Introduction
Purchasing an executive condominium is not an easy feat, financially there are several hurdles to cross. To complete your EC purchase, you would first need to be able to afford the 25% down payment, be eligible for the 75% loan quantum and finally service the monthly mortgages.
Hence, every cost advantage that you can build into the purchase of your EC, will directly lighten the load on your wallet.
The EC CPF housing grant of up to $30k is a sure way to reduce the amount of cash down payment that you will need to fork out. But that is only true if you are able to qualify for it.
Focus of this article
In this article, we will systematically touch all the information that you would like to know about EC housing grants. We will discuss grant eligibility criteria, find out the maximum grant amount that you can qualify for and dwell into how the grants can be used.
A little bit about ourselves
To give you the assurance that you are not wasting the next 5 mins of your time, reading information plug from the generic web, let us qualify ourselves.
We are a team of real estate owners, investors that became full time realtors. We experienced the challenges and benefits of getting our first EC and using it as an asset to springboard away into owning two private properties.
We believe making wise choices in real estate can help many of us escape the mindless 9 to 5 grind and look forward to helping our readers do the same.
What is an EC housing grant ?
The CPF housing grant for executive condominium is a subsidy provided by the Singapore government to first time applicants for EC. It is targeted at assisting buyers below a certain income bracket to make their EC purchase more affordable.
The types of grants available for EC
Family housing grant
Family grant is a grant targeted at providing subsidies for the EC applicant, when both applicants are first time grant applicants and both qualify for EC grant.
The grant amount is then tiered according to income brackets of both the joint applicants.
Half housing grant
The half housing grant caters to applications whereby one of the joint applicants is a first time grant applicant and the other co-applicant have previously received a housing subsidy before.
As the name suggests, the grant amount is half that of the family housing grant. Similarly, the grant amount is determined in accordance with the combined income of both the joint applicants.
Citizen Top Up Grant
In the case where by an EC application consists of one Singapore citizen and another Singapore permanent resident, the couple is still eligible for the family housing grant.
But the grant amount is always $10k lesser for whichever tier of grant based on income bracket, as compared with a couple that comprise both Singapore citizens.
In such cases, there would be an opportunity to apply for a citizen top up grant of $10k, when the PR joint applicant attains Singapore citizenship.
Who is considered a first time EC grant applicant ?
The term “first time grant applicant” or “first timer” has been used repeatedly in the section above. It is the main determinant of whether you qualify for the full family grant or half housing grant.
Before we progress to dive into the details of grant eligibility, let’s first clear our doubts on who is considered a first time grant applicant.
First time grant applicant checklist
Grant received
From a grant receipt standpoint, a first timer is someone that has not taken any form of housing subsidy from HDB before.
HDB housing subsidies extend beyond the usual grants that you receive when purchasing a BTO or resale condo, such as CPF grant, enhanced CPF grant, proximity grant to selective enbloc redevelopment benefits.
Property Ownership
A first timer is also defined as someone that do not previously own any property purchased directly from HDB, which includes BTO, DBSS, EC.
Resale HDB purchased with subsidies, is considered a receipt of government subsidy. Hence, someone that owned a resale HDB purchased with a government grant will not be considered a first timer.
On the flip side, an applicant owning a resale HDB purchased without any government grant can still be counted as a first time EC grant applicant.
Lastly, resale EC and resale DBSS purchased on the resale market, are not counted as property purchased directly from HDB
Previous Housing Purchase
A first timer must not have taken any CPF housing grant to purchase EC, DBSS or a resale HDB flat
Eligibility criteria for EC CPF housing grant
Below is an exhaustive list of criterias that you must qualify for in order to be eligible for the EC grant.
Citizenship Status
The family nucleus must consist of at least one Singapore citizen and the other joint applicant must be either a Singapore citizen or a Singapore PR.
Age
All applicants must be at least 21 years and above
Family nucleus
- The EC grant is only eligible for the following family nucleus
- Application comprising of you applying with your spouse and children
- Application comprising of you applying with your fiance or fiancee
- Application comprising of you applying with children under your custody or widowed
Application made by Singles under the Joint Singles Scheme and orphans under the orphan scheme is not eligible for EC housing grant.
