We often face many dilemmas when it comes to making a decision about our personal finance. One of the greatest…
Have you ever wondered why did HDB make it so difficult for you to find out how much HDB grants for Singaporean you can qualify for? Why don’t they just make a simple webpage that lets you calculate how much HDB grant you can receive rather than have everything on a separate webpage? Well, we did.
After hours of searching through the HDB website and reading up on every single grant there is, we realized that there is actually a very simple solution to this. That’s why we decided to build this 5-minute guide that will solve this headache for every Singaporean who is applying for your HDB for the first time.
The first grant you should definitely aim for is the Enhanced Housing Grant (EHG). This grant was recently announced on 11th September (check it out here). The EHG is meant for couples who earn ≤ $9,000 per month.
Since most Singaporean couples should qualify for this grant, unless you have exceeded the income ceiling of $9,000, this is the grant that you should definitely check out first. So, depending on how much is your monthly household income, you can get between $5,000 to $80,000 of grant under the EHG.
Note: If you are getting a BTO, you can skip the rest of the guide because you can only qualify for the EHG.
Grant Amount: $5,000 to $80,000
After confirming whether you qualify for the EHG, the next grant to check whether you qualify or not should be the Family Grant. The Family Grant is meant for Singaporeans who are looking to buy a resale flat.
If you are one of those interested in buying your first home from the resale market, you need to then check the remaining lease of the resale flat. Ideally, the remaining lease on the resale flat should cover the youngest co-owner (between you and your spouse) till age 95. This is to ensure that you have a roof over your head till age 95. From a financial standpoint, having the remaining lease cover you till age 95 means that you qualify for the Family Grant.
Now that you have determined whether you qualify for the Family Grant, the next step is to find out how much Family Grant can you get. For the Family Grant, it is determined by your housing size. For housing size of 4-room or smaller, you can get $50,000 in Family Grant. For anything that is 5-room or larger, the grant amount goes down slightly to $40,000.
Grant Amount: $40,000 or $50,000
To encourage families to live closer to their parents, the government introduced the Proximity Housing Grant (PHG). If you are getting a resale flat within a 4km radius from your parents’ place, you can get $20,000 from PHG.
Rather than live near your parents, some couples might choose to live with your parents. This is also another way for you to qualify for the PHG with grant amount of $30,000.
Potential Grant Amount: $20,000 or $30,000
Now that we have simplified the HDB grants for you, the next thing on your mind should be the home loan. What are the things you should look out for in a home loan application? How do you choose the right home loan that will ensure that you don’t waste money on interest rate payments?
Also, you may want to protect your family should you pass away or suffer from a disability and can no longer afford to pay for your housing loan with mortgage insurance. We have done up a comparison for most of the insurers in Singapore.
If you are looking for a way to simplify home loans just like this 5-minute HDB grant guide, make your enquiry here to get the best rate for your housing loan.
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