Raised Income Ceiling and Enhanced Housing Grant for HDB Buyers

3 min read

HDB announced changes to the income ceiling for BTO flats yesterday, along with an enhanced housing grant. Here’s what you need to know:

Raised income ceiling for BTO flats

The income ceiling , for those who don’t know it, is the maximum you can earn before being disqualified from an HDB property; those who bust the income ceiling either have to buy private, or buy a resale unit.

Previously, the income ceiling was $12,000 for buying a BTO flat, and $14,000 for Executive Condominiums (ECs). Starting from today though (11th September 2019), the income ceiling will be $14,000 for BTO flats, and $16,000 for ECs.

For singles, the income ceiling will be raised from $6,000 to $7,000.

Other income ceilings will be raised accordingly

Person carrying a box
The income ceiling for HDB flats is now $14,000…time to buy

Of course, it doesn’t make sense to raise the income ceiling for buyers, but not for other HDB schemes. So the numbers have been raised across the board.

The income cap for the Fresh Start Housing Scheme and Step-Up CPF Housing Grant are now raised from $6,000 to $7,000. The income ceiling for Lease Buyback Scheme and Silver Housing Bonus are also raised from $12,000 to $14,000.

(Other qualifying restrictions for these schemes, such as age, remain unchanged).

New Enhanced Housing Grant (EHG) to replace two previous grants

The new EHG will replace the previous Additional CPF Housing Grant (AHG) and Special CPF Housing Grant (SHG).

The EHG amount ranges from $80,000 for the lowest-income households (income below $1,500 per month), to a cap of $5,000 for those earning between $8,501 to $9,000 a month. Buyers with a household income above $9,000 per month can’t get the EHG.

The grant can be used for both BTO and resale flats; but you can only get the full EHG grant if the lease on the flat can last till you, and your spouse, reach 95 years old. You can still get the EHG if the lease is shorter, but the grant will be pro-rated.

This is not an issue when a brand new flat with a 99-year lease, but it will discourage the purchase of older resale flats by young couples.

One-stop HDB Portal Services Up Next Year

Man using laptop and smartphone
A one-stop HDB portal for both new and resale flats

HDB currently already has a portal for resale flats. Starting next year however, HDB will have a new one-stop portal, which provides details for both BTO flats and resale flats. The portal will allow users to list their flats, and complete the resale transaction online.

Stay tuned, and we’ll get you the inside-look at the new changes. Like us on Facebook for more updates.

What do you think property agents spend too much on? Voice your thoughts in our comments section or on our Facebook community page.

Want to connect with qualified leads? List your property on Singapore’s fastest growing property portal 99.co! Your clients can also access a wide range of tools to calculate your down payments and loan repayments, to help with your presentations.

Looking to sell your property?

Whether your HDB apartment is reaching the end of its Minimum Occupation Period (MOP) or your condo has crossed its Seller Stamp Duty (SSD) window, it is always good to know how much you can potentially gain if you were to list and sell your property. Not only that, you’ll also need to know whether your gains would allow you to right-size to the dream home in the neighbourhood you and your family have been eyeing.

One easy way is to send us a request for a credible and trusted property consultant to reach out to you.

Alternatively, you can jump onto 99.co’s Property Value Tool to get an estimate for free.

If you’re looking for your dream home, be it as a first-time or seasoned homebuyer or seller – say, to upgrade or right-size – you will find it on Singapore’s fastest-growing property portal 99.co.

Meanwhile, if you have an interesting property-related story to share with us, drop us a message here — and we’ll review it and get back to you.

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