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SINGAPORE: Applying for a custom built apartment (BTO) had always been the plan for 26-year-old Mr. Toh Jin Ann and his girlfriend, Ms. Jaslin Chong, who have been dating for four years.
In late 2019, they settled on a BTO launch in Tengah, with the intention of getting a five-bedroom unit so Toh’s parents could move in with them. But finances were a concern for the young couple.
“Because she was working part-time and I was still studying when we applied for the BTO, the down payment was our biggest concern,” said Toh, who graduated last year.
Those concerns were alleviated when they received S $ 80,000 in grants under the CPF Improved Housing Grant (EHG) from the Housing and Development Board (HDB). That is the maximum amount of the grant.
“We could use it to solve the down payment problem and it really made us feel more comfortable. We don’t have to worry so much about money, ”he told CNA.
They are among HDB’s roughly 15,600 first-time floor buyers who have benefited from the EHG, under which close to S $ 500 million has been disbursed, HDB said in a press release on Sunday (February 21).
The EHG, introduced in September 2019, simplified previous housing grants and came with higher income ceilings.
It is available to eligible first-time buyers regardless of whether they are purchasing a new or resale apartment, with no restrictions on the type of apartment and location.
READ: Higher Income Ceilings, HDB Apartment Buyers Improved Housing Grant
From September 11, 2019, to December 31, 2020, about 7,700 new households purchased new flooring in the various sales exercises requested for the EHG, HDB said.
Around S $ 270 million in donations have been disbursed to these households.
HDB added that not all EHG requests have been processed. This is because applications are made by flat selection, but the selection exercises for the August and November 2020 sales are still ongoing.
BUY RESALE APARTMENTS
In the same period, around 8,300 first-time households that purchased a resale apartment applied for the EHG, HDB noted.
About S $ 226 million in grants have been disbursed to approximately 7,900 households, with the remaining applicants obtaining the grant once their resale transactions are completed, the Housing Board said.
He added that in conjunction with the EHG, eligible buyers can apply for CPF housing grants of up to S $ 50,000 and neighborhood housing grants (PHG) of up to S $ 30,000.
Logistics manager Azhar Kamsari, 36, and his wife Mdm Nurhayati Zulfikri did just that.
The first-time family bought a four-bedroom resale apartment in Woodlands, near Mdm Nurhayati’s parents’ home.
Mr. Azhar Kamsari with his wife, Mdm Nurhayati Zulfikri, and their son. (Photo: HDB)
They received S $ 115,000 in housing grants, including S $ 45,000 from the EHG, S $ 50,000 from the Family Grant and S $ 20,000 from the PHG, a grant that encourages families to stay with or near their parents or children.
“We were surprised that there were so many grants,” Azhar said.
“At first I was thinking, ‘How am I going to go for a four-bedroom?’ … But after the deductions, (the cost was) really good, ”he said, adding that the final sum they had to pay was approximately S $ 221,000.
The PHG was also an advantage, and Mr. Azhar joked about the advantages of living close to family. “My mother-in-law is very strict … so if my son is not behaving, I can put him in his house, as if it were a training ground for him.”
PROXIMITY HOUSING SCHOLARSHIPS
Including Mr. Azhar and his wife, about 4,700 first-time households have benefited from both the EHG and the PHG as of December 31.
“The PHG is available to all home buyers regardless of their family income, privately owned property or if they have enjoyed housing subsidies before, when they purchase a resale apartment with or near their parents / children,” said HDB.
All Singaporeans are eligible for the PHG one time.
HDB said that since the grant’s introduction in August 2015, about 40,900 households have applied for it.
Of these, about 40,200 applications were successful and a total of S $ 748 million was disbursed to these households.
He added that of the households that applied, 78 percent are families, while the rest are single.
READ: More HDB households, but average size shrunk, with fewer multi-generational families living together
Furthermore, 55 percent of them bought flats on immature farms, while the rest chose mature farms.
To get an idea of the ratio of PHG applicants among buyers of resale apartments, HDB said these 40,900 homes represent about a third of the 121,600 registered resale applications in a similar period.
HDB said the grant complements other schemes to help Singaporeans buy new flats with or near their parents or children.
“Home buyers who wish to verify their grant eligibility can use the personalized financial calculators in the new HDB Flat Portal, which was launched last month,” said the Housing Board.
