To further help lower-income and middle-income households afford their first homes, the Special CPF Housing Grant (SHG) will be increased. The changes, which were announced on Sunday (Aug 23) at the National Day Rally, will apply from the September Build-To-Order exercise.
The household income ceiling for the SHG will be raised to S$8,500, up from the current S$6,500. The maximum grant amount also will be doubled from S$20,000 to S$40,000.
With the enhancement, more than two-thirds of Singaporean families can qualify for the SHG, compared to more than half currently.
For example, a first-time buyer earning $4,000 a month and planning to buy a four-room flat that costs S$295,000 in a non-mature estate would receive an Additional Housing Grant of S$15,000. Under the changes to the SHG, the family will also receive a grant of S$40,000, up from the previous S$20,000.
This means the family will receive a total of S$55,000 in grants and they will pay S$240,000 for the flat, after deducting the grants.
For another family who earns S$1,000 a month and buys a two-room flat that costs S$110,000, they will receive an Additional Housing Grant of S$40,000. With the increased SHG, the family will also receive another S$40,000, bringing the total amount of grants received to S$80,000.
After deducting grants, the family has to pay S$30,000 for the flat.
HELP FOR SINGLES
Singles will also get more help with their first flat. The income ceiling to qualify for the SHG will be raised by S$1,000 to S$4,250. The maximum grant amount will also be doubled from S$10,000 to S$20,000.
When asked if too much focus was placed on the middle- and higher-income groups, National Development Minister Khaw Boon Wan said since public housing is now accessible to a “big chunk of the Singaporean population”, the housing subsidies will then have to be extended upwards.
“It’s never at the expense of the lower-income group,” Mr Khaw said. “Because even as we extend upwards to the higher-income group, we are also improving or enhancing the subsidies for the low-income group.”
Source : Channel NewsAsia – 24 Aug 2015