There are twelve types of CPF Housing Grant available for public flat buyers. On this post, I will be narrowing down on Grants available to Singles in Singapore. If you are a Single and a first time buyer, taking advantage of the HDB Grants should be a key consideration while planning the purchase of your first home.
In this comprehensive guide, I will explore the grant's origin, eligibility criteria, application process, benefits and its impact on Singles who are starting their property journey. In preparing for your financial calculation, be sure to always check on the Grants that is available for you.
Housing affordability is a common social topic among Singaporean who wish to buy their first home. As houses become increasingly expensive for couples, it is even more so for singles who would like to own a property for the first time in Singapore. The government has implemented various schemes and grants to better facilitate the purchase of public housing and the HDB Singles Grant have been a game changer for many Singles.
The Housing & Development Board (HDB) Singles Grant was introduced in 2013 as part of a broader effort by the Singaporean government to address the housing needs of single citizens. Prior to its inception, singles were often left with limited public housing options, as most government housing schemes catered primarily to married couples and families. In recent years, the government saw the shift in population dynamics and evolving demographics within our society. As the numbers of single individuals rise, there was a need to extend support to this segment of the population.
There are three Grants available to Singles. CPF Housing Grant for Resale Flat, Enhanced CPF Housing Grant and Proximity Housing Grant (Singles).
CPF Housing Grant for Resale Flat (First-Time Singles)
To be eligible for the HDB Singles Grant, applicants must meet certain criteria:
Applicants must be a Singaporean citizens. Permanent residents (PRs) and foreigners are not eligible.
Applicants must be at least 35 years old.
The Singles Grant is subject to an income ceiling. The gross monthly income must not exceed $7,000/- and are buying a 5-room or smaller resale flat.
First- timers (who have not taken a housing subsidy before) buying a resale flat. Buying 5-room or Larger Resale Flat
$25,000 in CPF Housing Grant
Buying 2-room to 4-room
Resale Flat $40,000 in CPF Housing Grant
Joint Singles Scheme
Buying 5-room or Larger Resale Flat Singles will get $25,000 * 2 in CPF Housing Grant
Buying 2-room to 4-room Resale Flat
Singles will get $40,000 * 2 in CPF Housing Grant
Enhanced CPF Housing Grant
The Enhanced CPF Housing Grant was introduced in recent years and is designed to make home ownership more affordable , particularly for lower and middle-income household. The EHG is subjected to income ceiling and the type of flat you are buying. Lower income individual will receive a higher grant through EHG, making home ownership more accessible to everybody.
Proximity Housing Grant (Singles)
When buying a resale flat near parents or staying with parents. Singles will get a Proximity Housing Grant of $10,000/- (living within 4 kilometre to parents' place) or $15,000/- (living with parents). This Grant is not subjected to an income ceiling and all individual will receive this grant once.
Public Scheme and Joint Single Scheme
ˇRecently updated in 2021, Singles have two options under the Single Scheme. Under the Public Scheme, single applicants can purchase a new or resale HDB flat in the open market like any other eligible HDB buyer. Under the Joint Singles Scheme, two singles can now purchase a flat without the need to form a family nucleus. If eligible, two Singles aged 35 or above will be able to apply for any resale flat type except for the 3-Generation Flat. Both Schemes will be subjected to an income ceiling.
How do you apply?
With the start of HDB Flat Eligibility (HFE) letter (introduced in May this year to streamlined the home buying process and making it more friendly for its users). Through My Flat Dashboard in the HDB portal; Buyers can instantly find out which grant they are eligible for by just doing the preliminary HFE check. These grants if eligible, will be deposited into the buyers CPF account to reduce the mortgage amount for the purchase of the first flat.
What happens to the CPF Grants if home owners decide to sell the house in the future?
Many first time buyers have concerns on these grants when they decide to sell the house in future. Do they have to return back to CPF (Central Provident Fund) or HDB (Housing Development Board)? These grants will be part of the sales proceeds in future and be refunded back to the seller's Ordinary and Special Account respectively.
What are the negative impact if any with the implementation of these Grants? CPF Housing Grants for First-Time Singles
As there are more Singaporeans being able to enter the resale market, How will this help the market stabilize? The introduction of this grant may have a negative impact on the market as the increased numbers in buyers may attract speculators looking to profit from the rising property prices. Speculation can contribute to price volatility and may not benefit genuine first time buyers.
On the positive side, providing Grants for Singles have enhanced living conditions through better housing options and quality of living spaces. The HDB Singles Grant is a vital step towards addressing the housing needs of single individuals in Singapore. It not only promotes homeownership but also contributes to social inclusivity, economic stability, and an improved quality of life. While there are challenges and considerations to navigate around, the grant remains a valuable tool for eligible singles to secure a home. As Singapore's housing landscape continues to evolve, the HDB Singles Grant stands as a beacon of hope and opportunity for those seeking the dream of homeownership.
Understanding buying a property in Singapore.
Through my meeting and consultation with first time home-buyers, I have come to realize that many are not aware on how to benefit from the
CPF Housing Grants. Most buyers are confused and unsure which Grant they are eligible for. Some may have different circumstances and needed to forgo their first time Grant due to personal responsibilities. As a realtor, I would advise before applying for a flat to consult a professional before making any decision. Hiring the right Real Estate Agent can help you save time and money. They will also help to prepare and plan your financial calculations as part of the planning process. There is just so much going into a first purchase. From the initial financial calculation, to picking out the right flat that meet your needs, and to assist you on your exit strategy. A good real estate agent will assist you every step of the way, starting from viewing, negotiation, documentation, application/submission and finally to completion. We will also provide an in depth analysis on the property market so you can make a better decision.
If you like what you are reading and wish to know more on the professional consultation service that is available for you, do keep a lookout on my next post. In the meantime, drop me an email or a text @ 8608 4855 to book your consultation and feel free to send in your enquiry via the forum on this website.
Services provided when you engaged a professional Real Estate Agent like myself.
Sale & Purchase Presentation
I will guide you through the entire the buying and selling process, providing you with valuable insight and market trend. Whether you are a first-time buyer, an investor or looking to upgrade, this presentation is your key to making informed decisions in the real estate market.
Home Inspection
Before selling your home and putting it in the market. A pre-sale home inspection will be done together with the sale presentation. Pre-sale inspection can identify potential issues, boost your home's marketability, and instil confidence in potential buyers. I will also address any concerns proactively, set a competitive asking price and streamline the sales process.With this inspection, you are able to maximize your property's value and this will encourage a smoother transaction.
Staging
Staging your property creates a visually appealing and welcoming environment that leaves a positive impression with potential buyers. A well staged property can help buyers envision themselves in the living space creating an emotional connection and can lead to a quicker sale.
Staging also helps to maximize the space and create its own identity to the buyers mind. With staging, photographed property will look better and more appealing in a listing.
Many real estate agents and sellers report that well-staged homes often sell for a higher price than comparable unstaged properties. The increased perceived value can justify a higher asking price.
Marketing, Listing and Financial services is also included when you engaged me as your Real Estate Agent. For more information on services provided; https://www.brownbearproperty.com/about
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About the Realtor
Beyond the world of Real Estate, Ummairah Bakar is also a first time mother. Motherhood, coupled with Real Estate has been a crazy adventure. In the midst of all the chaos, a genuine intention to help more people have emerged. Assisting clients to become home owners and building a long-term portfolio and good relationship has turned into a passion. The objective is simple; to guide and assist genuine clients in achieving their Real Estate Goals.