A Guide to the Enhanced CPF Housing Grant (EHG)

What is the Enhanced Housing Grant (EHG)?

The EHG is a housing grant provided by CPF (Central Provident Fund) for eligible first-time flat buyers in Singapore. It is designed to make housing more affordable and accessible for Singaporeans who are purchasing a new Build-To-Order (BTO) flat or a resale flat in the open market.

How much EHG can I receive?

If you are a first-time applicant for a new flat, you can be eligible for an EHG of up to $80,000. For eligible first-time singles, there is an EHG (Singles) of up to $40,000 available.

Similarly, eligible first-time households purchasing a resale flat can receive 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 benefit from up to $160,000 in housing grants!

How does EHG function?

To qualify for the EHG, the monthly household income for first-time families should not exceed $9,000 (see Table 1 below). For eligible first-time singles, the age requirement is 35 and above, with a monthly income of less than $4,500. In both cases, the buyer or their spouse must have been employed continuously for the 12 months prior to the flat application date and must remain employed at the time of 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

First-time homebuyers purchasing resale flats can receive housing grants of up to $160,000, including the Enhanced Housing Grant (EHG) worth up to $80,000, CPF Housing Grant of up to $50,000, and Proximity Housing Grant (PHG) of up to $30,000.

For instance, let's consider Couple B, who are both Singapore Citizens and have a combined monthly household income of $4,800. They are buying a 4-room flat in an established neighborhood to be closer to their parents. They qualify for a CPF Housing Grant amounting to $50,000, an EHG of $45,000, and a Proximity Housing Grant (PHG) of $20,000.

See Table 2 for more details on the 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?

If the purchased flat does not have enough lease to cover the buyers and their spouses until the age of 95, the Enhanced Housing Grant (EHG) amount will be adjusted. This requirement also applies to repurchased flats under specific exercises. For instance, let's consider Couple C, both 30 years old, with a monthly household income of $4,800. They bought a resale flat with a remaining lease of 60 years. Since the flat cannot cover them until the age of 95, they are eligible for an EHG of $40,000 instead of the full 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 include 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