Your Handy Guide to HDB Grants

In this article, we’ll explore everything you need to know about HDB grants: what they are, how to determine your eligibility, the options available for resale flat purchases and new flats, and how to apply for them.

What Are HDB Grants?

HDB grants are subsidies the government provides to reduce the financial burden of purchasing an HDB flat. These grants apply to Build-to-Order (BTO) flats and HDB resale flats. The grant amount depends on the applicant’s average gross monthly household income, eligibility conditions, and the purchased property type.

Over time, housing grants have been revised, and new initiatives have been introduced to cater to changing demographics.

Find Out About Your Eligibility

Before applying for HDB grants, it’s essential to understand the eligibility criteria that determine the schemes you qualify for. Different grants cater to various groups, ensuring everyone—from first-timer households to seniors—can access affordable housing options.

First-Timers

You may be eligible for multiple grants if you’re a first-time applicant. These include:

• Enhanced CPF Housing Grant (EHG): Based on your average monthly household income

• Family Grant: Designed for couples or families purchasing a resale flat

Eligibility criteria for first-time households:

• At least one applicant must be a Singaporean citizen.

• Gross monthly household income must not exceed $14,000 (or $21,000 for multi-generational families).

• The flat’s remaining lease must cover the youngest buyer for at least 95 years.

Additionally, first-timers can ease their financial commitments through renovation loans in Singapore, which help cover costs for transforming their newly purchased HDB flat into a comfortable home.

Singles

When purchasing a resale flat, singles aged 35 and above can access grants like the Singles Grant and the Proximity Housing Grant (PHG).

Eligibility criteria for singles:

• Singles must be 35 and above to be eligible for most HDB grants.

• Gross monthly income must not exceed $7,000.

• Applicants must not own any private property.

Couples and Families

Couples can combine multiple grants, such as the EHG, Family Grant, and PHG, to maximise their benefits.

Additional eligibility criteria:

• Legal marriage registration is required within three months of the flat application.

• Immediate family members must be included under the flat’s core family nucleus.

Seniors

Seniors downsizing or purchasing HDB resale flats can access grants like the Silver Housing Bonus and the Lease Buyback Scheme. These grants are tailored for retirees living alone or with non-resident spouses.

HDB Grants for Resale Properties

Purchasing an HDB resale flat can be a practical option for buyers looking for a ready-to-move-in home. Various housing grants are available to help offset the cost of resale flat purchases, depending on the flat’s location within Singapore’s different regions.

Rest of Central Region (RCR)

The Rest of Central Region (RCR) includes areas just outside Singapore’s prime districts, offering a balance between accessibility to the city centre and relatively affordable pricing.

Eligible buyers purchasing resale flats in the RCR may qualify for grants such as:

• Enhanced CPF Housing Grant (EHG): Subject to monthly household income not exceeding $14,000 (or $21,000 for multi-generational families)

• Proximity Housing Grant (PHG): Those choosing to live near their parents or children

The RCR provides a good mix of convenience and affordability for families and working professionals.

Outside Central Region (OCR)

The Outside Central Region (OCR) includes Singapore’s heartlands, offering affordable housing options ideal for first-time families and other buyers. Flats in the OCR are generally more spacious and cater to households with lower income levels.

Available grants include:

• Family Grant: This grant is designed for couples or families purchasing a resale flat. Grant amounts depend on citizenship and family composition.

• Enhanced CPF Housing Grant (EHG): Based on household income and flat location.

• Proximity Housing Grant (PHG): To encourage families to stay close to relatives, strengthening familial support networks.

OCR flats are especially appealing to those prioritising affordability and family-oriented living.

Core Central Region (CCR)

The Core Central Region (CCR) encompasses Singapore’s prime districts, including Orchard, Marina Bay, and other central areas known for higher property prices and limited HDB supply.

While resale flats in the CCR are less common and more expensive, buyers may still access HDB grants to ease financial constraints. However, grant eligibility depends on stricter criteria:

• Enhanced CPF Housing Grant (EHG): Applicants must meet the household income ceiling.

• Proximity Housing Grant (PHG): If applicable, this grant can help offset costs when purchasing near family.

The CCR is best suited for buyers prioritising proximity to city-centre amenities despite its premium pricing.

HDB Grants for BTO, Open Booking, and SBF Flats

Buying a new HDB flat through the Build-to-Order (BTO), Open Booking, or Sale of Balance Flats (SBF) schemes is popular for Singaporeans. The Housing and Development Board (HDB) provides various grants tailored to different needs and circumstances to make these homes more affordable.

