Requirement for At Least One Co-occupier for First-timer Application of HDB BTO Flats to Have Worked Continuously for 12 Months to Be Eligible for Housing Grant

Mr Liang Eng Hwa asked the Minister for National Development (a) what is the rationale for requiring at least one of the co-applicants or co-occupiers of first-timer families applying for HDB flats to have worked continuously for 12 months to be eligible for the Enhanced CPF Housing Grant (Families); and (b) whether the Government plans to review the need and period of this continuous employment requirement.

The Government is committed to helping Singaporeans, particularly first-timers and lower to middle-income families, own a home. On top of providing significant market discounts in pricing new flats, we offer generous housing grants to further support first-timer home buyers. For example, eligible first-timer families may receive up to $80,000 of Enhanced Central Provident Fund (CPF) Housing Grant (EHG) when they buy a new or resale flat. The EHG amount is tiered by household income, to provide more support for those with lower household income.

To qualify for the EHG, at least one member of the core family nucleus must be in continuous employment for at least 12 months, amongst other conditions. The 12-month continuous employment condition provides a good proxy of a household’s financial situation, so that the corresponding means-tested grant amount can be determined fairly.

The majority of flat buyers are able to meet the continuous employment condition at the point of application for the Housing and Development Board (HDB) Flat Eligibility (HFE) letter. For eligible young couples comprising full-time students or National Servicemen, as well as those who have recently completed their studies or National Service, who may face difficulties meeting the continuous employment condition at the point of application for an HFE letter, they may still apply for an HFE letter first, while the assessment of their income for the EHG and HDB housing loan is deferred closer to key collection. Other flat buyers who face difficulties in meeting the condition at the point of application for an HFE letter can approach HDB for advice.

We will continue to monitor flat buyers’ needs and review our policies where necessary.