What is the HDB Enhanced Housing Grant?

Buying your first HDB flat in Singapore can feel like a tug of war between what you want and what you can realistically afford. Prices move, interest rates change, and the “true” cost of home ownership is never just the listing price. That is why housing grants matter so much. They are not a nice bonus at the end of the process. For many first-time buyers, they are the difference between a home that fits your life and a home that quietly strains your finances for years. The HDB Enhanced Housing Grant, commonly known as the Enhanced CPF Housing Grant or simply EHG, is one of the most important grants in this landscape because it is designed to support first-time buyers across both new flats and resale flats, with more help going to households with lower incomes.

At its core, the EHG is a CPF housing grant meant to make public housing more affordable and accessible. It supports first-time Singapore Citizen and Singapore Permanent Resident flat buyers who are applying for a new Build-To-Order flat or purchasing a resale flat, and it does so in a way that is tied to income and employment, rather than being a flat benefit that everyone receives in equal measure. The idea is straightforward. If you are stepping into home ownership for the first time and your household income is within the eligibility limits, the government helps to reduce the cost burden so that you can take a smaller loan, pay lower monthly instalments, and avoid overextending yourself right at the start of your adult financial life.

One reason EHG is frequently mentioned is the size of the grant. For couples and families, the EHG can be as high as $120,000, depending on household income. For singles buying a flat on their own, the EHG (Singles) can be up to $60,000, also depending on income, with scenarios where two singles buying together may each be eligible, allowing the combined support to reach up to $120,000. These are headline numbers, but they are not “one-size-fits-all” amounts. The grant is tiered, which means the amount you qualify for depends on where your assessed income sits on the scale. The practical takeaway is that you should think of EHG as a sliding level of support that is calibrated to your income profile, not as a guaranteed fixed payout.

To understand whether EHG applies to you, it helps to start with who it is meant to help. For first-timer couples and families, the monthly household income ceiling to qualify is $9,000. This ceiling is repeated across official explainers because it is one of the main gates. If your income is above that, EHG will not apply. If you are within it, the next important gate is employment continuity. Under CPF Board’s guidance, the buyer or spouse must be employed continuously for 12 months before the flat application and remain employed at the point of application. MyNiceHome, which provides practical HDB guides, explains this in the same way and makes clear that this 12-month requirement is not a minor technicality. It is a core part of the design, because EHG is meant to support households with stable, ongoing income rather than households whose eligibility is based on a one-off snapshot.

Singles have a parallel pathway, but with their own conditions. If you are buying a flat on your own as a first-timer, the EHG (Singles) can support you, and the standard monthly income ceiling is $4,500. There are also cases where the ceiling is $9,000, such as when buying with other singles or when purchasing a resale flat with your parents, which is important because it widens the situations where singles can still qualify. MyNiceHome also highlights a detail many people only learn late in the process, which is that eligible first-timer singles must be aged 35 and above, alongside meeting the income and employment requirements. If you are planning ahead, this matters because it shapes both timing and strategy, especially if you are deciding between waiting to buy on your own versus buying earlier with family.

There is another nuance that often surprises buyers, especially those in mixed households where not everyone is a first-timer. CPF Board notes that EHG is applicable to families with at least two first-timer applicants, and if you apply as a first-timer with a second-timer, the income ceiling is halved, meaning the average gross monthly household income over the past 12 months must not exceed $4,500. This is not a small adjustment. It can change your eligibility entirely. It is also a reminder that housing grants are structured to prioritise genuine first-time entry into the subsidised housing system.

EHG also matters because it can be used for both new and resale flats. For a BTO buyer, the story is often about stretching the budget to get the flat type or location you want while still keeping monthly payments manageable. For a resale buyer, the story is often about finding a flat that meets your life needs now, whether that is living near parents, moving into a mature estate, or securing a home quickly without waiting years for construction. The fact that EHG supports both paths is what makes it such a central part of affordability planning. When you run your numbers, you are not just choosing between BTO and resale on lifestyle alone. You are also choosing between different grant combinations that can change your cost structure significantly.

This is where EHG becomes especially powerful for resale buyers. MyNiceHome explains that eligible first-timer households buying a resale flat can enjoy an EHG of up to $120,000 in addition to the CPF Housing Grant of up to $80,000 and the Proximity Housing Grant of up to $30,000, meaning first-time resale homebuyers can potentially receive up to $230,000 in housing grants. The Made For Families government site echoes the same idea, describing the $230,000 figure as the combined support from the CPF Housing Grant for resale flats, EHG, and PHG for first-timer couples buying a resale flat. This stacking effect is not just a catchy headline. It can change the size of your loan, your monthly instalment, and the amount of CPF you need to commit upfront, which then changes how much buffer you keep for renovation, emergencies, and future plans.

