Written Answer by Ministry of National Development on Additional Housing Grant
Apr 4, 2016
Er Dr Lee Bee Wah: To ask the Minister for National Development whether the Ministry will be reviewing the Additional Housing Grant which was last enhanced in 2009.
Answer:
The Additional CPF Housing Grant (AHG) Scheme was introduced in March 2006 to help low-income families own their first home. The AHG can be used to buy a new flat from HDB or a resale flat from the open market.
We have enhanced the AHG twice – first in August 2007 and then in February 2009, to benefit more households and to increase the subsidy amount. Today, first-timers earning up to $5,000 a month can apply for the AHG of up to $40,000. Since the Scheme was introduced, $1.6 billion has been given out to more than 83,000 households. There are no immediate plans to further enhance the AHG Scheme.
On top of the AHG, first-timers buying a new flat can also receive the Special CPF Housing Grant (SHG). We recently enhanced the SHG in Aug 2015 to include households earning up to $8,500, and doubled the maximum grant quantum to $40,000. This means that eligible first-timer families can now receive up to $80,000 in housing grants when they buy a new flat from HDB.
Meanwhile, we also introduced the Proximity Housing Grant (PHG) of $20,000 in Aug 2015 to help families buying a resale flat live closer to their parents or married child for mutual care and support. Together with the AHG and the CPF Housing Grant of $30,000, eligible first-timer families can now receive a total of $90,000 in housing grants when they buy a resale flat.
We will continue to ensure that public housing remains affordable, and are prepared to do more if necessary.