Disclaimer (Block 1): This article is for educational purposes only and is intended to assist CEA-registered property agents in understanding regulatory frameworks. It does not constitute financial, tax, or legal advice. LEVR's calculations are indicative only. Always verify rates and eligibility with your bank, HDB, CPF Board, or a licensed financial advisor before advising clients.
What Is the Enhanced CPF Housing Grant (EHG)?
The Enhanced CPF Housing Grant (EHG) was introduced in September 2019 to replace the Additional CPF Housing Grant (AHG) and the Special CPF Housing Grant (SHG). It consolidated two earlier grants into a single, more generous subsidy for first-time buyers.
The EHG is available for both BTO and resale HDB flat purchases, making it one of the few grants that applies to both flat types. For resale purchases, the EHG is credited against the purchase price and directly reduces the buyer’s CPF and cash outlay.
The key principle of the EHG is that it is income-graduated — buyers with lower household income receive larger grants. The maximum grant of $120,000 is available to households earning $1,500 or less per month. Households earning up to $9,000 per month qualify for some EHG.
EHG Grant Amounts by Household Income
EHG amounts are based on the average gross monthly household income of all applicants over the 12 months preceding the HFE application. The table below shows the grant structure for 2026.
| Average Gross Monthly Household Income | EHG Grant Amount |
|---|---|
| $1,500 and below | $120,000 |
| $1,501 – $2,000 | $110,000 |
| $2,001 – $2,500 | $100,000 |
| $2,501 – $3,000 | $90,000 |
| $3,001 – $3,500 | $80,000 |
| $3,501 – $4,000 | $70,000 |
| $4,001 – $4,500 | $60,000 |
| $4,501 – $5,000 | $50,000 |
| $5,001 – $5,500 | $40,000 |
| $5,501 – $6,000 | $30,000 |
| $6,001 – $6,500 | $20,000 |
| $6,501 – $7,000 | $15,000 |
| $7,001 – $8,000 | $10,000 |
| $8,001 – $9,000 | $5,000 |
| Above $9,000 | Not eligible |
Agent note: The $9,000 income ceiling for EHG covers the majority of first-time buyer households. Buyers who narrowly miss a higher grant bracket may consider whether adjusting their application timing (for example, applying during a period when one applicant is on no-pay leave or between jobs) is appropriate — but agents should never advise misrepresentation of income. All income declarations to HDB are verified against CPF contribution records and IRAS assessments.
EHG Eligibility Conditions
The EHG is not automatically available to all first-time buyers. There are four primary eligibility conditions:
1. First-Timer Status
Both applicants (and their spouses, if applicable) must be first-timers — meaning they have not previously received a housing subsidy from HDB. First-timer status is forfeited if either applicant:
- Has previously purchased a new BTO or DBSS flat from HDB
- Has previously received an AHG, SHG, or EHG on a resale purchase
- Has previously received a CPF Housing Grant on a resale HDB flat
- Has previously received an HDB remission, concession, or subsidised purchase
Single buyers who previously owned a private property and have disposed of it may still qualify as first-timers for HDB grants, subject to income and other conditions. Agents should verify with HDB’s official eligibility checker.
2. Income Ceiling
Household income must not exceed $9,000 per month (average gross monthly over 12 months). For singles buying under the Single Singapore Citizen (SSC) scheme, the income ceiling is $4,500 per month.
3. Continuous Employment
At least one buyer must have been employed for a continuous 12 months before the HFE letter application. This condition exists to prevent grant abuse by applicants who temporarily reduce income before applying. Involuntary unemployment (such as retrenchment) may be assessed on a case-by-case basis by HDB.
4. Flat Type Restrictions
For resale purchases, the EHG can be used for any HDB flat type (2-room Flexi through 5-room and Executive). However, the EHG for resale purchases of 4-room or larger flats comes with a lease requirement: the flat must have a remaining lease of at least 20 years and be able to cover the youngest buyer to age 95.
For shorter-lease flats, the EHG amount may be prorated based on the remaining lease.
