Every time we hear that a HDB flat was sold for over $1 million, our jaws drop and eyes go wide—or maybe that’s just me. But resale HDB flats going at that price have become more and more common over the years.
In June 2024 alone, 96 HDB resale flats were sold for $1m or more, while in May, there were 74 of such sales, according to property site 99.co.
BTO flats aren’t that cheap either, especially if you want a good location. A four-room HDB BTO in Kallang/Whampoa starts from $568,000 while another four-room at Queenstown starts from $582,000.
If you’re looking for your new home and are dreading the strain on your finances for the next 20+ years, you’ll definitely want to find as many ways as possible to lighten the load.
Fortunately, there are things called HDB grants. These grants are essentially CPF housing grants provided as CPF top-ups. When you sell your flat in the future, you’ll need to return the grant amounts to your CPF account.
There are different types of grants available for HDB BTO and HDB resale flats, each with different eligibility criteria and conditions.
At the National Day Rally 2024, PM Lawrence Wong recently announced some changes aimed at cooling the HDB resale market, which include an increase in some grants.
Let’s break them down.
Guide to HDB grants in Singapore 2024
- HDB grants (CPF housing grants) at a glance
- HDB BTO & resale: Enhanced CPF Housing Grant (EHG)
- HDB resale flat: CPF Housing Grant (Families)
- HDB resale flat grant: Proximity Housing Grant (PHG)
- HDB executive condominium (EC): CPF Housing Grant for ECs
- Examples of HDB grants in action
- Important things to know about CPF housing grants
1. HDB grants (CPF housing grants) at a glance
Most Singaporeans or Permanent Residents (PRs) applying for a new or resale HDB flat can apply for an HDB (or CPF) grant. Depending on your eligibility, you may qualify for multiple grants, further reducing the cost of your flat.
These grants are credited to the applicant’s CPF Ordinary Account after the flat is booked and are used to offset the purchase price, thereby lowering the required home loan amount.
Whether you’re single or applying as a family (note that a married couple without children is considered a family), there are different criteria for various grants. Here’s an overview of the HDB grants available for different housing types:
| HDB type | CPF housing grant | Income ceiling | Grant amount |
| BTO / resale | Enhanced CPF Housing Grant (EHG) | $9,000 | $5,000 to $120,000 |
| Resale | CPF Housing Grant | $14,000 | $25,000 to $80,000 |
| Resale | Proximity Housing Grant (PHG) | None | $20,000 to $30,000 |
| EC | CPF Housing Grant for ECs | $16,000 | $5,000 to $30,000 |
Totalling it up, this is the maximum grant you can get for the different flat types, assuming you qualify for all:
| Grants for families/couples applying for the first time | Grants for singles applying for the first time |
| HDB BTO grant: EHG = up to $120,000 (also applies to sale of balance flats too) | HDB BTO grant: EHG = up to $60,000 |
| HDB resale grant: EHG ($120k) + CPF Housing Grant ($80k) + PHG ($30k) = up to $230,00 | HDB resale grant: EHG ($60k) + CPF Housing Grant ($40k) + PHG ($15k) = up to $115,000 |
| EC grant: CPF Housing Grant for ECs = $5,000 to $30,000 | |
There’s also a Step-Up CPF Housing Grant for second-time flat applicants. For the purpose of this article, we’ll only cover the grants for first-time HDB applicants.
2. HDB BTO & resale: Enhanced CPF Housing Grant (EHG)
The Enhanced CPF Housing Grant is an HDB grant aimed at helping the majority of lower to middle-income families afford a home. This grant can be used for both HDB BTO and HDB resale flat applications, helping to offset the purchase price and reduce the housing loan needed for the flat purchase.
Who is it for: Singaporean couples/families earning $9,000 or less per month, calculated as average household income across the past 12 months. At least 1 applicant has to be working for at least a year.
HDB flat eligibility: Both new (BTO/sale of balance) and resale flats are eligible. For resale flats, the remaining lease must be at least 20 years, and must cover the younger person up to 95 years old.
Grant amount: From $5,000 to $120,000.
In Aug 2024, HDB announced an increase to the EHG to $120,000 from $80,000. The grant amount you get is correlated to your household income, so the less you earn, the more you get. Check out the full list of the EHG amount you can get based on your household income.
What about singles? Singles aged 35 and above applying for a resale HDB flat for the first time are eligible for EHG (Singles) if they earn less than $4,500 per month. The grant amount is halved so they can get between $2,500 to $60,000. If buying with 2 singles, both may be eligible for the EHG of up to $120,000, and income must not exceed $9,000.
What about foreigners? Those with a non-resident spouse qualify for the singles’ grant. They can get up to $40,000 in grants based on their household income. The only difference is that you would qualify from age 21 (instead of the usual 35, for singles).
3. HDB resale flat: CPF Housing Grant (Families)
HDB resale flats usually cost more than a BTO but first-time HDB applicants can apply for the CPF Housing Grant to subsidise the cost of their flat. You can stack the Family Grant with the EHG (above) to make HDB resale flats more affordable.
Who is it for: First-timer couples or families buying a resale flat. The combined income ceiling for couples is $14,000. If you’re applying with more family members, such as your parents, the household income ceiling is $21,000.
HDB flat eligibility: Any resale flat, 2-room and larger.
Grant amount: For couples/families who are all Singapore citizens, the Family Grant is either $80,000 (2- to 4-room flat) or $50,000 (5-room and up). If applying as a citizen-PR couple, you get $10,000 less, but you can get it back later on if the PR converts into a citizen or if you have a child.