Enhanced Housing Grant (EHG)

The Enhanced CPF Housing Grant (EHG) assists Singaporeans across varying income levels. It is available to all first-time applicants, whether purchasing a BTO, SBF, or resale flat.

Key criteria for the EHG:

• A family’s gross monthly household income must not exceed $9,000, while the income ceiling for singles is $4,500.

• The grant applies to various flat types and locations, giving applicants more flexibility in choosing their homes.

• If you purchase a flat near your immediate family, the EHG can be combined with other grants, such as the Proximity Housing Grant (PHG).

Grant Details:

• The grant amount is calculated based on the average gross monthly household income, with lower-income families receiving larger amounts.

• To qualify, at least one applicant must have been employed continuously for 12 months before the application date, ensuring the grant supports those with stable income sources.

The EHG enhances affordability while providing options to cater to different family setups and financial circumstances.

Step-Up CPF Housing Grant

The Step-Up CPF Housing Grant helps families upgrade from smaller flats to larger homes, particularly for those moving from a 2-room flat in a non-mature estate to a 3-room one in another under the BTO or SBF scheme.

Key criteria for the Step-Up Grant:

• Applicants must meet the gross monthly income ceiling of $7,000 for families or $3,500 for singles.

• The grant provides up to $15,000, easing the financial burden of upgrading to a larger home.

Additional Notes:

• This grant is specifically designed to help families progress up the housing ladder, allowing them to transition gradually as their needs evolve.

HDB Grants: Resale Flats for Singles

Singles in Singapore who wish to purchase a resale flat can benefit from specific housing grants designed to make homeownership more affordable. These grants cater to individuals buying independently, ensuring financial support is accessible even without a partner or family nucleus.

However, buyers should also be aware of the HDB resale levy, which applies when purchasing a second subsidised flat after selling their first.

Enhanced CPF Housing Grant

The Enhanced CPF Housing Grant (EHG) provides financial assistance to singles based on their gross monthly household income and the remaining lease of the resale flat. This grant aims to support individuals with lower household incomes, helping them enter the property market independently.

Key criteria for the EHG:

• Applicants must be Singapore citizens aged 35 or older.

• The monthly household income ceiling is $4,500.

• The resale flat must have at least 20 years of remaining lease, with full grants available for flats with at least 40 years of lease remaining.

• Singles can receive up to $60,000, depending on their monthly income.

Additional details:

• The grant amount is credited to your CPF Ordinary Account and used to offset the cost of the resale of the HDB flat.

• The EHG ensures affordability for singles, enabling them to secure housing that aligns with their financial capabilities.

Proximity Housing Grant

The Proximity Housing Grant (PHG) is designed for singles who prefer to live closer to their parents or immediate family members. This grant fosters stronger family support systems and reduces commuting times.

Key criteria for the PHG:

• Applicants must be Singapore citizens aged 35 or older.

• The resale flat must be located within 4km of the applicant’s parents or immediate family.

• Eligible singles can receive up to $15,000 under this grant.

Additional benefits:

• Encourages closer family living arrangements, strengthening family bonds

• Enhances financial savings for singles purchasing a resale flat

Couples and Families Grants

Singapore’s HDB grants are structured to support couples and families in their homeownership journey. Several housing grants are available, allowing families to enjoy financial aid tailored to their specific needs.

What Is the Core Family Nucleus?

The core family nucleus is a fundamental concept in Singapore’s public housing framework. It represents the basic family unit required to qualify for most HDB housing grants, including the Family Grant and the Enhanced CPF Housing Grant (EHG).

A core family nucleus typically includes:

• A married couple (including those who have completed their marriage registration)

• Parents and at least one child

• Siblings, if applying under the Orphan Scheme

For couples involving a non-resident spouse, the Non-Citizen Spouse Scheme allows eligibility for certain grants, but the grant amount may be adjusted. A valid family structure is essential when applying for HDB housing loans or grants.

Couples are encouraged to plan for long-term financial commitments, such as paying off HDB loans and ensuring manageable monthly repayments while maximising their grant benefits.

Top-Up Grant

The Top-Up Grant is for buyers who have previously received housing subsidies but require additional financial support for their next HDB flat purchase. It benefits families upgrading their homes or switching to a resale HDB flat.

Key eligibility criteria:

• Applicants must have previously received a housing subsidy.

• The flat type or location change must meet specific eligibility conditions.

• Applicants must have fulfilled their current flat’s Minimum Occupation Period (MOP).