How EHG Stacks With Other Grants
The EHG does not stand alone. First-time buyers purchasing resale HDB flats may be eligible for additional grants on top of the EHG:
| Grant | Maximum Amount | Key Condition |
|---|---|---|
| Enhanced CPF Housing Grant (EHG) | $120,000 | Income ≤$9,000/month; first-timer |
| Proximity Housing Grant — Living Together (PHG-L) | $30,000 | Buy within 4km of parents or children |
| Proximity Housing Grant — Living With (PHG-W) | $20,000 | Buy to live with parents or children in same unit |
| Step-Up CPF Housing Grant | $15,000 | Second-timer families from 2-room Flexi; not stackable with EHG |
Important: The Step-Up CPF Housing Grant is a second-timer grant. It cannot be stacked with the EHG (which is a first-timer grant). A first-timer buyer eligible for EHG and PHG can receive up to $150,000 in combined grants on a resale HDB flat purchase.
How EHG Is Applied in Practice
EHG is credited directly against the purchase price of the flat, not paid as cash to the buyer. The practical effect is that it reduces the total amount the buyer needs to fund through CPF and loan.
Worked Example
A first-timer SC couple with a combined income of $4,500/month buys a 4-room resale flat for $500,000. They qualify for $60,000 EHG and $30,000 PHG-L (buying within 4km of parents).
| Item | Amount |
|---|---|
| Purchase price | $500,000 |
| Less: EHG | ($60,000) |
| Less: PHG-L | ($30,000) |
| Net amount to finance | $410,000 |
| HDB loan (80% of valuation, assuming val = price) | $400,000 |
| Balance from CPF OA / cash | $10,000 |
In this scenario, the grants effectively reduce the buyer’s out-of-pocket requirement from $100,000 (20% downpayment if taking HDB loan) to $10,000 — a significant difference in upfront capital needed.
EHG for BTO vs Resale Purchases
The EHG is available for both BTO and resale HDB purchases, but the mechanics differ:
- BTO: EHG is applied as a direct discount to the selling price of the flat at point of purchase from HDB. The buyer pays HDB the subsidised price.
- Resale: EHG is applied as a credit at HDB appointment. The buyer pays the seller the full agreed resale price; HDB credits the EHG amount to the buyer’s purchase account. The effect is the same — the buyer’s net outlay is reduced by the grant amount.
For resale purchases, the EHG amount is determined at the HFE letter stage, not at OTP signing. This means buyers know their grant amount before committing to a property — which is one reason the HFE letter should be obtained before beginning the property search.
Common EHG Mistakes Agents See
- Assuming income from all sources counts uniformly: CPF contributions are included in gross income for the EHG assessment. Commission-based and variable income is averaged over 12 months. Some buyers underestimate their assessable income and are surprised when their grant bracket is lower than expected.
- Not accounting for EHG in affordability discussions: Agents who discuss affordability without factoring in the EHG amount give buyers an unnecessarily pessimistic view of what they can afford.
- Advising buyers to “wait for a lower income year”: This is dangerous advice. HDB assesses income over 12 months; CPF and IRAS records are verified. Agents who suggest timing strategies that could be construed as income misrepresentation expose themselves and their clients to serious risk.
- Forgetting the 12-month employment condition: Applicants who have been self-employed, freelance, or between jobs may not satisfy the continuous employment requirement. This should be confirmed before the HFE application is submitted.
Using LEVR to Model Grant Impact Before the HFE Application
LEVR’s Home Loan Calculator allows CEA agents to model the financial impact of different grant scenarios before the buyer submits their HFE application. The key pre-HFE checks:
- Estimate EHG quantum: Based on the buyer’s average gross monthly income, determine their likely EHG bracket from the table above.
- Check PHG eligibility: If the buyer is purchasing within 4km of parents, add the PHG-L or PHG-W amount to the grant total.
- Model affordability: Subtract total grants from the target purchase price, then use LEVR to check whether the remaining loan amount passes the MSR 30% cap and TDSR 55% ceiling.
This three-step check takes under five minutes and prevents the most common situation CEA agents face: buyers who fall in love with a flat at a price point they cannot actually afford once the grant reality is clear.
Disclaimer (Block 3): LEVR's calculator outputs are estimates based on inputs provided and current regulatory parameters as known at time of publication. They are not a guarantee of borrowing capacity, stamp duty liability, or CPF eligibility. Regulatory thresholds and rates may change. Always verify with IRAS, your bank, or a licensed financial advisor before making financial decisions.