Singapore’s Central Provident Fund (CPF) Housing Grants are pivotal in helping families make home ownership more accessible and affordable. With escalating property prices and growing demand for public housing, these grants serve as crucial financial support, especially for first-time buyers and families looking to settle into their own homes. However, navigating the landscape of CPF Housing Grants can be complex, with eligibility criteria, application steps, and varying grant amounts based on household income and housing type.
This comprehensive guide aims to demystify the CPF Housing Grant process for families in Singapore. Whether you are eyeing a Build-To-Order (BTO) flat or a resale HDB unit, this article will equip you with the knowledge to understand and apply for the most appropriate CPF Housing Grants for your needs.
Understanding CPF Housing Grants
CPF Housing Grants are essentially subsidies from the government to help Singaporean families afford public housing. These grants are credited to the applicant’s CPF Ordinary Account (OA) and can be used to offset the purchase price of a flat or reduce the housing loan amount.
There are three main types of CPF Housing Grants for families:
- Enhanced CPF Housing Grant (EHG)
- Family Grant
- Proximity Housing Grant (PHG)
Each grant targets a different housing need and has its own set of eligibility requirements. In many cases, families may qualify for more than one grant, allowing them to combine multiple subsidies.
Enhanced CPF Housing Grant (EHG)
Purpose: To provide income-based support for first-timer families buying their first HDB flat, whether new (BTO) or resale.
Key Eligibility Criteria:
- At least one applicant must be employed continuously for 12 months before application.
- Gross monthly household income must not exceed $9,000.
- Applicants must not have owned or sold any property in the 30 months prior to application.
- Flat must have a lease that lasts at least 20 years and covers the youngest buyer until age 95.
Grant Amount:
Ranges from $5,000 to $80,000, depending on household income. The lower the income, the higher the grant amount.
| Household Income (Monthly) | Grant Amount |
|---|---|
| $1,500 or less | $80,000 |
| $2,000 | $75,000 |
| $3,000 | $65,000 |
| $4,000 | $55,000 |
| $5,000 | $45,000 |
| $6,000 | $35,000 |
| $7,000 | $25,000 |
| $8,000 | $15,000 |
| $9,000 | $5,000 |
Use Case: Ideal for families who are first-time buyers and have a modest household income. Particularly beneficial when combined with Family Grant and/or PHG.
Family Grant
Purpose: To help first-timer families buy resale HDB flats.
Key Eligibility Criteria:
- At least one Singapore Citizen (SC) in the household.
- Buying a resale flat (not a new BTO).
- Gross monthly household income ceiling: $14,000 (or $21,000 for extended families).
- Both spouses must be first-timer applicants or one first-timer and the other a second-timer not previously granted housing subsidies.
Grant Amount:
- $80,000 for 2- to 4-room flats
- $50,000 for 5-room or larger flats
For households with one Singapore Citizen and one Permanent Resident (SC-SPR household), the grant is $10,000 less (e.g., $70,000 instead of $80,000).
Use Case: Best suited for families opting for a resale HDB unit with the flexibility of location, flat size, or faster move-in timeline.
Proximity Housing Grant (PHG)
Purpose: To encourage families to live with or near their parents or children, thereby promoting mutual support and care.
Key Eligibility Criteria:
- Buying a resale flat within 4km of your parents’ or children’s residence, or living together.
- At least one buyer must be a Singapore Citizen.
- No income ceiling, making it the most accessible grant.
Grant Amount:
- $30,000 if living with parents or children
- $20,000 if living within 4km
This grant is stackable with the Family Grant and/or EHG.
Use Case: Ideal for multigenerational families or those who wish to benefit from shared caregiving arrangements and closer family ties.
How to Apply for CPF Housing Grants
Step-by-Step Process:
Step 1: Confirm Eligibility
Check all grant criteria against your household income, citizenship status, employment history, and flat type.
Step 2: Submit Application
- For BTO flats, apply via the HDB portal during the flat application process. Grant assessment is done automatically.
- For resale flats, apply for the grants when submitting the resale application via the HDB Resale Portal.
Step 3: Prepare Required Document
Typical documents include:
- Income proof (CPF contributions or payslips)
- NRICs of all applicants
- Marriage certificate (for couples)
- Proof of address for parents/children (for PHG)
Step 4: Await Grant Approval
Approval and disbursement typically occur before key collection or resale completion.
Using CPF Grants Wisely
CPF Housing Grants are not handed out as cash; instead, they are credited into the CPF OA of applicants. This amount reduces the housing loan required or offsets the purchase price. However, when the property is sold in future, the grant amount (with accrued interest) must be returned to the CPF account.
Strategic Tips:
- Use grants to reduce your loan, not extend your budget.
- Be cautious of overleveraging—grants reduce upfront costs, but ongoing mortgage payments remain your responsibility.
- Consider lease duration carefully, especially when purchasing older resale flats.
Common Pitfalls and Misconceptions
Myth: I can use the CPF Housing Grant however I like.
Truth: Grants are credited to your CPF OA and strictly used for housing-related expenses only.
Myth: I will receive the full grant amount immediately.
Truth: You will only receive what you are eligible for, based on income and other conditions, and this is disbursed directly to CPF, not as cash.
Myth: I can apply for all three grants automatically.
Truth: Grants must be applied under the right housing scheme (BTO or resale) and under the correct application process.
Grant Scenarios for Families
Let’s examine a few real-world illustrations:
Scenario 1: First-Timer Young Couple Buying a BTO Flat
- Monthly combined income: $4,000
- Flat: 4-room BTO in Sengkang
- Eligible Grant: EHG of $55,000
Scenario 2: Married Couple Buying a Resale Flat Near Parents
- Monthly income: $8,500
- Flat: 4-room resale in Jurong East, 2.5km from wife’s parents
- Eligible Grants:
- Family Grant: $80,000
- PHG (near parents): $20,000
- EHG: $15,000
- Total Grants: $115,000
Scenario 3: Extended Family Living Together
- Parents + adult children
- Monthly income: $14,500
- Flat: 5-room resale, multi-generational living
- Eligible Grants:
- Family Grant (extended family): $80,000
- PHG (living together): $30,000
- Not eligible for EHG (due to income)
- Total Grants: $110,000
Changes in 2024-2025
Recent updates have made CPF grants more inclusive:
- Higher income ceilings allow more families to qualify.
- Streamlined applications via the HDB Resale Portal improve the process.
- Continued policy alignment with pro-family values, encouraging multigenerational living.
Always check the HDB website or consult a HDB officer for the latest eligibility criteria and policies.
Conclusion
CPF Housing Grants are more than just subsidies—they are enablers of homeownership and family stability. For families in Singapore, these grants can be a stepping stone to achieving the dream of a stable and secure home.
That said, applying for the right grant—and using it wisely—requires a solid understanding of your financial situation, housing preferences, and long-term plans. By staying informed and planning carefully, you can maximise these grants to build not just a home, but a future filled with security and togetherness.
