Disbursement of Housing Grants through Home Buyers' CPF Accounts

Mr Chua Kheng Wee Louis asked the Minister for National Development what is the rationale for the disbursement of housing grants through home buyers' CPF accounts.

All flat buyers enjoy a housing subsidy when they buy a Build-To-Order (BTO) flat from the Housing and Development Board (HDB), as HDB applies a significant subsidy to the assessed market value of the flat and prices the flat below the market. In addition, eligible first-timer (FT) flat buyers can enjoy an Enhanced CPF Housing Grant (EHG) of up to $80,000, which provides further support to lower- and middle-income families buying their first home.

On the other hand, HDB resale flats are transacted at prices mutually agreed upon by flat sellers and buyers. Eligible FTs buying a resale flat can receive up to $160,000 in housing grants. This comprises a Central Provident Fund (CPF) Housing Grant of up to $50,000, EHG of up to $80,000 and Proximity Housing Grant of up to $30,000.

Housing grants are credited into an eligible flat buyer's CPF Ordinary Account so that the funds are set aside for the flat purchase. The housing grants can be used for downpayment, as well as capital payment of the balance purchase price to reduce the housing loan amount required. Upon disposal of the flat, the housing grants will be returned to the owner's CPF account according to the prevailing CPF rules, to help Singaporeans with their housing, healthcare and retirement needs.