More help for first-time buyers

SINGAPORE — Starting from the next Build-to-Order (BTO) launch next month, lower- and middle-income first-time buyers can enjoy a bigger Special CPF Housing Grant (SHG) and a higher SHG income ceiling of S$8,500.

The maximum SHG amount will be doubled, from S$20,000 to S$40,000. Households earning more than S$6,500 and up to S$8,000, which are newly eligible for this grant, will get S$5,000 to S$20,000, depending on their income.

Together with the existing Additional CPF Housing Grant of up to S$40,000, low-income first-time buyers could receive up to S$80,000 in grants.

The changes were first announced by Prime Minister Lee Hsien Loong in Sunday’s National Day Rally, where he pledged more help for the low-income to own homes.

With the enhancements, a household earning S$1,000 that buys a two-room flat at S$75,000 — which is on the lower end of the price range — may receive a total grant amount that exceeds 95 per cent of the selling price. In such a case, the buyer would need to pay 5 per cent of the flat price using cash or their Central Provident Fund (CPF). The excess grant amount can be used to pay for optional items such as flooring, or it can go into the CPF Special Account (SA) or Retirement Account and Medisave Account (MA).

If the flat is subsequently sold, the first S$60,000 of the grant will be credited to the buyer’s CPF Ordinary Account. Additional grants will be credited to his CPF SA and MA.