with their home purchase by providing financial assistance. In this section, we will discuss the eligibility conditions, grant amounts, and types of grants available.
Eligibility Conditions
To be eligible for a Family Grant, you must meet the following conditions:
- You must be a Singapore citizen.
- You must be at least 21 years of age.
- You must be applying with your spouse and/or children, or your parents and/or siblings.
- Your average monthly household income must not exceed $14,000.
- You must not own any other property.
- You must not have received any other housing subsidy from the government.
Grant Amounts
The amount of the Family Grant you are eligible for depends on a few factors. If you are buying a new flat directly from HDB, you may be eligible for a grant of up to $50,000. If you are buying a resale flat, the grant amount will depend on the remaining lease of the flat. For flats with a remaining lease of at least 20 years, you may be eligible for a grant of up to $40,000. For flats with a remaining lease of less than 20 years, the grant amount will be pro-rated accordingly.
Types of Grants
There are a few types of grants available to families purchasing an HDB flat:
- Family Grant: This grant is available to families purchasing a new or resale flat. The amount of the grant depends on the type of flat and the remaining lease.
- Enhanced CPF Housing Grant: This grant is available to families purchasing a new or resale flat. The amount of the grant depends on your household income and the type of flat.
- Proximity Housing Grant: This grant is available to families who are purchasing a resale flat near their parents or children. The amount of the grant is $20,000.
- Singles Grant: This grant is available to singles purchasing a resale flat. The amount of the grant depends on the type of flat and the remaining lease.
Overall, the Family Grant is a great way for families to get financial assistance when purchasing an HDB flat. If you meet the eligibility conditions, you should definitely consider applying for this grant.
Application Process for Family Grants
If you are a first-timer applicant looking to purchase a resale flat, you may be eligible for the Family Grant provided by the Housing & Development Board (HDB) in Singapore. This grant offers a sum of $40,000 to families who meet the eligibility criteria.
HDB Flat Eligibility
To be eligible for the Family Grant, you must meet the eligibility criteria for purchasing an HDB flat. This includes being a Singapore Citizen or Permanent Resident, and having a total average income of $14,000 or less per month for families.
Required Documents
Before applying for the Family Grant, you will need to obtain an In-Principle Approval (IPA) from HDB. You will also need to provide the following documents:
- A copy of your NRIC or passport
- Income documents for the past 12 months
- A copy of your marriage certificate (if applicable)
- A copy of your birth certificate (if applicable)
- A copy of your child’s birth certificate (if applicable)
Application Procedure
Once you have obtained the necessary documents, you can apply for the Family Grant through the HDB website or at any HDB Branch. You will need to submit your application along with the required documents.
If you are purchasing a new flat, you will need to follow the buying procedure for new flats. If you are purchasing a resale flat, you will need to follow the buying procedure for resale flats. In both cases, you will need to ensure that the flat is eligible for purchase and that the remaining lease of the flat meets the minimum requirement.
Overall, the application process for the Family Grant is straightforward and can provide a significant financial boost for families looking to purchase a resale flat in Singapore.
Financial Planning and CPF Usage
When it comes to purchasing an HDB flat with a family grant in Singapore, it’s important to plan your finances and budget accordingly. One of the most important aspects of this planning is understanding how to use your CPF (Central Provident Fund) Ordinary Account.
CPF Ordinary Account
Your CPF Ordinary Account (OA) is a savings account that you can use to purchase your HDB flat. You can use up to $20,000 from your OA to pay for the downpayment and up to 100% of the purchase price of the flat. However, it’s important to note that using your CPF OA means that you will have less money for retirement.
Accrued Interest
Another important factor to consider when using your CPF OA is the accrued interest. The interest rate for your CPF OA is currently 2.5% per annum. This means that if you withdraw money from your OA to pay for your HDB flat, you will need to pay back the principal amount plus the accrued interest.
ABCS of Financial Planning
To ensure that you are making the most of your CPF OA and other financial resources, it’s important to follow the ABCS of financial planning. These are:
- Assess your financial situation
- Build a realistic budget
- Choose the right financial products
- Start investing early
Assessing your financial situation means understanding your gross monthly household income, citizenship, and ownership status. Building a realistic budget involves considering your CPF OA, continuous employment, and other sources of income. Choosing the right financial products means finding the best interest rates and terms for your needs. Finally, starting investing early means making the most of your money for the long term.
By following these steps and using your CPF OA wisely, you can make the most of your family grant and purchase the HDB flat that’s right for you and your family.