Grant amount:

• The grant amount depends on the difference between the previously received subsidy and the current eligibility for financial aid.

Citizen Top-Up Grant

The Citizen Top-Up Grant provides additional financial support to families with at least one Singapore Permanent Resident (SPR) family member (e.g., spouse or child) who subsequently becomes a Singapore citizen. This ensures families benefit from the higher subsidies allocated to Singapore citizens.

Key eligibility criteria:

• Families must include at least one Singapore citizen in the application.

• The grant amount is $10,000, applicable to both new and resale flats.

• Applicants must meet income assessment and remaining lease requirements.

Proximity Housing Grant

The Proximity Housing Grant (PHG) encourages families to live closer to their immediate family members, fostering stronger bonds and offering practical support such as childcare or eldercare.

Grant details:

• Up to $30,000 for families living with their parents or children

• $20,000 for families living within 4km of their parents or children

• Applicants must purchase a resale HDB flat and meet the gross monthly household income threshold

• The PHG is stackable with other housing grants, allowing couples to maximise their financial assistance

Other Bonuses for Couples

In addition to various HDB grants, Singapore couples can access schemes designed to ease the financial and logistical challenges of securing a home. These initiatives offer flexibility and targeted support, particularly for young families and newlyweds.

Parenthood Provisional Housing

The Parenthood Provisional Housing Scheme (PPHS) provides temporary housing at affordable rental rates for married couples and families waiting for their new flats (e.g., BTO or SBF flats) to be completed.

Key features of PPHS:

• Affordable rental rates compared to open-market rentals

• HDB flats are available in different locations to cater to various needs

• Open to couples who have completed their marriage registration and are:

  • Expecting children

  • Already parents

PPHS ensures families have a temporary yet stable living environment while awaiting their permanent home.

Staggered Downpayment

The Staggered Downpayment Scheme (SDS) is designed to make the initial financial commitment for a BTO or new flat more manageable. This scheme is particularly beneficial for young couples who may not have the financial means to pay the full downpayment upfront.

How SDS works:

• Pay the first 5% of the flat’s purchase price upon signing the Agreement for Lease.

• Pay the remaining 5% closer to the key collection stage.

Benefits:

• Provides financial flexibility by aligning payments with the flat’s construction timeline

• Eases financial commitments during the initial stages, making homeownership accessible for couples with tighter monthly incomes

Deferred Income Assessment

The Deferred Income Assessment scheme helps young couples in the early stages of their careers who may not yet meet the income ceiling for certain housing grants. This flexibility allows couples to apply for HDB flats without immediate proof of income, deferring the assessment to a later stage.

How it benefits couples:

• Gives couples time to establish their average monthly income while securing a flat early

• Supports those anticipating future income growth, ensuring they can apply for a BTO flat even if they fall short of grant eligibility criteria

Eligibility criteria:

• At least one applicant must be aged 30 or below at the time of the flat application.

• The deferred assessment timeline must align with the anticipated key collection date.

HDB Grants for Seniors

As seniors transition into different stages of life, their housing needs often change. To support these evolving requirements, the Housing and Development Board (HDB) offers various grants and schemes tailored for seniors. These initiatives provide financial aid, promote independent living, and encourage proximity to loved ones.

Available Flat Types

Seniors can choose from various housing options to suit their needs and preferences, such as:

• 2-room Flexi flats: These flats are designed with senior-friendly features and offer shorter lease options, providing flexibility and affordability for older residents.

• Resale flats: These flats offer diverse locations and configurations, enabling seniors to move closer to family members while maintaining comfort and convenience.

• Studio apartments: Affordable and compact, these flats cater to seniors prioritising simplicity and ease of maintenance.

These housing options are thoughtfully designed to ensure accessibility, safety, and comfort for elderly residents.

Enhanced CPF Housing Grants (EHG)

The Enhanced CPF Housing Grant (EHG) is available to seniors purchasing resale or new flats. It provides financial assistance to make homeownership or relocation more affordable.

Key details:

• The grant amount depends on the applicant’s average gross monthly household income.

• Seniors who live alone and meet income ceiling criteria are also eligible.

The EHG reduces the financial burden of securing a new home, enabling seniors to enjoy an independent and affordable lifestyle.

Lease Buyback Scheme (LBS)

The Lease Buyback Scheme (LBS) allows seniors to monetise their existing HDB flats by selling part of their remaining lease back to HDB. This scheme provides a steady income stream, enabling seniors to continue living in their homes.

