Dear KEO

            As you may have heard, Prime Minister Mr Lawrence Wong announced at the National Day Rally 2024 on 18 Aug 2024 that the Government will increase the Enhanced CPF Housing Grant (EHG) for the purchase of new and resale HDB flats. This will provide greater support to lower-to-middle income first-time home buyers. On the other hand, with effect from 20 August 2024, 12.00am, the Loan-to-Value (LTV) limit for housing loans provided by HDB will be lowered from 80% to 75%.  This aims to further encourage financial prudence and promote a stable and sustainable public housing market.

Increase in Maximum Amount of Enhanced CPF Housing Grant for First-timers

2         The EHG will be increased by:

         a)   Up to $40,000, from the current maximum amount of $80,000 to $120,000, for eligible first-timer families. With the revised EHG, eligible first-timer families who buy a resale flat can enjoy up to $230,000 in housing grants, comprising the revised EHG of up to $120,000, a CPF Housing Grant of up to $80,000 and a Proximity Housing Grant (PHG) of up to $30,000. 

         b)   Up to $20,000, from the current maximum grant of $40,000 to $60,000, for eligible first-timer singles. With the revised EHG, eligible first-timer singles who buy a resale flat can enjoy up to $115,000 in housing grants, comprising the revised EHG of up to $60,000, a CPF Housing Grant of up to $40,000 and a PHG of up to $15,000.

3         The revised EHG will apply to eligible first-timer households who submit a resale flat application on or after 20 August 2024.  Nevertheless, for eligible first-timers whose resale flat transaction has been accepted and is pending completion, HDB will extend the revised EHG to them within two months from the date of their resale completion. They do not need to approach HDB; nor will they face any disruption to the timely completion of their resale transaction.

4         For those who have an HDB Flat Eligibility (HFE) letter but yet to submit a resale application, HDB will update their HFE letter via the HDB Flat Portal to reflect the revised EHG amount and notify them by email. 

Lowering of LTV Limit for HDB Housing Loans 

5         The revised LTV limit will apply to complete resale applications which are received by HDB on or after 20 August 2024.  There is no change to the LTV limit for loans granted by financial institutions, which remains at 75%.

Providing Affordable & Accessible Public Housing

6         The Government remains committed to keep public housing affordable and accessible for Singaporeans, through our review of the existing policies and implementation of new measures. We will continue to monitor the property market closely and adjust the policies as necessary to promote a stable and sustainable public housing market.

7         For more details, you may refer to the press release. Please disseminate the information to your salespersons. Thank you.

  
Yours sincerely

Terence Chan
Ag Director (Resale)
Estate Administration & Property Group