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More than 18,000 households who bought their first HDB flat received the Enhanced CPF Housing Grant (EHG) in 2022, said the Housing and Development Board.

The total quantum of Enhanced CPF Housing Grant that was disbursed in 2022 amounted to S$564 million.

This marks a 13 per cent increase from the EHG disbursed in 2021 and it is the highest amount distributed by HDB since the introduction of the grant in September 2019.

For the uninitiated, EHG serves as a replacement for the Additional CPF Housing Grant and the Special CPF Housing Grant, removing the restrictions on the choice of flat type and location that was previously put in place for first-time buyers.

Eligible first-time buyers can receive up to S$80,000 of EHG if their average monthly household income does not exceed S$9,000 a month.

For eligible singles aged 35 and above who are looking to purchase their first home, they can enjoy an EHG of up to S$40,000 if they earn less than S$4,500 a month.

Benefitting 49,500 first-timer households since 2019

The number of households who received the Enhanced CPF Housing Grant has increased over the years, from 14,000 households in 2020 to 16,000 households in 2021, and finally 18,000 households in 2022. This, said HDB, is in line in line with the higher sales volume of HDB flats and increasing number of eligible homebuyers.

In total, HDB disbursed S$1.56 billion in Enhanced CPF Housing Grants from September 2019 to December 2022 to 49,500 first-timer households.

About 57.4 per cent of them bought a flat from HDB from various sales modes, including Build-to-Order and Sale of Balance Flats, while the rest purchased a resale flat.

With the EHG and market discounts (discounts that HDB uses to price flats below market value), the vast majority of first-time buyers who purchased new flats were able to use 25 per cent or less of their monthly income to service their HDB loan instalment payments, with little or no cash outlay.

Ensure public housing remains affordable & accessible

Besides EHG, first-timers buying a resale flat may also be eligible to receive the following housing grants:

• Proximity Housing Grant, which is for families and eligible singles buying a resale flat to live with or within 4km of their parents, child, or children
• CPF Housing Grant, which is for families and eligible singles buying a new or resale HDB flat

Together with the EHG, eligible families can receive up to S$190,000 in housing grants, whereas singles can receive up to S$95,000.

Separately, from May 9, 2023, flat buyers can check their eligibility for a new or resale flat purchase, CPF housing grants (including the grant amount), and the application for an HDB housing loan (including the loan amount) upfront via the new HDB Flat Eligibility (HFE) letter.

For second-time buyers, their HFE letter will also inform them of the resale, levy, or premium that they will have to pay upon the purchase of another subsidised flat from HDB.

Read more about the HFE letter and how to apply for one here:

Top image via Danist Soh/Unsplash