A Guide to the Enhanced CPF Housing Grant (EHG)

To make housing more affordable and accessible to Singaporeans, eligible first-time flat buyers can apply for an Enhanced Housing Grant (EHG) of up to $80,000.

What is EHG?

The EHG is a CPF housing grant for first-time flat buyers applying for a new Build-To-Order (BTO) flat or buying a resale flat in the open market. It helps to make housing more affordable and accessible to Singaporeans.

How much EHG am I eligible for?

Eligible first-timer applicants for new flats can enjoy an EHG of up to $80,000, while eligible first-timer singles can enjoy an EHG (Singles) of up to $40,000.

Similarly, eligible first-timer households buying a resale flat can also enjoy an EHG of up to $80,000, in addition to the CPF Housing Grant (up to $50,000) and Proximity Housing Grant (up to $30,000). This means that first-time resale homebuyers can enjoy up to $160,000 in housing grants!

How does EHG work?

To qualify for EHG, the monthly household income for first-timer families should not exceed $9,000 (refer to Table 1 below). Eligible first-timer singles must be aged 35 and above, with a monthly income of less than $4,500. In both cases, the buyer or his/ her spouse must be in continuous employment for the 12 months prior to the date of flat application and remain working at the point of flat application.

Table 1: EHG Structure

*The EHG is applicable for those buying 2-room Flexi flats on 99-year leases in the non-mature estates, 2-room Flexi flats on short leases, and resale flats (up to 5-room under the Single Singapore Citizen Scheme, and all flat types under the Joint Single Scheme).

^The EHG amount is applicable to households buying a flat with a remaining lease that can cover the buyers and their spouses to the age of 95; otherwise, the household will enjoy a pro-rated EHG.

New Flat Applicants

For first-timer households*, the EHG is applicable for all flats, regardless of flat type and location.

*First-timer single citizens buying a flat under the Single Singapore Citizen scheme or Joint Singles Scheme, are only eligible to buy 2-room Flexi flats.

For example, Couple A has an average monthly household income of $4,800 and is looking to buy a 4-room BTO flat in Tampines, a mature estate. With the EHG, Couple A can enjoy an additional $45,000 in housing grants:

Example 1

Resale Flat Buyers

Eligible first-timer households buying a resale flats can enjoy up to $160,000 in housing grants, which includes the EHG (up to $80,000), CPF Housing Grant (up to $50,000) and PHG (up to $30,000).

For example, Couple B who are both Singapore Citizens with an average monthly household income of $4,800, is buying a 4-room flat in a mature estate to live near their parents. They can enjoy a CPF Housing Grant of $50,000, an EHG of $45,000 and Proximity Housing Grant (PHG) of $20,000.

Table 2: CPF Housing Grant

Table 3: Proximity Housing Grant

What happens if the remaining lease of the flat I buy does not cover the youngest owner till the age of 95?

To enjoy the full EHG amount for the relevant income brackets, the purchased flat must have sufficient lease to cover the buyers and their spouses to the age of 95. Otherwise, the amount of grant will be pro-rated. This condition also applies to repurchased flats under the Sales of Balance Flats or Re-Offer of Flats exercises.

For example, Couple C, both aged 30, with an average monthly household income of $4,800, has purchased a resale flat with a remaining lease of 60 years. As the flat cannot cover them to the age of 95, they can enjoy an EHG of $40,000 as opposed to the full EHG amount of $45,000 for their income bracket.

In a Nutshell

Eligible first-timer applicants for new flats can enjoy up to $80,000 in housing grants while eligible first-timer singles can enjoy an EHG (Singles) of up to $40,000.

For eligible first-timer households buying a resale flat, they can enjoy up to $160,000 in housing grants, which includes the EHG (up to $80,000), CPF Housing Grant (up to $50,000) and PHG (up to $30,000).

Whether you are applying for a new BTO flat or buying a resale flat, remember to factor in the EHG when planning for your new home!

Read this guide to learn about other CPF housing grants available for home buyers.

Source: mynicehome.gov.sg