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.
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.