Hurray! You’re already one step closer to getting your dream house (kinda, the step is quite big). But before you can even take that huuuuge step, you’ll probably want to find out which housing grants you’re eligible for – AHG, SHG, grants, grants, grants. Well, to put it in simpler terms – this article basically helps you figure out how much money the government can give you!
Here’s an overview of the CPF Housing Grants available.
Image Credit: areyouready.sg (edited by How to Adult to reflect Budget 2018 changes in PHG)
Some terms & conditions to take note:
(i) Housing Grants are for first-timers only. You will be considered a first-timer applicant if you have not received any housing subsidy from HDB.
This means that you must not:
- Be the owner of a flat bought from HDB
- Have sold a flat bought from HDB
- Have bought an Executive Condominium (EC), Design, Build and Sell Scheme (DBSS) flat or a HDB resale flat with CPF Housing Grant, or taken over ownership of such a flat or EC
- Have transferred the ownership of a flat bought from HDB, or an HDB resale flat bought with a CPF Housing Grant
- Have ever taken other forms of housing subsidy, such as Selective En bloc Redevelopment Scheme benefits or privatisation of HUDC estate
(ii) You OR your spouse need to be continuously employed for 12 months at the time of application. The How To Adult team found out from peers’ personal experiences that CPF is very strict about this rule.
Hence, couples with only one person currently employed – do take note if you are switching jobs and looking to secure a grant. You should try switching jobs without lapsing in your CPF contributions or else you’ll not be eligible for the grant.
(iii) Housing grants are not handed to you as cold hard cash, they will be credited in your CPF Ordinary Account after flat booking to help you offset the purchase price of the flat and lowering the mortgage amount needed.
(iv) Before you take up a loan from HDB or bank, your grant amount and CPF OA savings will be first depleted to offset your downpayment or price of house if there is excess grant amount.
Find out what grants you are eligible to receive with this flowchart:
The Housing Grant amount received depends on the average gross monthly household income for the 12 months prior to you submitting your flat application. Families with lower household incomes will receive a larger grant amount.
Are you still confused?
Just use this flow chart and then find your exact entitled grant amount in the table below. Viola!
Budget 2018 update for Proximity Housing Grant: You are eligible for increased grant amount of $30,000 if you are living WITH your parents. If you are staying NEAR your parents, the grant amount remains at $20,000.
Near is now defined as within 4km proximity as revised from previous criteria of 2km or residency in the same town.
Calculation of grant for BTO flats
Average Monthly Household Income* Over 12 Months |
AHG ($) |
SHG (from Nov 2015) ($) |
Total ($) |
Up to $1,500 |
40,000 |
40,000 |
80,000 |
$1,501 to 2,000 |
35,000 |
40,000 |
75,000 |
$2,001 to 2,500 |
30,000 |
40,000 |
70,000 |
$2,501 to 3,000 |
25,000 |
40,000 |
65,000 |
$3,001 to 3,500 |
20,000 |
40,000 |
60,000 |
$3,501 to 4,000 |
15,000 |
40,000 |
55,000 |
$4,001 to 4,500 |
10,000 |
40,000 |
50,000 |
$4,501 to 5,000 |
5,000 |
40,000 |
45,000 |
$5,001 to 5,500 |
Nil |
35,000 |
35,000 |
$5,501 to 6,000 |
Nil |
30,000 |
30,000 |
$6,001 to 6,500 |
Nil |
25,000 |
25,000 |
$6,501 to 7,000 |
Nil |
20,000 |
20,000 |
$7,001 to 7,500 |
Nil |
15,000 |
15,000 |
$7,501 to 8,000 |
Nil |
10,000 |
10,000 |
$8,001 to 8,500 |
Nil |
5,000 |
5,000 |
Calculation of grant for Resale flats
Family Grant
Image Credit: HDB
Additional Housing Grant (AHG):