Eligibility criteria:

• Seniors aged 65 and above

• The property must have at least a 20-year remaining lease

• Proceeds are credited to the CPF Retirement Account, providing a lifelong payout

This scheme offers financial security without requiring seniors to uproot their living situation.

Silver Housing Bonus (SHB)

The Silver Housing Bonus (SHB) encourages seniors to downsize to smaller flats, unlocking equity from their current property while boosting their retirement savings.

Key benefits:

• Seniors can receive up to $30,000 as a cash bonus.

• A portion of the proceeds must be used to top up their CPF Retirement or Ordinary Account.

This scheme is ideal for seniors who wish to optimise their financial resources while simplifying their living arrangements.

Enhancement for Active Seniors (EASE)

The Enhancement for Active Seniors (EASE) programme subsidises modifications to improve the accessibility and safety of seniors’ homes.

Available enhancements:

• Installation of grab bars in bathrooms

• Slip-resistant flooring in key areas

• Ramps for easier mobility within the flat

These modifications empower seniors to live independently and confidently in their homes.

Proximity Housing Grant (PHG)

The Proximity Housing Grant (PHG) supports seniors who want to live near their children or immediate family members, fostering intergenerational connections and support.

Grant details:

• Up to $30,000 for seniors purchasing a resale flat near their family

• No income ceiling, making it accessible to a wide range of applicants

The PHG helps seniors maintain close ties with loved ones while easing the financial burden of relocation.

How To Apply for HDB Grants

Applying for HDB grants involves a straightforward process to determine eligibility and submit the necessary documents. Follow these steps:

1. Determine your eligibility

   • Start with an HFE (HDB Flat Eligibility) letter application, which assesses your eligibility for HDB flats, loans, and grants.

2. Submit your application

   • File your HDB grant application alongside your flat application on the HDB portal.

3. Provide required documents

   • Upload necessary documents, such as income assessment reports, proof of citizenship, and other supporting documents specified by HDB.

How Much Is an HDB Grant?

The total grant amount depends on your household income, the flat type, and the grant schemes you’re eligible for. Here are the general figures:

• Enhanced CPF Housing Grant (EHG): Up to $120,000 for eligible applicants, based on gross monthly household income and remaining lease of the flat.

• Proximity Housing Grant (PHG): Up to $30,000 for living near or with immediate family members.

• Family Grant: Up to $80,000 is available for couples purchasing a resale flat, depending on the applicants’ flat size and citizenship status.

How Do You Receive the Loan Amount?

The grant amount is credited directly to your CPF Ordinary Account and applied toward the flat’s costs. Here’s how it works:

1. For flat purchase: The grant reduces the purchase price of a resale flat, lowering the loan amount required.

2. For payments: It can be used for key collection, staggered downpayment schemes, or monthly HDB housing loan repayments.

3. Unused funds: Any balance after applying the grant to your flat cost remains in your CPF Ordinary Account and can be used for future housing or retirement needs.

What if You Sell Your House?

Selling HDB flat involves certain obligations regarding the grants you’ve received. Upon selling, you are required to:

Return the Grant Amount to Your CPF

When you sell your flat, the total grant amount you received and its accrued interest must be refunded to your CPF Ordinary Account (OA).

• This refund ensures the funds can be reused for future housing or contribute to retirement savings.

• The accrued interest is calculated as though the grant amount had remained in your CPF account.

Meet the Minimum Occupation Period (MOP)

Before selling your flat, you must fulfil the Minimum Occupation Period (MOP), typically five years.

• Selling your flat before meeting the MOP is prohibited except under specific circumstances approved by HDB (e.g., medical reasons or divorce).

• Failing to meet the MOP disqualifies you from buying another subsidised flat or applying for new grants.

Reassess Grant Eligibility for Future Purchases

If you plan to buy another HDB flat or resale flat with grants, any previous housing subsidies will be factored into your eligibility:

• The grant amount you previously received will affect your entitlement to new grants.

• For example, if you sell your current flat and buy another with a new grant, the HDB resale levy may apply. This levy ensures fairness in distributing housing subsidies.

Conclusion

Navigating the world of HDB grants can feel overwhelming at first, but having a clear understanding of your options can make the process much smoother. Whether you’re a first-time applicant, a senior looking for more flexible arrangements, or planning to purchase a resale HDB flat, there’s likely a housing grant designed to support your journey.

For more in-depth guides and tips on making the most of your housing journey, visit OMY today. From HDB flat applications to strategies for securing the best housing grants, you’ll find everything you need to turn your homeownership goals into reality.