Additional Considerations for Applicants
When applying for the Family Grant for HDB in Singapore, there are some additional considerations that you need to take into account. Here are some of the most important ones:
Family Nucleus Composition
The Family Grant is only available for families that meet the eligibility criteria for the core family nucleus. This includes you, your spouse, and your children. If you are unmarried, you can also apply for the grant if you are applying with your parents and/or siblings. However, if you are a Singapore Permanent Resident or a non-citizen, you will not be eligible for the grant.
Property Ownership History
If you or any of your family members have previously owned any private residential property or non-residential property, you will not be eligible for the Family Grant. Additionally, if you or any of your family members have previously bought an Executive Condominium (EC) unit, you will not be eligible for the grant until five years have passed since the date of disposal of the EC unit.
It is also important to note that if you or any of your family members have previously received any housing subsidies from the government, you may not be eligible for the full amount of the Family Grant.
First-Time Applicant
If you are a first-time applicant for an HDB flat, you may be eligible for additional grants, such as the Enhanced CPF Housing Grant. This grant is available for first-timer families with an average monthly income of up to $9,000. You can receive up to $80,000 in grants, including the Family Grant, if you meet the eligibility criteria.
Cooling Measures
It is important to note that there are cooling measures in place that may affect your eligibility for the Family Grant. For example, if you are applying for a second property, you will be subject to additional stamp duties. Additionally, if you are applying for a property with a loan-to-value ratio of more than 75%, you will be subject to additional restrictions.
Overall, applying for the Family Grant for HDB in Singapore can be a great way to get financial assistance when buying your first home. By understanding the eligibility criteria and additional considerations, you can increase your chances of success when applying for the grant.
Maximising Grant Benefits
If you are a first-timer applicant, you can maximise your grant benefits when purchasing a flat in Singapore. Here are some tips to help you get the most out of your HDB grants.
Top-Up Grant
If you are a middle-income family looking to purchase a five-room flat in a non-mature estate, you may be eligible for the Top-Up Grant. This grant provides an additional $20,000 to the Family Grant for the purchase of a new flat. This means that you can receive up to $80,000 in grants to help you purchase your dream home.
Special Schemes for Different Demographics
There are also special schemes available for different demographics. For example, if you are a first-timer applicant who is 35 years old or above, you may be eligible for the Enhanced CPF Housing Grant (EHG). This grant provides up to $80,000 in housing subsidies to help you purchase your first home.
If you are a first-timer applicant who is looking to purchase a resale flat, you may be eligible for the Proximity Housing Grant (PHG). This grant provides up to $30,000 in subsidies to help you purchase a flat near your parents or married child.
Additionally, if you are a middle-income family looking to purchase a new flat in a non-mature estate, you may be eligible for the Special CPF Housing Grant (SHG). This grant provides up to $40,000 in subsidies to help you purchase your new home.
By taking advantage of these special schemes and grants, you can maximise your benefits and purchase your dream home in Singapore.
Frequently Asked Questions
Who is eligible to apply for the Family Grant when purchasing an HDB flat?
If you are a Singapore Citizen or Permanent Resident and you are buying a resale flat with your spouse or family members, you may be eligible to apply for the Family Grant. The grant is also available if you are buying a resale flat to live with or near your parents or child.
How can I calculate the potential amount I might receive from the Family Grant?
The amount of the Family Grant you may receive depends on the type of flat you are purchasing and your household income. You can use the HDB website’s eligibility and grants calculator to get an estimate of the grant amount you may receive.
Where can I find the application form for the Family Grant?
You can download the application form for the Family Grant from the HDB website. The form includes instructions on how to fill it out and where to submit it.
What are the steps involved in applying for the Family Grant for an HDB flat?
First, you need to check your eligibility for the grant and calculate the potential amount you may receive. Then, you need to submit the application form along with the required documents to HDB. HDB will process your application and notify you of the outcome.
What is the maximum amount one can receive from the Family Grant?
If you are purchasing a 2- to 4-room resale flat, you may receive up to $80,000 from the Family Grant. If you are purchasing a 5-room or larger resale flat, you may receive up to $50,000 from the grant. Your household income must not exceed $14,000 to qualify for the grant.
Are there additional grants available for purchasing an HDB flat near my parents?
Yes, if you are buying a resale flat to live with or near your parents or child, you may apply for the Proximity Housing Grant (PHG). The PHG provides up to $30,000 to eligible families who buy a resale flat to live with or near their parents or child.