What about singles? There’s a singles version of this, known as the Singles Grant for singles aged 35 years and above earning less than $7,000 per month. As with the EHG, the income ceiling and grant amounts are halved. The Singles Grant is $40,000 (2- to 4-room) or $25,000 (5-room or bigger).
What about foreigners? Citizen-foreigner couples are eligible for the same Singles Grant just mentioned. Your gross monthly household income must not exceed $14,000.
4. HDB resale flat grant: Proximity Housing Grant (PHG)
As the name suggests, this grant is for those who are applying for a resale flat within 4km of their parents. The Proximity Housing Grant (PHG) can be stacked with the EHG and Family Grant so you can get a larger ‘discount’.
Who is it for: HDB resale flat buyers living with OR within 4km of their parents. It also applies to older couples who want to move closer to their married children. There is no income ceiling and it doesn’t matter if you’re a first or second-time applicant.
HDB flat eligibility: Any resale HDB flat (2-room or bigger) as long as the lease has at least 20 years left. (Note: The parents’ / married children’s home need not be HDB flat; it can be private property too.) This is a one-time grant.
Grant amount: $20,000 if you live within 4km radius of your parents/married children. Or get $30,000 if you apply to live with your parents or child.
What about singles? You can apply for the Proximity Housing Grant too as long as you’re 35 years old and above. You’ll get $10,000 if you live within 4km of your parents or $15,000 to live with your parents/child.
5. HDB executive condominium (EC): CPF Housing Grant for ECs
Buying an Executive Condominium (EC) costs way more than a BTO and usually a resale, so at least there’s a grant for first-timers getting one.
Who is it for: Get up to $30,000 if you’re a first-timer and your household income is $10,000 or less. If your household income is $12,000, you get slightly less at $10,000.
If one of you is a first-time applicant and the other, a second-time applicant, unfortunately, you only get half of the grant amount.
HDB flat eligibility: ECs of any type, when bought directly from the developer. You can apply for the grant when booking your EC unit.
Grant amount: Assuming the buyers are both Singapore citizens, you can get $10,000 to $30,000, depending on your income. For citizen-PR households, the grant is $10,000 less, which you can get ‘refunded’ later if you have a child or the PR converts into a citizen.
What about singles? Nah, you can’t buy new ECs. If you want to, you’d have to apply with another single person, and both of you would have to be 35 and above. But you don’t get a grant in this case.
6. Examples of HDB grants in action
Let’s say you and your fiancee (straight couple, both citizens) are fresh grads, have been working for a year, and your combined household income amounts to $8,000.
This is the best time to apply for an HDB flat since your combined income is probably at its lowest (assuming both parties continue to advance in their career), so you qualify for all public housing types and most grants. Here’s how the HDB grants factor into your options:
| Purchase price | HDB grant amount | Final price | |
| HDB BTO/SBF | $350,000 | $15,000 (EHG) | $335,000 |
| HDB resale flat | $450,000 | $80,000 (Family Grant) + $15,000 (EHG) + $20,000 (PHG) = $115,000 | $335,000 |
| Executive condo | $800,000 | $30,000 (CPF Housing Grant for ECs) | $770,000 |
Now let’s consider another couple who is a few years into their careers and earning a combined $9,000 a month. Perhaps at this point, they may be considering only HDB flats in the more prestigious “top school” locations, which impacts the price of the properties:
| Purchase price | HDB grant amount | Final price | |
| HDB BTO | $550,000 | $5,000 (EHG) | $500,000 |
| HDB resale flat | $650,000 | $80,000 (Family Grant) + $5,000 (EHG) + $20,000 (PHG) = $105,000 | $545,000 |
| Executive condo | $800,000 | $30,000 (CPF Housing Grant for ECs) | $770,000 |
As you can see, the stacked HDB grants close the gap between HDB BTOs and resale flats.
7. Important things to know about CPF housing grants
There are just 3 quick points we need to make:
1. You have to return all HDB grants to your CPF with interest
HDB grants don’t directly reduce the price of your flat. Instead, the grant amount is deposited into your CPF Ordinary Account (OA) and then applied towards your down payment. This makes them more like loans than discounts. When you eventually sell your HDB flat, you’ll need to repay the grant money plus interest, which accrues at an annual rate of 2.5%. This also applies to any CPF savings used for the down payment or mortgage.
While you can use your CPF OA savings for your next home purchase, there’s a catch. Suppose you received more than $30,000 in grants. In that case, any amount beyond that will be transferred to your CPF accounts for retirement (Special Account or Retirement Account) or medical expenses (Medisave), making it less accessible to purchase another home.
2. You can’t use the grants to skip out on your down payment or monthly repayment
While HDB grants can help reduce the upfront cost of a flat, you will still need to repay your home loan (unless you did not take out a loan). It’s important to note that grants cannot be used for everything. For instance, if you choose a bank loan, there is a mandatory 5% down payment that must be made in cash which grants won’t cover. Additionally, grants cannot be used to cover your monthly mortgage installments completely.
If you’re unsure about taking an HDB loan or bank loan, read this article to figure out what’s best for you.
3. You may need to pay a resale levy when buying a new property
Buying a new HDB flat with a CPF Housing Grant comes with restrictions if you want to buy another subsidised property later. The government charges a resale levy to prevent people from benefiting from multiple housing subsidies.
The cost of the resale levy depends on the size of your first HDB flat. There’s no levy for resale flats or private properties.
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Buying an HDB BTO Flat in Singapore: A Step-By-Step Guide (2024)
HDB Sale of Balance Flats: Guide to SBF & Open Booking (2024)
Step-by-Step Guide to Buying an Executive Condo (EC) Unit in Singapore