(Editor's note: An earlier headline on this story erroneously stated the maximum possible obtainable grants for resale flats in mature estates as S$80,000. This has been fixed.)

HDB will implement a new enhanced housing grant for first-time homeowners, and will also raise income ceilings across the board for various HDBs.

This was announced by Minister for National Development Lawrence Wong during the annual HDB Awards on Sept. 10.

In his speech, he stressed the need to have affordable and accessible housing for all Singaporeans. In order to ensure this, Wong highlighted that housing schemes have to be continuously reviewed and updated.

Here's a summary of the two key changes that Wong announced:

Enhanced CPF Housing Grant

A new Enhanced CPF Housing Grant (EHG) of up to S$80,000 will be provided for first-timer families, if their household income is less than S$9,000.

This is provided they buy a flat that can cover them and their spouses to the age of 95.

Eligible families that do not meet this condition may still receive the EHG benefit, but the amount will be pro-rated based on the extent that the remaining lease can cover them to the age of 95.

Eligible first-timer singles aged 35 and above, earning up to S$4,500 a month, will also enjoy an EHG of up to S$40,000, subject to the same conditions.

Replaces the existing grants given

The EHG will replace the existing Additional CPF Housing Grant (AHG) and the Special CPF Housing Grant (SHG).

Previously, first-timer families purchasing a new flat can enjoy both the AHG and the SHG.

The AHG is a grant of up to S$40,000, given to eligible first-time homeowners buying new or resale flats.

The SHG is restricted to purchases of 4-room or smaller new flats in non-mature estates.

The SHG is similar to the AHG, granting up to S$40,000, but is restricted to eligible first-time homeowners buying 4-room or smaller BTO flats in non-mature estates.

The removal of the AHG and SHG in favour of the EHG will effectively streamline the grants that HDB offers, and make it simpler.

With the introduction of the EHG, this means that first-time homeowners seeking the maximum amount of grants are no longer restricted to buying new flats in non-mature estates.

They could possibly purchase resale flats, or five-room flats, and be eligible for a grant of up to S$80,000.

Eligible first-time homeowners buying resale flats can continue to enjoy the CPF Housing Grant, in addition to the EHG.

They will also retain the Proximity Housing Grant of up to S$30,000 for living with or near their parents, as well as a Family Grant of up to S$50,000.

Altogether, first-timer couples buying a resale flats can now receive up to S$160,000 in grants.

HDB will raise income ceilings

Wong also announced several changes to income ceilings for HDBs, in order to provide more households with affordable housing options.

Noting that incomes have risen over the years, Wong announced that the monthly household income ceiling will be increased from S$12,000 to S$14,000 for eligible families to:

1. Buy a flat from HDB;
2. Buy a resale flat on the open market with a CPF Housing Grant; and
3. Get an HDB housing loan for the purchase of a new or resale flat.

The monthly household income ceiling for eligible first-timer singles aged 35 and above will similarly be raised from S$6,000 to S$7,000.

The monthly household income ceiling for citizen households to buy an Executive Condominium (EC) unit from a property developer will also be raised from S$14,000 to S$16,000.

For eligible seniors, the monthly household income ceiling will also be raised from S$12,000 to S$14,000 for them to qualify for:

1. The Lease Buyback Scheme, to monetise their flats;
2. The Silver Housing Bonus, after right-sizing to a 2- to 3-room flat; and
3. The purchase of a 2-room Flexi flat on short lease from HDB.

Changes in place from Sept. 11

Both the EHG and the revised income ceilings will be implemented from Sept. 11.

For existing flat applications received before Sept. 11, HDB clarified that the EHG will not be applied retrospectively.

The HDB August sales exercise was previously pushed back to this month, a move made to ensure that more home buyers will benefit from these changes.

Top image from HDB.