Household status
- You and your joint applicants must not
- Be an owner of a flat bought directly from HDB, this includes BTO, DBSS or EC bought directly from developer
- Have received any cpf housing grant for the purchase of a resale HDB flat
- Have taken any other form of housing subsidy eg. SERS, privatisation of HUDC and etc
- Previously sold any flat bought directly from HDB, including BTO, DBSS, EC bought directly from the developer.
How much EC CPF housing grant are you eligible for ?
In this section, let’s use a few hypothetical example to run through the process of determining how much grant an EC applicant is able to claim under different scenarios.
| Average Gross Monthly Household Income | Family Grant - Both applicants are Singapore citizens | Family Grant - 1 Singapore citizen + 1 PR | "Half Housing Grant - First timer + Second Timer " |
|---|---|---|---|
| $10,000 or lower | $30,000 | $20,000 | $15,000 |
| $10,001 - $11, 000 | $20,000 | $10,000 | $10,000 |
| $11,001 - $12,000 | $10,000 | nil | $5,000 |
Example #1
SC + SC couple
Both first timer
9k income
Grant amount 30k
Assuming both couples are first timer and both are Singapore citizen, they will qualify for the full family housing grant.
Base on their combined income, grant amount would be $30k.
Example #2
SC + SPR couple
Both first timer
9k income
Grant amount 20k
Now, given that one couple is a Singapore permanent resident, they will still qualify for the full family grant but grant will be $10k lower in quantum as compared to previous example.
Example #3
SC + SC couple
1 first timer + not first timer
9k income
Grant amount – Half housing grant – 15k
Assuming one of the applicant is not a first timer, but both applicants are Singapore citizen.
The couple will be receiving a half housing grant amounting to 15k.
Example #4
SC + SPR couple
1 first timer Citizen + not first timer PR
9k income
Grant amount – Half housing grant – 15k
Half housing is grant is still applicable when first timer is a Singaporean citizen and Singapore PR applicant did not qualify for first timer status.
Example #5
SC + SPR couple
1 first timer SPR + first timer PR
9k income
Grant amount – 0
Half housing grant is only available when first timer is Singapore citizen and not applicable to when only Singapore PR is first timer, while Singapore citizen fail to attain first timer status.
How to apply for EC CPF housing grant ?
The EC housing grant is applied at the point when you book the EC with the developer. Hence, it is important to work together with your property agent to run through all eligibility criteria and grant amount first to ensure a smooth session during booking day, with no unforeseen uncertainties.
If you need help accessing your grant criteria and amount of grants that you can receive. Drop us a message, we will be happy to run it through with it.
EC grant disbursement
The grant amount will not be disbursed in cash. It will be disbursed into each applicants CPF ordinary account.
| Types of Applicants | Grant Distribution |
|---|---|
| Sole Singapore citizen applicant | Full grant |
| Joint Singapore citizen (husband and wife) | Half of the full grant each |
| First timer + Second timer couple | Full grant given to *Singapore citizen first timer applicant |
| Multi generation family - Singapore citizen applicants | - |
| Married siblings with spouses | Grant given only to a maximum of 2 applicants who are husband and wife |
| Parents and married child | Grant given only to a maximum of 2 applicants who are husband and wife |
EC grant usage
The grant amount can be used to offset downpayment for EC or reduce the overall mortgage amount to be loaned.
EC grant exclusion
Unfortunately EC grants are not applicable to applicants of joint singles scheme or applicants or orphan scheme.
Final Words
This wraps up our article on everything you need to know about EC grants.
If you are interested in learning more about how you can take the next step towards real estate investing. Check out our other article on decoupling and how to purchase your second property while avoiding ABSD.
FAQ
How much CPF grant can I use for EC ?
You can use the full grant amount for your EC purchase, but note that you would have to first pay the 5% mandatory cash payment, stipulated by MAS. The remaining 20% deposit that is normally paid using cash or CPF, can be offset with the grant you received. Beyond the 25% down payment, you can use grant to reduce the amount to be funded by mortgage.
Is there a CPF grant for EC ?
Yes there are 3 different types of CPF grants available for new EC purchased directly from the developer. They are CPF family housing grant, half housing grant and citizen top up grant.
What is the income limit for EC grant ?
Income limit is not an eligible criteria for EC grant, but for applicants whose combine household income exceeds $12,000. No grant is available
Both me and my wife applied for an EC grant, how will the EC grant be disbursed ?
Assuming both of you are eligible for EC grant, the grant will be disbursed equally into each of your CPF ordinary accounts.
