This grant is usually meant for the lower income groups with a steady household income. It provides these families with financial assistance in situations when they want to buy a subsidized HDB flat. An applicant who qualifies under its guidelines is given this grant in addition to the existing housing subsidies. Thus, it helps families with lower income to get a bigger housing subsidy for buying an HDB home.

To qualify for this grant, which is only given once to a family, an individual should be eligible to meet certain criteria:

Family Nucleus: The applicant’s family must comprise his/ her spouse or fiancĂ©/ fiancĂ©e or parents and siblings or children under his/ her legal custody (in case the applicant is widowed or divorced).

Special Condition: The applicant must submit a copy of his/ her marriage certificate to the HDB on or before taking possession of the flat.

Income Ceiling: The average gross household income of the applicants who have booked their flats on or after 2007 (24 August) should not be more than SGD 4,000 per month.

Employment Status: The applicant or the co-applicants should be in continuous employment for two years before applying for a loan to buy an HDB.

Additional CPF Housing Grants
Apart from these, the amount of AHG (Additional CPF Housing Grants) that applicants are eligible for are based on their average monthly household income for the past two years. The AHG is given only to the citizens of Singapore and not to their spouses who may be a Permanent Resident of Singapore. In case of sole applicants, a full grant is given while in case of joint applications, half of the grant is provided to each applicant. When joint applications do not involve a husband and a wife (e.g. parents, married siblings or children), the grant is given to any one eligible applicant per household.

AHG can be used only to reduce the mortgage loan amount or as a capital payment or to make initial payments for purchasing a flat.

Purchasing HDB flats in Singapore is a long term financial commitment involving careful financial planning. Therefore, it is recommended that a buyer should keep all options open before purchasing a flat.