However, the EHG has a rule that buyers cannot afford to ignore, particularly in the resale market, and that is the lease requirement tied to age 95. Both CPF Board and MyNiceHome explain that to enjoy the full EHG amount for the relevant income brackets, the purchased flat must have sufficient remaining lease to cover the buyers and their spouses to age 95, otherwise the grant amount is pro-rated. This is a critical detail because it means two households with the same income can receive different EHG amounts depending on the remaining lease of the flat they choose. If you are considering older resale flats, the grant you expect can shrink, and that can ripple into your affordability calculations. A smaller grant can mean a larger loan, higher monthly payments, and less room for financial flexibility. It also encourages buyers to treat lease as a financial variable, not just a personal preference.

CPF Board also clarifies that even if you are 55 and above, you can still qualify for EHG as long as you meet the income and employment requirements, but the remaining lease rule still applies and you may receive a pro-rated amount if the lease cannot cover the youngest buyer up to age 95. This is especially relevant for seniors who are right-sizing or buying a home later in life, because the grant rules are still anchored to lease adequacy, not simply to age.

Another misconception that trips up first-timers is how the grant is actually received and used. Housing grants under CPF are not handed out as cash you can spend freely. They are credited into CPF and then used as part of the financing for the flat, helping to reduce the purchase price you need to cover through CPF savings and housing loans. The practical impact is that EHG can reduce how much you need to borrow, which can improve monthly affordability and reduce the total interest paid over the life of the loan. It can also strengthen your overall financing position because a smaller loan is easier to service within the usual affordability limits that apply when you take an HDB loan or a bank loan.

At the same time, the fact that grants flow through CPF creates an important long-term implication that every buyer should understand: what happens when you sell the flat. Many people phrase this as “Do I need to pay back the grant?” and the correct answer is that you are not repaying the government like a personal debt, but CPF rules require you to refund CPF monies used for the property, including grants, back into your CPF account when you sell or transfer the property, together with accrued interest, subject to CPF’s refund rules and the sale proceeds available. CPF Board explains that upon the sale or transfer of your property, sale proceeds are used to pay off the housing loan and refund the CPF amount you used for the property, and the amount to be refunded is the principal withdrawn plus accrued interest, with additional refund requirements if you have pledged the property to meet your retirement sum. CPF Board’s educational resource on sales proceeds makes the point even more direct, stating that housing grants received and their accrued interest will need to be returned to your CPF account and are already included in your CPF housing refund amount.

This refund process is not meant to punish you. It reflects the logic that CPF is primarily for long-term needs, especially retirement. If you use CPF funds to buy a home, you are diverting money that could have earned CPF interest over time, so the refund restores your CPF position when you exit the property. CPF Board also explains what happens after the refund. If you are below 55, your housing refunds are credited to your Ordinary Account. If you are above 55, the refund will first be used to top up your Retirement Account to meet your required retirement sum, and the balance remains in your Ordinary Account. This matters because it affects how much cash you actually walk away with after a sale. Selling your home can look like a big payday on paper, but the real proceeds depend on the outstanding loan, sales expenses, and the CPF housing refund required.

Once you see the EHG rules clearly, it becomes easier to avoid common planning mistakes. One mistake is assuming eligibility is based on a single month of income. The reality is that EHG is assessed using income and employment history, including the requirement of continuous employment for 12 months before application. Another mistake is treating the maximum grant figure as guaranteed, without checking the remaining lease, especially for resale flats. The age-95 lease rule can reduce the grant through pro-rating, and that can materially alter your affordability. A third mistake is viewing grants as a reason to stretch to the maximum flat you can “qualify for.” Grants help, but they do not remove the need for buffers, especially when life costs like renovation, childcare, eldercare, and job transitions can hit right after you buy.

Ultimately, the HDB Enhanced Housing Grant is best understood as targeted support for first-time buyers that helps to lower the financial barrier to owning an HDB flat, whether you choose a BTO or a resale home. It can be substantial, with support up to $120,000 for eligible couples and families and up to $60,000 for eligible singles, but it is tied to income ceilings, employment stability, and lease adequacy. When you plan with those rules in mind, EHG stops being a confusing policy term and becomes what it is meant to be: a practical lever that can reduce your loan size, strengthen your monthly affordability, and help you buy a home without sacrificing long-term financial stability.