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 resourc