A Beginner’s Guide To The HDB Proximity Housing Grant

Singaporeans are bonded together by values and traits that are first practised at home. Considering this, it doesn’t come as a surprise that many Singaporeans have close family ties. Living with or near your family is a priority for many people, especially as parents get older. Thankfully, the HDB Proximity Housing Grant makes buying a resale home more affordable.

The Proximity Housing Grant is something individuals can qualify for even if they are not first-time home buyers, or they have taken advantage of other housing grants in the past.

If you want to know more about the HDB Proximity Grant, you’re on the right page. In this guide, we’ll take a look at its eligibility conditions, and how much you can save from it.

Here at OMY Singapore, you will discover the following:

What Is The Proximity Housing Grant?

Proximity Housing Grant

Also called PHG, the Proximity Housing Grant was first introduced in 2015 to enable Singaporean HDB resale flat buyers who want to live with or closer to their children and parents to get more savings.

More From OMY: A Beginner’s Guide To The HDB Resale Levy

Living with or near your loved ones poses tons of benefits. For instance, you can easily watch over your ageing parents, or your parents can help watch your kids while you’re at work or have errands to fulfil. Most of all, it helps families spend more quality time together.

Who Is Eligible For The Proximity Housing Grant?

Take a look at the table below if you want to find out if you are eligible for Proximity Grant HDB.

Eligibility for HDB Proximity Grant Details
Citizenship Must be a Singaporean citizen for those applying as a single applicant, other applicant must be Singapore citizen or PR
Property type Resale HDB flat

(Note: BTO buyers are not eligible so there is to BTO near parents grant)

Applicant’s age At least 35 for those applying as singles, at least 21 for those applying as family
Family Fiance/fiancée, spouse, children under legal custody, singles under single schemes
Income ceiling none
Type of flat 2-room – 5-room
Number of applications Once
Remaining lease of flat 20 years or more

Check out this table by HDB for more information on the eligibility of this PHG Grant.

Based on the table above, the Proximity Housing Grant is only available for single Singaporeans or married families and couples who want to get a resale flat near or with their children or parents by buying an HDB resale flat. There is no BTO Proximity Grant, although you can use other grants if you want to get a BTO flat.

Want to compare BTO and resale flats? This guide can help you.

But what does “near” mean? According to HDB, it means within 4-km. radius to the flat of your parents or children. Considering this, it doesn’t necessarily mean that you have to get a house in the same township or area as your family. As long as you check the 4km radius HDB resale requirement, you’re good to go.

It’s also worth noting that your family doesn’t have to live in an HDB flat for you to qualify for the proximity housing grant.

How Much Can You Save With The Proximity Housing Grant?

Family nucleus Living with parents and children Living near parents and children within 4km.
Family S$30,000 S$20,000
Singles S$15,000 S$10,000

Under the HDB Proximity Housing Grant, families (married and engaged couples) homebuyers can receive up to S$30,000 if they choose to live with their children or parents. Meanwhile, those who want to live close to their families can receive S$20,000.

Singles can receive a Proximity Housing Grant of S$15,000 if they live in the same home as their children and parents. This group can receive S$10,000 if they buy an HDB resale flat near their family.

Other Things You Need To Know About The HDB Proximity Housing Grant

When it comes to the HDB Proximity Grant, the most obvious benefit you can get from it is monetary savings. Singaporeans know that buying resale flats are more expensive compared to BTO flats, but thanks to the HDB PHG, it can become more affordable.

Because of the amount you’ll be able to save with this HDB parent grant, it means that you can fork out more funds if you want to get a bigger home, assuming that you’re working with a tight budget. The HDB PHG can even be used with different housing grants so you can decrease the total price of resale flats even more. Some examples include:

  • Enhanced CPF Housing Grant
  • CPF Housing Grant for Family
  • CPF Housing Grant for Singles

Checking For Distance To Ensure Eligibility

HDB’s Distance Enquiry Service makes it easy for individuals like you to know whether or not the resale flat of your choice is within 4km of your family’s flat. Doing this proximity grant check is crucial to ensure you qualify for the PHG Grant.

Unfortunately, this tool for HDB proximity check doesn’t show the flats that are currently available so you need to know the location of the flat before you put it in the HDB tool. You just need the following information:

  • Block number and street name; OR
  • Postal code

What If I Need To Sell My Flat?

When you sell your flat, you need to return the grant to your CPF account upon its sale, with interest.

For instance, if you want to buy a 4-room resale HDB flat near your mom and dad worth S$500,000, you will be entitled to an HDB Parent Grant of S$20,000. Therefore, you only need to pay S$480,000 for the flat.

If you sell it seven years from now, you need to sell it at a higher price to net more profits. Keep in mind that you need to return the S$20,000 to CPF plus 2.5% interest per year. This will cut your profits to S$23,774.

As most of the money will be returned to your CPF OA, you can use this for your next home purchase.

Remember that there is a maximum of S$60,000 from grants you’ve taken, including SHG, PHG, EHG, and/or AHG, that will be returned to your OA. All excess money will be evenly distributed to your Medisave account and SA.

About The Home Of Your Parents

As stated above, your parents don’t need to live in an HDB flat for you to enjoy the HDB PHG. However, they need to live on the property their children want to stay near to. They must also be the owner and occupier of the home. It must not be a home that’s purely for investment or used to rent out to others.

For those who want to buy a resale flat near their parents, they must also stay in their property throughout the current 5-year MOP. This means they are tied down to the home.

Who Is The Proximity Housing Grant Most Beneficial For?

The near to parents grant is highly beneficial for any Singaporean who wants to monitor their parents in their silver or golden years, even though they live in a mature estate. The near to parents grant is crucial since mature estates do not have enough BTO launches, and even if there is one, the competition can be tough.

Resale flats that come with savings thanks to HDB near parents grant are an amazing alternative. Although the proximity grant HDB is not enough to significantly lower the price of resale flats, it’s still a great way to save money.

Should You Apply For The Proximity Housing Grant?

Now comes the question in everyone’s mind: should everyone who qualifies for the HDB Proximity Grant apply for it? After all, everyone wants savings from this stay near parents grant, right?

If you plan on staying near or with your parents for the next 5 years, then yes. This is also the same MOP for resale flats. If you or your parents have an intention to move out in the near future, then applying for the PHG may not be the best idea since it could hamper your future plans.

A Word From OMY

The HDB Proximity Housing Grant is truly one of the best efforts from the government to help Singaporeans stay closer to their families. Now that you know the savings and advantages you can get from this grant, you can finally start looking for an HDB resale home to purchase.

More From OMY: BTO vs Resale Flats: Which Is Better?

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