Nearly S$500m in Housing Grants Distributed to First-Time Home Buyers Since Sep 2019

If you were to pass a group of Singaporeans engaged in conversation, you’d likely hear them talking about at least one of these three things:

1. Where to go for lunch/dinner
2. CPF
3. Housing prices

Yes, it’s no secret that houses in Singapore are expensive. With such a tiny land to work with, space is at a premium.

Fortunately, the government is easing the financial burden a little.

Nearly S$500m in Housing Grants Distributed to First-Time Home Buyers Since Sep 2019

Almost $500 million has been given out in the form of housing grants to around 15,600 first-time homebuyers since Sep 2019, when the Enhanced CPF Housing Grant (EHG) was introduced.

The scheme entitles families buying their first home to S$80,000 in grants, as long as they don’t earn more than S$9,000 a month.

Meanwhile, first-time homebuyers who are single and earning not more than S$4,500 a month can receive up to S$40,000.

According to TODAY, the EHG replaces earlier housing grants, such as the Additional CPF Housing Grant and the Special CPF Housing Grant.

The advantages of the EHG is that it’s not restricted to a certain flat type or location, and is available to eligible buyers of both new and resale flats.

Who Qualifies For the Grant?

As previously mentioned, those living in households with an average monthly income of $9,000 or less will be eligible to receive the EHG, but they need to fulfil other criterias as well:

• At least one of the applicants must be a Singaporean citizen.
• All applicants and essential occupiers have to be first-timers
• At least one applicant must have worked continuously for 12 months before the flat application and must still be working at the time they submitted the flat application
• The flat they’re purchasing must have a sufficient lease to cover the youngest buyer and spouse/ fiancé(e) to the age of 95 to qualify for the full EHG. Otherwise, the EHG will be pro-rated.
• All applicants must not own any residential properties, both local or overseas, or have disposed of any such properties in the 30 months before the flat application. This includes private residential properties, houses, buildings, or land.

As of 31 Dec, 2020, 16,000 Have Applied For the Grant

Since its launch till 31 Dec last year, a total of 16,000 home buyers have applied for the EHG.

This includes 7,700 first-time new flat buyers, who were given around S$270 million in grants.

8,300 first-time resale flat buyers also applied over the same period, and 7,900 households have received the money so far, amount to S$226 million.

If these homeowners purchase flats to live with other family members or stay nearby, they are also eligible for a Proximity Housing Grant, in addition to the EHG. 

Featured Image: HDB