New Enhanced CPF Grant in Singapore To Provide Higher Grants and Wider Selection
First-Time Flat Buyers to Enjoy More Options and Higher Grants
Singaporeans buying a flat for the first-time will thrilled with the options provided in the new Enhanced CPF Grant (EHG) Singapore.
Flat buyers will soon get to choose the location and size of their flat. Housing Board flats in Singapore’s income ceiling has also been raised, a first since 2015. This means Singapore is now looking at a wider pool of eligible flat buyers.
The introduction of the EHG Singapore aims to streamline two older grants, and provide couples with greater flexibility financially. The grant aims to give couples more options to choose from so they can find a flat that meets all their requirements.
Simultaneously, the EHG Singapore will tackle Singapore’s growing demand for homes without the need to build new flats. The way this incentive structure has been set up, buying resale flats will now be an attractive option.
This is a set up from the older grants in Singapore. Previously, incentives and subsidies were mostly geared push first-timers towards newer flats. The new grant however, hopes to strike a better balance.
Singapore’s Prime Minister Lee Hsien Loong hinted at the new changes during the last National Day Rally. However, the new grant does have one caveat to it. The lease involved must cover the flat buyers until 95-years of age. This is part of the authorities’ push for Singaporeans to get homes which will last a lifetime. Buyers who do not meet these conditions may be eligible for a pro-rated amount. This would depend on the lease involved.
Combination of Grant
Prior to this, Singapore had only three grant structures to choose from. The first is the CPF Housing Grant with $50,000 for resale flats. The second is the Additional CPF Housing Grant (AHG), capped at $40,000 for those with a monthly income below $5,000. The third is the Special CPF Housing Grant (SHG), capped at $40,000 for those with a monthly income of $8,500 and below. These were for flat buyers looking for small or four bedroom places in non-mature estates.
As of today, the new EHG Singapore will combine the AHG and SHG. This will be capped at $80,000 for eligible buyers. This includes those looking to buy resale flats and any buyer not eligible for the SHG previously. The new income threshold for the EHG will be at $9,000.
Resale flat buyers may be eligible for up to $160,000 in grants. This amount is a third more than what it was before. Singaporeans looking to buy newer flats and executive condominium units will enjoy the raised income ceiling. The new figure is $2,000 higher than what it was before.
Singapore’s Housing Development Board may look at increasing its “Built to Order” supply come 2020. This will help meet the growing demand for public housing.