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National Day Rally 2015

On 24 August 2015, the Minister for National Development announced three measures to better meet the housing needs of Singaporeans and help families live together or closer to one another for mutual care and support.

 

Helping extended families to live together or closer to one another

Proximity Housing Grant

A new Proximity Housing Grant (PHG) of $20,000 has been introduced to further help families who want to buy a resale flat, to live with or close to their parents or married child.

Eligible singles will also enjoy a PHG of $10,000 if they buy a resale flat with their parents.

This is regardless of the households’ past housing subsidies enjoyed, their income and ownership of private property. The PHG can be enjoyed only once, and both the grant recipients and their parents/ married child, must live with or in the same town/ estate or within 2 km of their parents’ or married child’s home, for at least 5 years.

With the implementation of PHG, the Higher-Tier CPF Housing Grant will be discontinued.

This new measure will be effective for resale applications received on or after 24 August 2015.

iFAQs

Why is the PHG offered to all resale flat buyers, including those who have already enjoyed the maximum of two housing subsidies, as well as high-income households and private property owners?

Why must singles live with their parents to enjoy the PHG, while married couples can live separately from their parents and still enjoy it too?

Extending housing subsidies to more Singaporeans

Raised income ceilings

With effect from 24 August 2015, HDB will raise the income ceilings so that more eligible families and singles can buy new HDB flats and resale flats with the CPF Housing Grant, and get an HDB loan at concessionary interest rate.

Category

Raised Income Ceiling (per month/ household)

Remarks

Citizen families

Not more than $12,000

  • Can buy with an HDB loan at concessionary interest rate:
    • New HDB flats
    • Resale flats with CPF Housing Grant
    • DBSS flats with CPF Housing Grant

    Can buy:
    • New Executive Condominium units with CPF Housing Grant

 

Not more than $14,000

  • Can buy:
    • New Executive Condominium units

Singles

Not more than $6,000

  • Can buy with an HDB loan at concessionary interest rate:
    • 2-room BTO or balance flats in non-mature estates
    • Up to 5-room resale flats with Singles Grant

Singles with parents/

2 or more singles

Not more than $12,000

  • Can buy with an HDB loan at concessionary interest rate:
    • Resale flats with Singles Grant

Elderly citizens

Not more than $12,000

  • Can qualify for the:
    • Lease Buyback Scheme
    • Silver Housing Bonus

iFAQs

The income ceiling was last revised in 2011. Why is HDB revising the income ceiling again? 

Is HDB increasing the income ceiling to address the oversupply of BTO flats? 

With the revised BTO income ceiling of $12,000, households earning less than $10,000 per month will now face more competition for flats. How will HDB help this group?

Why is there a need to raise the income ceiling for singles – is the Government supporting singlehood?

 

More help for buying first home

Enhancements to Special CPF Housing Grant (SHG)

The SHG will be enhanced to further help first-time home buyers in buying their first flat from HDB in the non-mature estates:

• The income ceiling for the SHG will be raised from $6,500 to $8,500
• The maximum SHG amount will be doubled from $20,000 to $40,000

The SHG for singles who buy a 2-room BTO or balance flat in the non-mature estates, under the Single Singapore Citizen Scheme (SSC), will be enhanced:

• The income ceiling for the SHG will be raised from $3,250 to $4,250
• The maximum SHG amount will be doubled from $10,000 to $20,000

With the enhanced SHG, the maximum combined SHG and Additional CPF Housing Grant (AHG) for new flats will increase from $60,000 to $80,000. This sum may be higher than some lowest priced 2-room BTO flats.

To ensure that flat buyers continue to take ownership of their home purchases, they will be required to make a minimum co-payment of 5% of the selling price using their own CPF and/ or cash savings, if their total grant amount received is more than 95% of the selling price# of the flat that they book.

For flat owners who have received grants of more than $60,000* and have used these grants towards their flat purchase, upon subsequent disposal of the flat, the first $60,000 and accrued interest will be refunded to their CPF Ordinary Account. The grants in excess of the first $60,000 will be refunded to their CPF Special Account/ Retirement Account and Medisave Account.

This new measure will be effective from the November 2015 BTO and Sales of Balance Flats exercise.

iFAQs

Why has the income ceiling for SHG been raised to $8,500?

# Selling price refers to HDB’s published prices. It excludes the cost of Optional Component Scheme, the $15,000 which is applicable to Singles applying the Single Singapore Citizen Scheme and the $10,000 which is applicable to Singapore Citizen/Singapore Permanent Resident household and etc.

* The $60,000 limit will be computed based on the AHG, SHG and PHG disbursed from 24 Aug 2015 based on the revised policies for the purchase of the same or different flats. For singles, the limit is $30,000, half that of families.

 

National Day Rally 2015 Infographic