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HDB disbursed S$1.56 billion in EHG to 49,500 households from 2019 to 2022

More than one-third received the Enhanced CPF Housing Grant in 2022 alone.

Facade of Housing and Development Board (HDB) apartment units in Singapore, illustrating a story on Enhanced CPF Housing Grants (EHG).
Some 49,500 Singaporean households received S$1.56 billion in Enhanced CPF Housing Grants (EHG) from 2019 to 2022 to buy HDB flats. (PHOTO: Getty) (tang90246 via Getty Images)

SINGAPORE — The Housing and Development Board (HDB) has disbursed S$1.56 billion in Enhanced CPF Housing Grants (EHG) to 49,500 first-timer households from September 2019 to December 2022.

In figures released on Wednesday (17 May), the HDB said that the amount of EHG disbursed has increased from year to year, rising from S$454 million in 2020 to S$564 million in 2022. HDB noted that this was in line with the higher sales volume of HDB flats and the increasing number of eligible homebuyers.

Of the 49,500 recipient households, more than one-third, or 18,000 first-timer households, received the EHG in 2022. In 2021, 16,000 first-timer households received a total of S$499 million in EHG.

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There were also about 28,400 households that bought a flat from HDB across the various sales modes, such as Build-to-Order (BTO), Sale of Balance Flats and open booking of flats. Meanwhile, the rest of the recipient households, or about 21,000 households, bought a resale flat.

A chart indicating the amount of Enhanced CPF Housing Grants disbursed to first-timer households from 2019 to 2022.
Amount of EHG disbursed over the years. (SOURCE: HDB) (Housing and Development Board)

Housing grants a financial relief

HDB also noted that the EHG had enabled a majority of flat buyers to keep their monthly housing loan instalments at 25 per cent or less of their monthly income.

About 90 per cent of flat buyers who collected the keys to their new flats in non-mature estates, and more than 80 per cent of flat buyers who collected keys to their new flats in mature estates in 2022, used 25 per cent or less of their monthly income to service their HDB loan instalment payments.

This means that some buyers can service their HDB loans using their monthly CPF contributions, with little or no cash outlay.

In a Facebook post, Minister for National Development Desmond Lee cited a couple, Hasri and Nurul, as an example of first-time homebuyers who were recipients of the EHG and used it to purchase a 4-room BTO flat in Yishun.

"Like the 80 per cent of BTO and resale flat buyers who collected their keys in 2022, they have the option of servicing their monthly mortgage loans solely through their CPF, with no cash outlay required," said the minister.

With the addition of other housing grants, such as the Proximity Housing Grant (PHG) and the CPF Housing Grant, HDB said that almost 80 per cent of first-timer families who collected the keys to their resale flats in 2022 used 25 per cent or less of their monthly household income to service their HDB loans, with little or no cash outlay.

EHG eligibility

The EHG, which replaced the Additional CPF Housing Grant (AHG) and the Special CPF Housing Grant (SHG), was introduced by HDB in September 2019 to provide support to lower and middle-income families buying their first homes.

The grant is available to eligible first-time home buyers who are looking to purchase a new or resale HDB flat. There are also no restrictions on buyers regardless of their choice of flat or location.

First-timer families must not earn more than S$9,000 a month to be eligible for an EHG of up to S$80,000. For first-timer singles to become eligible and receive an EHG of up to S$40,000, they must be aged 35 and above and earn not more than S$4,500 a month.

Additionally, families who wish to purchase a resale HDB flat that is within a 4km proximity to their parents or children may also be eligible for a PHG of up to S$30,000, while eligible singles can receive up to S$15,000.

A table that lists the various housing grants given by the Housing and Development Board.
The different HDB housing grants available. (SOURCE: HDB) (Housing and Development Board (HDB))

First-timer families who are looking to buy a two to four-room resale flat may also be eligible for the CPF Housing Grant of up to S$80,000 and S$40,000 for singles. First-timer families who prefer a five-room flat or larger are eligible for up to S$50,000, while singles vying for the same type of flat are eligible for up to S$25,000.

The latest CPF Housing Grant amounts were revised in February 2023 when Deputy Prime Minister and Minister for Finance Lawrence Wong announced in his budget speech that the government would increase the maximum CPF Housing Grant from S$50,000 to S$80,000 to increase the support for first-timers buying resale HDB flats.

In total, eligible new flat buyers could receive up to S$80,000 in housing grants, while eligible resale flat buyers could receive up to S$190,000 through the various housing grants.

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