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Second-Timer Applicants

Second-Timer Applicants

The Step-Up CPF Housing Grant is available to eligible second-timers applying for a second subsidised HDB flat.

Grant Type

Step-Up CPF Housing Grant

Flat Type Applied For

A new 3-room flat in a non-mature estate.

Conditions

Current Flat Type

A 2-room subsidised flat in a non-mature estate that is:

  • Bought from HDB after October 1995, or from the resale market with a CPF Housing Grant
  • Your first subsidised flat

Employment

You and/ or your spouse/ fiancé(e) are employed at the time you submitted the flat application, and have been continuously employed for the 12 months prior to the flat application

Remaining Lease of Flat

30 years or more

Grant Amount

$15,000

How to apply

If eligible, you will be given the application form for the Step-Up CPF Grant during the flat booking appointment for your new 3-room flat in a non-mature estate.

When you come for the flat booking appointment, please bring the necessary income documents (see below) for the 12 months prior to your flat application.

Disbursement

CPF Housing Grants will be fully credited into the CPF Ordinary Accounts of eligible Singapore Citizen (SC) applicants. No cash is disbursed.

Type of Applicant(s)

Distribution of Grant

Sole SC applicant

Full grant

Joint SC applicants (husband and wife)

Half of the full grant each

Multi-nuclei SC applicants, e.g.:

  • Married siblings with their respective spouses
  • Parents and married child

Grant given only to a maximum of 2 applicants who are husband and wife, and who are also the current owners of the 2-room subsidised flat

Usage

CPF Housing Grants can be used to:

  • Offset the purchase price of the flat
  • Reduce the mortgage loan for the flat purchase

The grant cannot be used for the cash downpayment (if any) and monthly mortgage instalment payments.

If you are buying the flat with a bank loan, the grant will also be included in the computation of the CPF withdrawal limit.

 

Income documents

The income documents you are required to bring for your flat booking appointment depend on your nature of employment. We may also request further documentation if needed.

Nature of Employment

Documents to Submit

Employed person

  • 12 months’ payslips preceding the flat application

Or

  • Letter from employer certifying salaries for 12 months preceding the flat application. The letter must contain the:
    • Company stamp/ letterhead
    • Certifying officer’s name, signature, and designation

And

  • CPF Yearly Statement of Account for current year and the immediate past year
  • CPF statements showing contributions for the 12 months preceding the flat application

Notes:

Flat applications before Aug 2018 sales launch:

  • If you are employed full-time but on no-pay leave (e.g. full-time studies) for the 12 months in review, we will consider you as employed and take your last drawn full-time pay to assess your eligibility for the AHG.

Flat applications from Aug 2018 sales launch onwards:

  • If you are employed full-time but on no-pay leave (e.g. full-time studies) for less than 6 months out of the 12 months in review, we will consider you as employed and take your last drawn full-time pay to assess your eligibility for the AHG.
  • If you are employed full-time but on no-pay leave for 6 months or more out of the 12 months in review, your income will not be considered in the assessment.

Self-employed person

Or

  • Statement of Annual Accounts certified by an audit firm

And

Or

  • Valid licence of trade

Part-time worker/ Commission-based person

  • 12 months’ payslips/ commission statements preceding the flat application

Or

  • Letter from employer certifying salaries for the 12 months preceding the flat application. The letter must contain the:
    • Company stamp/ letterhead
    • Certifying officer’s name, signature, and designation

And (for commission-based person)

  • CPF Yearly Statement of Account for current year and the immediate past year
  • CPF statements showing contributions for the 12 months preceding the flat application

Odd job worker

And

  • Previous year’s NOA from IRAS

Full-time student receiving stipends

  • Letter from the education institute stating the period and nature of study (full or part-time)
  • Copy of signed contract between the applicant and the education institute stating the conditions of the stipend

Notes:

  • You will be considered as employed if, during full-time studies, you receive stipends which are work-related, e.g. you conduct teaching/ research work for the educational institute giving the stipend
  • You will not be considered as employed for all other work done during full-time studies.

Income/ allowance that will be considered for the income ceiling
  • Allowances (fixed/ variable) received on a regular basis, such as allowances for food, transport, laundry, uniform
  • ^Sustenance Allowance
  • Stipend
Income/ allowance that is not considered for the income ceiling

  • Alimony allowance
  • Bonuses
  • Income from overtime work
  • Interest from deposit accounts
  • National Service Allowance
  • Pension
  • Rental income
  • Scholarship overseas allowance
  • ^Overseas cost of living allowance
  • ^Director’s fee

Notes:

^Applicable for applications received from Aug 2018 sales launch onwards

Examples

Check here for Step-Up CPF Housing Grant examples.

Example 1

Mr and Mrs C (both SCs) are the current owners of a 2-room flat in Jurong West that was bought from HDB.

They are applying for a new 3-room Build-To-Order (BTO) flat in Yishun. They have been continuously employed for the past 12 months prior to their flat application. Their gross monthly household income at the time of flat application is $4,000.

Grant Type

Step-Up CPF Housing Grant

Flat Type Applied For

3-room flat in non-mature estate

Conditions

Current Flat Type

2-room subsidised flat in a non-mature estate

Employment

Mr and Mrs C have both been continuously employed for the past 12 months, and were still employed at the time of their flat application

Remaining Lease of Flat

> 30 years

Grant Amount

$15,000

Disbursement of Grant

Mr C receives $7,500

Mrs C receives $7,500

Mr and Mrs C will each receive $7,500 of the Step-Up CPF Housing Grant, for a total grant amount of $15,000.

How the Step-Up CPF Housing Grant helps the couple in buy the 3-room flat

  • Step-Up CPF Housing Grant amount: $15,000
  • Monthly contribution to CPF Ordinary Account: $920
  • Total CPF savings: $46,000

 

Without Step-Up CPF Housing Grant

With Step-Up CPF Housing Grant

Purchase price of a 3-room flat (A)

$170,000

$170,000

10% downpayment (B)

  1. Pay by Step-Up Grant

  2. Pay by CPF savings

 

N/A

$17,000

 

$15,000

$2,000

Balance purchase price (C = A - B)

$153,000

$153,000

Balance Step-Up Grant and CPF Savings (D)

Balance Step-Up CPF Housing Grant

N/A

Nil

Balance CPF savings

$29,000

$44,000

Mortgage Loan Required (C - D)

$124,000

$109,000

Monthly loan instalment over 25 years repayment period

$563

$495

Monthly loan instalment paid with CPF contribution

$563

$495

Monthly loan instalment paid in cash

Nil

Nil

The Step-Up CPF Housing Grant helps to reduce the loan amount required, along with the monthly loan instalment.

Example 2

Mr and Mrs D (both SCs) are current owners of a 2-room flat in Sengkang, which was bought from HDB in 2006. They applied for a new 3-room BTO flat in Sembawang in March 2014.

Mr D was unemployed from March 2013 to September 2013. He began working in October 2013, drawing an average gross monthly income of $2,000, and was still employed in March 2014.

Mrs D was employed from March 2013 to September 2013 with an average gross monthly income of $1,800. However, she has been unemployed since October 2013.

Mr and Mrs D are not eligible for the Step-Up CPF Housing Grant as neither of them has been continuously employed for 12 months.