The Special CPF Housing Grant (SHG) increases, which were announced by Prime Minister Lee Hsien Loong, will take effect from the 1st Build-To-Order (BTO) exercise this coming September.
The changes for household income ceilings for the SHG will be raised from $6500 to $8500, and the maximum grant amount will be doubled from $20,000 to $40,000. With the changes, more than two thirds of Singaporeans would be eligible for the SHG with the increased ceiling.
For example, before the changes, a first-time buyer earning $4,000 a month and planning to buy a four-room flat that costs S$295,000 in a non-mature estate would receive an Additional Housing Grant of S$15,000. With the new changes to the SHG, the family will also receive a grant of S$40,000, up from the previous S$20,000. As such, the family will receive a total of S$55,000 in grants and they will pay S$240,000 for the flat, after deducting the grants.
For another family who earns S$1,000 a month and buys a two-room flat that costs S$110,000, they will receive an Additional Housing Grant of S$40,000. With the increased SHG, the family will also receive another S$40,000, bringing the total amount of grants received to S$80,000. After deducting grants, the family has to pay S$30,000 for the flat.
Singles purchasing HDB flats will also benefit from the changes. The income ceiling for singles to qualify for the SHG has been raised from $1000 to $4250. The maximum SHG grant amount for singles would also be doubled from $10,000 to $20,000.