Subsidies and Financial Assistance Measures

Subsidies

The upgrading programmes help enhance the homes and living environment of Singaporeans living in public housing estates. These programmes form part of the Government's continual efforts to enhance Singaporeans’ quality of life through its public housing programme. 

Singapore Citizen households

If your household consists of a Singapore Citizen owner, the Government provides subsidies so that you will only need to pay a fraction of the total upgrading cost for your flat. 

Find out what subsidies are available for these upgrading programmes: 

Singapore Permanent Resident households

If all the owners in the household are Singapore Permanent Residents at the point of billing, you need to pay the full upgrading cost. If you opt to pay your upgrading costs in monthly instalments, you will be charged the HDB market interest rate. 

Eligibility conditions for reimbursement of upgrading subsidy

Your household can claim for reimbursement of upgrading subsidy and convert your interest rate from the HDB market interest rate to the HDB concessionary interest rate if you meet the following conditions:

  • Any Singapore Permanent Resident flat owner who has been billed for the upgrading cost obtains Singapore citizenship within 1 year from the date of billing
  • The reimbursement claim is made within 1 year of obtaining Singapore citizenship
  • The Singapore Permanent Resident flat owner who obtains Singapore citizenship must still be the flat owner at the time of reimbursement

Under the Main Upgrading Programme, the household is treated as having enjoyed an upgrading subsidy upon its reimbursement.

Financial assistance measures

If you are having trouble paying your monthly instalments of the upgrading cost, you can approach your managing HDB Branch for assistance. We offer financial assistance to flat owners

  • Whose gross monthly income does not exceed $2,000
  • Aged 55 years and above
  • In financial hardship

As monthly interest will be charged based on your outstanding balance each month, the interest will accumulate with the time you take to pay. Hence, we advise that you review your monthly repayment once your financial circumstances improve.

Flat owners whose gross monthly income does not exceed $2,000

If your gross monthly household income does not exceed $2,000, you can reduce the monthly instalment payment by repaying the upgrading cost over a maximum repayment period of 25 years.

You and your co-owners, if any, need to personally visit your flat’s managing HDB Branch with your Identity Cards and documentary proof of your latest combined household income to apply for assistance.

With the extension of the repayment period, the monthly instalment that you need to pay will be reduced accordingly. Please see the following example:

  • Under this scheme, Mr A has opted to pay his upgrading cost of $8,000 over 10 years
  • At the current concessionary compound interest rate of 2.6%, his monthly instalment is $76
  • Assuming he has already paid for 3 years, his remaining cost is $6,000
  • If he now applies to extend the repayment period to 25 years, the balance number of years is 22 years

Based on the interest rate of 2.6%, his monthly upgrading instalment will be $30, or $6,000 over 22 years

Flat owners aged 55 and above

If you and your co-owners, if any, are aged 55 and above, your upgrading cost payment can be deferred with interest until any of the following conditions are met, subject to our approval:

  • The flat is sold
  • The ownership of the flat is transferred to another owner

You and your co-owners must

  • first use your CPF savings, if any, above the CPF Retirement Sum, to pay the upgrading cost. Any remaining amount with interest will then be deferred.
  • personally visit your flat's managing HDB Branch with your Identity Cards to apply for the deferment.

Flat owners in financial hardship

Based on the merits of each case, we may allow you to defer your payment with interest. There are 3 possible options, subject to our approval:

  • Deferment for a year, subject to a yearly review
  • Deferment till the flat is sold
  • Deferment till the ownership of the flat is transferred to another owner

You and your co-owners, if any, need to personally visit your flat’s managing HDB Branch with your Identity Cards and appropriate documentary proof to apply for the deferment.