A Complete Guide to CPF Housing Grants for BTO and Resale Flats
 
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A Complete Guide to CPF Housing Grants for BTO and Resale Flats

Ruth Lum
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One of the hottest topics you’d hear from a bunch of millennials or young adults who are looking to settle down: “Should I go for a BTO or a resale flat?”

Whether it’s you and your Significant Other, or hearing a friend grouse about the waiting times of his latest BTO… it’s definitely a topic that we pretty much can’t escape. (Much like all the NS-talk, right girls?!)

Besides HDB housing loans, there are also these CPF loans which are loans dedicated to aid Singaporeans in securing their (mostly) first home.

BTO and Resale Flats

 BTOResale
Waiting Time3-5 yearsASAP
Ave. Price (4-rm flat)$311,000$457,000
RenovationUsually more exp.Usually less exp.
Ave. Size90sqm104sqm
LocationPre-definedYour preference
Lease Period99 yearsShorter than 99-years

1. BTO: Brand new HDB Flats

These are the most common type of flats offered by our government. Mainly built for first time home buyers, they are offered at the lowest entry price possible, which also often leads to heavy demand and often tough to ballot for more popular sites.

  • Non-mature sites (eg. Punggol, Chua Chu Kang): 3 room ~$160,000
  • Mature sites (eg. Toa Payoh, Geylang): 3 room ~$380,000
ProsCons
Brand new as first occupantsNeed to wait 3 to 4 years before moving in
Lowest ever prices land subsidised by govtNeed to stay the MOP (Minimum occupancy) for 5 years
High appreciation potential to re-sellMany restrictions on who you can sell and rent to

2. Resale: Older HDB Flats

These are the next most common type of flats. However, this is on the secondary market, which also means the prices are set by demand and supply accordingly. From one HDB owner to others. It’s a free market and you can use sites like SRX99.co, and PropertyGuru to find your dream home.

  • Non-mature sites (eg. Punggol, Chua Chu Kang): 3 room ~$350,000
  • Mature sites (eg. Toa Payoh, Geylang): 3 room ~$450,000
ProsCons
Can come with some existing furnishingLimited appreciation potential (limited life)
Get to choose your locationsLimited subsidies available
Can move in immediately after purchasePotential re-design needed (e.g hacking, ID)

Grants for BTO Flats

The available grants offered by HDB for the application of BTO flats are pegged to household income. This is so that lower-income households receive more help in securing a home.

Applicants of SBF and ROF flats are also eligible for the grants under BTO. However, if the selected SBF or ROF unit has a low remaining tenure, the grant amounts may be lower.

 BTOResale
Both first time applicantsAdditional CPF Housing Grant (AHG)Family Grant
Special CPF Housing Grant (SHG)Additional CPF Housing Grant (AHG)
One is a first-timer, the other is a second-timerAdditional CPF Housing Grant (Singles)Half Housing Grant
Special CPF Housing Grant (Singles)Additional CPF Housing Grant (AHG)
Both applicants are second-timersStep-Up CPF Housing GrantTop-Up Grant (previously received Singles Grant)
If one applicant is a foreigner (Non-Citizen Spouse Scheme)Additional CPF Housing Grant (Singles)Non-Citizen Spouse Scheme
Special CPF Housing Grant (Singles)
For SC/SPR households with the SPR spouse taking up citizenshipN/ACitizen Top-Up Grant
For applicants buying a resale flat within 4km of their parentsN/AEnhanced Proximity Housing Grant

Case 1: You and your partner are both first-time applicants

  • Additional CPF Housing Grant (AHG) – Up to $40,000 with monthly household income capped at $5,000
  • Special CPF Housing Grant (SHG) – Up to $40,000, with monthly household income capped at $8,500. This grant is only applicable for purchase of 2-room Flexi, 3-room, or 4-room flat in a non-mature estate.

Case 2: One of you is a first-timer and the other a second-timer

The Half-Housing Grant amount is half of the Family Grant that you and your spouse/ spouse-to-be would qualify for if both of you were first-timer applicants.

  • Additional CPF Housing Grant (Singles) – Grant amount of up to $20,000. Half of the average household monthly income for the 12 months before the flat application must not exceed $2,500.
  • Special CPF Housing Grant (SHG) (Singles) – Up to $20,000. To qualify, half of the average monthly household income for the 12 months prior to flat application date must be within $4,250. Only applicable for purchase of four-room and smaller flats in non-mature estates.

Case 3: Both applicants are second-timers

  • Step-Up CPF Housing Grant -$15,000, only for couples who are living in a two-room subsidised flat and wish to apply for a new 3-room flat in a non-mature estate.

Case 4: If one applicant is a foreigner (Non-Citizen Spouse Scheme)

  • Additional CPF Housing Grant (AHG) (Singles) – Grant amount of up to $20,000. Half of the average household monthly income for the 12 months before the flat application must not exceed $2,500.
  • Special CPF Housing Grant (SHG) (Singles) – Up to $20,000. To qualify, half of the average monthly household income for the 12 months prior to flat application date must be within $4,250. Only applicable for purchase of four-room and smaller flats in non-mature estates.

HDB

Grants for Resale Flats

Case 1: You and your partner are both first-time applicants

  • Family Grant – $50,000 for four-room flats or smaller and $40,000 for five-room flats or larger. Monthly household income capped at $12,000 (or $18,000 for extended family applicants).
  • Additional CPF Housing Grant (AHG) – up to $40,000, with monthly household income capped at $5,000.

Case 2: One of you is a first-timer and the other a second-timer

  • Half-Housing Grant – Up to $25,000, monthly household income capped at $12,000 (or $18,000 for extended family applicants).

Case 3: For applicants who have previously received a Singles Grant

  • Top Up Grant

The Top-Up Grant amount is the difference between the Family Grant that you now qualify for, minus the Singles Grant amount that you had previously received.

Only those with monthly household income capped at $12,000 are eligible.

Case 4: For Singapore Citizen/Singapore Permanent Resident (SC/SPR) households with the SPR spouse now obtaining Singapore Citizenship status

Case 5: For applicants buying a resale flat within 4km of their parents (including nearby towns)


Conclusion: Find what fits you best

Purchasing a home is a big decision. Make the right calculations to decide if the financial stress is manageable, and consider if what you are applying for gives you a comfortable repayment amount and duration on top of the grants that you are eligible for.

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About Ruth Lum
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