Enhanced CPF Housing Grant offers more Affordable Housing Options to First-Time Homebuyers

Feb 20, 2017

Minister for Finance, Mr Heng Swee Keat, announced in the Budget Statement in Parliament today that the Government will increase the CPF Housing Grant for first-timer families buying resale HDB flats. This enhancement builds on the Government’s existing efforts to provide more affordable housing options to homebuyers.

Enhancement of the CPF Housing Grant for First-Timer Families

Currently, first-timer families buying resale HDB flats can enjoy up to $90,000 of housing grants, comprising the CPF Housing Grant ($30,000), Additional CPF Housing Grant (up to $40,000) and Proximity Housing Grant ($20,000).

From today, MND will enhance the CPF Housing Grant to help young couples buy a resale flat, with more help given to those buying smaller flats to encourage prudent housing choices. The grant quantum will be increased:

(a) From $30,000 to $50,000, for first-timer families buying a 4-room or smaller resale flat; and

(b) From $30,000 to $40,000, for first-timer families buying a 5-room or larger resale flat.

Together with the Additional CPF Housing Grant and Proximity Housing Grant, eligible first-timer families buying resale flats can now enjoy up to $110,000 in housing grants. Please see Annex A for details.

The enhanced CPF Housing Grant will provide first-time homebuyers with more affordable housing options. Besides buying a new Build-to-Order (BTO) flat from HDB, young couples can also choose from a wide range of resale flats in the open market. In particular, the enhanced CPF Housing Grant will help young couples who have a strong preference for a specific location (e.g. to live near their parents or their workplace), or who wish to move into their own home sooner to start a family (instead of waiting for a BTO flat).

The enhancement of the CPF Housing Grant will complement our other efforts to help young families get their first home sooner. More details will be announced by MND at the Committee of Supply 2017 debate.

Enhancements Extended to Singles

Similarly, first-timer singles buying resale flats will also benefit from enhancements to the CPF Housing Grant. The grant quantum, which is half that for families, will be increased:

(a) From $15,000 to $25,000, for those buying a 4-room or smaller resale flat; and
(b) From $15,000 to $20,000, for those buying a 5-room resale flat.

Together with the existing Additional CPF Housing Grant (up to $20,000) and Proximity Housing Grant ($10,000), eligible first-timer singles buying resale flats can enjoy up to $55,000 in housing grants. Please see Annex A for details.

Implementation

The enhancements to the CPF Housing Grant for families and singles are summarised in Table 1:

The enhanced CPF Housing Grant will apply to eligible resale flat applications received on or after 3.30 pm, 20 February 2017. For enquiries, the public can contact HDB :

• Sales/Resale Customer Service Line : 1800-866-3066
• Branch Service Line : 1800-225-5432