I'm a young buyer and from 11 sept 2019, there will be changes to HDB enhanced housing grants.
Here's a simple summary of what I understand for young couples buying HDB flat also.
First change: Income ceilings increased to $14,000 for grants and BTOs eligibility
What is a income ceiling/ How do you identify your income ceiling?
It is your average gross monthly household income for 12 months.
In short, it's the total monthly income of you and your spouse.
If you are buying a BTO, the income ceiling has increased from $12,000 to $14,000.
Previously a couple earning $13,000 will not be able to apply for BTO. But now it's ok!
As for an Executive Condo (EC), the income ceiling has increased from $14,000 to $16,000.
Second change: Enhanced housing grants will have NO location restrictions
Previously, it was Additional Housing Grant (AHG) and Special CPF Housing Grant (SHG)
You would get AHG if your combined income level was less than $5,000 previously.
To get the SHG, you'd need to buy a 4-room or smaller flats in a non-mature estate.
Some examples of non-matured estates include Punggol, Yishun and Bukit Batok.
With the new changes, AHG and SHG will be replaced by Enhanced housing grants (EHG).
So what's good about EHG?
You can choose all BTO and resale flats and there is NO restriction on flat size or estate!
To be eligible for the Enhanced CPF Housing Grant, you and your spouse must be:
1) Both first-timers
2) Have been employed continuously for at least 12 months
3) Buy a flat has lease enough for you to call home until age 95
(If the lease does not cover till 95 years old, the sum will be pro-rated - separate topic...)
Read on how CPF rules have changed for old flats: ... Changes To CPF Usage On Resale Flat May Not Be Good For Young Couples, Here’s Why!
So how much Enhanced Housing Grant (EHG) would you receive?
By the way, grants will be fully credited into your CPF Ordinary Account.
This is done after you have booked your flat by paying the "OPTION FEE".
The option fee is $1,000 for 3-room flats and $2,000 for 4-room or larger.
Source. Previous AHG and SHG application form
This new EHG would be used to offset the price of the flat.
It is FULLY dependent on your combined income range. You can see the table below for details.
Example of the difference:
If you and spouse were earning $7,000 in total and chose a flat at Bukit Merah (matured estate), previously you'd get $0 grant from AHG and $0 grant from SHG!
But now with EHG, you'd get a $25,000 grant!
If you have already applied for resale flat already how?
EHG will NOT be retrospectively applied to flat applications received before 11 Sep.
The previous grant criteria in AHG and SHG would still apply.
I was thinking, it this difference in EHG is worth $25,000 like the one above, is there any way to cancel the flat application and pay penalties?
Possibly $80,000 more grants on top of Enhanced housing grants for RESALE flats
I think these 2 extra grants from a resale flat makes it appealing.
The first is Proximity Housing Grant (PHG)
If you're thinking of living near your parents also, this could be a $30,000 grant!
Just buy resale houses within 4km of your parents. I mean these are 3 benefits to consider
- With kids, you can leave them with your parents easily
- Your parents can cook food for you and you could save money
- It's so much less hassle to do parent visits when it's near.
The second is the Family Grant and you can get it if you are both first timers.
For both Singapore citizens, it is an extra $50,000 if combined income is less than $9,000 now!
Should grants be the main deciding factor in which HDB to buy?
Waiting period seems long for a BTO but prices are definitely even compared to a resale with grants.
I've already found some September 2019 Launch so I'd leave it here.
Punggol launch and waiting time is 46 to 48 months (Punggol Point Cove) and 42 to 45 months (Punggol Point Crown)
Tampines GreenGlen has only 4 room and 5 room with waiting time : 37 to 39 months. Source
The grants will definitely reduce the cost of purchase by a lot regardless of which is chosen.
This post on what to consider when consider when buying your HDB flat might be useful to you too. In it you'd find bank loan vs HDB loan, BTO vs SERS vs ROF vs resale.... etc... click link below.