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Enhanced CPF Housing Grant (EHG): Before and After

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You may wonder why there was a need to streamline two existing housing grants. Recently, the all-new Enhanced CPF Housing Grant (EHG) replaced Additional CPF Housing Grant (AHG) and Special CPF Housing Grant (SHG) from 11 September 2019.

Since EHG’s implementation, reports have claimed that the new grant was one of the reasons why there was an increased number of flats sold in October 2019.

What are the Changes in Grant Eligibility Conditions after EHG?

1. No Restrictions on Flat Type and Location

Before:

If you are a first-time applicant and your average gross monthly household income for the past 12 months before your flat application is $5,000, you are eligible for either AHG or SHG.

If you were to buy a 3-room flat in Toa Payoh since it is a mature estate, near your workplace and where you can easily access other parts of the island, you can’t.

Both AHG and SHG have restrictions on flat types and location. You can only buy a flat in non-mature estates.

Now:

If you are a first-time applicant and your average gross monthly household income for the past 12 months before your flat application is $5,000, you are eligible for EHG.

If you wished to buy a 3-room flat in Tampines since it is a mature estate – known as the “Orchard Road” of the East and where you can easily access Changi Airport – you can!

enhanced-cpf-housing-grants-ehg-and-after-no-restrictions

2. First-Timer Applicants Can Buy Older Flats

Before:

If you are a first-timer applicant planning to buy a resale flat in Sembawang with 20 years remaining lease, you can’t.

Now:

First-time homebuyers can buy a resale unit in Bukit Merah with 20 years remaining lease. To qualify for EHG, the flat’s remaining lease must be 20 years or more, so the lease is sufficient to cover the youngest buyer and spouse/ fianc√©(e) to the age of 95. Otherwise, the EHG will be pro-rated.

enhanced-cpf-housing-grants-ehg-and-after-proposal

3. More First-Time Applicants are Eligible

Before:

If your average gross monthly household income for the past 12 months before your flat application is $9,000, you do not qualify for AHG or SHG.

AHG’s income ceiling is $5,000 and SHG’s income ceiling is $8,500.

Now:

Families with an average gross monthly household income of up to $9,000 can receive housing subsidies from EHG.

This change gives more citizen households access to affordable public housing albeit no specific numbers are available yet on how many more families will benefit from the higher income ceiling. Nonetheless, the 18% rise in the number of flat transactions in October 2019 alone is a promising start.

Ultimately, grant amounts will depend on household incomes, with families on lower wages getting higher grants, even for resale flats in mature estates. This enhancement aims to assist lower to upper-middle-income applicants.

Wonder if you qualify for EHG?

Here’s a recap of EHG Eligibility Conditions:

Factors Enhanced CPF Housing Grant
Income Ceiling $9,000
Flat’s Remaining Lease 20 years or more
Grant Amount Up to $80,000
Eligible Flats New or resale flat. No restrictions on flat type and location.
Previous housing subsidy All must be First-timer Applicants:

  • You
  • Other co-applicants
  • Essential occupiers
Employment At least 1 of the applicants must have worked continuously for the 12 months prior to the flat application and still be working at the point of the flat application.

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While the Information is considered to be true and correct at the date of publication, changes in circumstances after the time of publication may impact on the accuracy of the Information. The Information may change without notice and Ohmyhome is not in any way liable for the accuracy of any information printed and stored or in any way interpreted and used by a user.

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