2. Additional CPF Housing Grant (AHG)
3. Top Up Grant
4. Singles Grant
On the Family Grant, this grant is a financial assistance by the Government to 1st-timer flat buyers (who have not enjoyed any housing subsidies).. They can apply for CPF Housing Grant when they buy resale flat or a flat under the Design, Build and Sell Scheme.
Current CPF Housing Grant is $30,000. Families who buy flats to live near their parents can apply for a higher grant of $40,000. Note the grant is given to Singapore Citizen who is not a bankrupt and is not below 21 years of age.
A first timer is defined as one who is not an owner of a subsidised flat (bought directly from HDB) or a resale flat bought with CPF grant, or one who has never sold a subsidised flat. A first timer citizen with a spouse who is a second timer can apply for half the grant amount, if the family meets the eligibility conditions.
The gross monthly household income must not exceed $8000. If the family is extended, it must not be above $12,000.
First timer household with an average monthly income not exceeding $3000 in the past 2 years may also apply for the Additional CPF Housing Grant (AHG) .
The applicants cannot be owners of any private residential property (HUDC and/or Executive Condo.), house, land (local or overseas) or have disposed of such within 30 months before the applications. (i.e within 2 and a half years)
One can purchase either a 2 room, 3 room , 4 room , 5 room Executive Flat in the open market. A grant can be requested if the purchase is for Conversion Schemed adjoining 3 room or smaller flat.
On the Additional CPF Housing Grant:
For people having Average Monthly Income over the last 2 years of
$1500 (or less): Additional CPF :$20,000
$1501-$2000: Additional CPF :$15,000
$2001-$2500: Additional CPF :$10,000
$2501-$3000: Additional CPF :$5000
To qualify:
Applicants must have at least one of the flat buyers who is working continously for 2 years, have an average household income of $3000 or less in that same period.
Like the existing CPF Housing Grant, the AHG can only be used as capital payment for teh purchase of the flat. It cannot be used to offset the cash payment where the declared resale price exceeds the market valuation. Neither can it be used to pay the monthly mortgage loan instalments.
On the Top-Up Grant
Again like before: applicants must have an average household income of $3000 or less in the past 2 years.
Use of Grant:
One can apply to top-up the Singles Grant to Family Grant if you wish to retain it as your matrimonial home. The Top-Up Grant shall be first used for repayment of mortgage arrears, if any. If you have obtained a loan from a bank/ financial institution, you may use the Top-Up for payment towards mortgage arrears, lump sum payments or monthly instalments.
The Top-Up can be used to pay towards the purchase of the resale flat or reduce the mortgage loans. Hence if one does not have enough CPF savings, the grant can be used to pay for the initial payment.
If you are buying the resale flat with a bank loan, the Top-Up can be treated as part of your CPF fund. It can be used to pay for the CPF portion of the initial payment towards the purchase of the resale flat.
The initial payment in CPF funds and cash for buying resale with bank loans:
5% Cash, 5 % CPF (Inclusive of Housing Grants), 90% Bank Loan
Note:
The cash payment is paid over and above that of the cash-over-valuation. (Case where the transacted price is above the market valuation) .Resale flat buyers must pay the cash-over-valuation in cash.
The Top Up Grant is the difference between the Prevailing Family Grant and the Singles Grant.
(You must be within 2 km of your parents' flat)
Example :
Married Couple: Spouse A and B requesting the Top-Up Grant wherein A has already received a Singles Grant of $11,000 previously and the prevailing Basic Family Grant of $30,000.
Both are Singapore Citizens and are listed as owners or applicants:
Previous Singles Grant Amount $11,000
Basic Family Grant $30,000
Top Up $4,000
Spouse B $15,000
Total : $19,000
Refer to Site for more examples.
On Singles Grant:
One needs to be a Singapore Citizen and at least 35 of age. You should be at least 21 if you are buying a resale flat under the Non-Citizen Spouse Scheme. Gross Monthly Household income not more than $3000 for Single Singapore Citizen Scheme and not more than $8000 for other Schemes.
Amount of Grant:
Singles Grant of $11,000, Joint Singles Grant of $22,000
One has to occupy the flat for 5 years before being able to sell in the open market or invest in private residential property. The idea is to save up first, while living in a flat and then using the extra cash to invest in properties later on. Whatever the case, you have at your disposal: $10,000 to $40,000 already if you take up any of the grants mentioned earlier.
Example: A typical flat nowadays costs around $250, 000. If a family grant of $30,000 is taken, and assuming 2 working adults (Spouse A and Spouse B), this should work out to:
Cost of flat in reasonable good area: $250,000.
Family Grant: $30,000
Left: $220,000
Assuming 90% bank loan: loan of $198000 over 30 years ,
Hence 5% CPF and 5 % cash works out to be $11000 CPF and $11000 CASH. Remember that this is to be divided by 2 working adults. Hence:
$5500 CPF and $5500 Cash needed to be forked out equally between husbands and wife.
This should be pretty affordable for anyone who has been working for quite some time! One can choose to rent out a room or so to help with the finances. Alternatively to confirm, click on this to check with the on-line calculator on the monthly instalments.
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