The Central Provident Fund (CPF) is a retirement savings scheme in Singapore that allows members of the public to top up their savings by up to $60 per month. Therefore, everyone needs to understand how this works to ensure that they take advantage of it and not miss out on any opportunity to save. This article will help you figure out if you qualify for the housing grant and, if yes, how much money you can get each month.
What is the CPF Housing Grant?
The CPF Housing Grant is a subsidy by the CPF Board that allows people who contribute to their retirement fund to receive a discount on housing prices. This means that if you contribute to your CPF, you will receive a discount on your housing prices because, as a public pension fund, CPF is a risk-free investment. While it will make little sense for you to pay thousands of dollars more for your condo, it is a good way to get a secured living space at an affordable price.
How does the CPF housing grant work?
If you are eligible for the housing grant and buy an HDB or a private property, you will get a mortgage interest subsidy of $60 monthly. This means that if you take out a mortgage of $300,000, you will only have to pay $240,000. Of course, you will have to pay the rest of the amount, which is generally about 10% to 20%. Meanwhile, if you are buying a private property, your finance company will give you a lower interest rate than usual because of the housing grant. The CPF Housing grant has been around for a long time, and there have been no changes to it since. Thus, this means that it will likely be around for a long time as well.
Types of Housing Grants
There are two types of housing grants that you can receive. The first is a basic housing grant, and the second is a private housing grant. You can apply for either one depending on your income level and financial situation.
- Basic Housing Grant: This is the most common type of housing grant. You can apply for this housing grant if you earn below $5,000 per month. If you are eligible for this, then you will get a grant of $2,000 annually.
- Private Housing Grant: This is a private grant, meaning that it is only available to individuals who are buying private properties or are buying a private condo. If you are eligible for this grant, then you will get a housing grant of $4,000 for each property. There is no maximum limit to the number of properties that you can buy with this grant. Private property includes HDB flats as well.
Requirements for the CPF Housing Grant
There are a few requirements that you need to fulfill if you want to apply for a housing grant. First and foremost, you need to be a member of the CPF. You can become a member by submitting your CPF Enrollment Form at any of the CPF offices. Next, you need to have contributed to the CPF for at least 5 years. You can verify this by submitting your CPF Payment Certificate at any of the CPF offices. Finally, you need to have bought a house. If you are buying an HDB flat, the house does not have to be yours. You can apply for the housing grant on behalf of anyone who has contributed to the CPF.
How to Apply for the CPF Housing Grant
If you meet the requirements, then you can apply for the housing grant. You need to do this at any of the various CPF offices. There are close to 100 of these offices across Singapore, and you can find the address of the nearest one by visiting the CPF website. Once you go to one of the offices, you need to fill in a housing grant application form and submit supporting documents such as your CPF Enrollment Form, your CPF Payment Certificate, and, most importantly, your recent bank statement. Once the application form is submitted, you will receive a Notification of Your Eligibility for the Housing Grant. This is what you need to do next.
CPF Housing Grant Amount
If you meet the requirements, then your monthly housing grant will be $560. There is no limit to the maximum number of people who receive the same amount. However, it is important to note that only individuals who are buying a house or buying a private condo can apply for a private housing grant.
Eligibility for the CPF Housing Grant
- You need to have been a contributor to the CPF for at least 5 years. This creates some sort of hierarchy and puts you in a position.
- You are buying a private property or a private condo worth at least $1,600.
- Your monthly income is below $5,000.
- Your spouse does not earn a salary. In case your spouse does not want a salary, this shows that you are really in need of a CPF housing grant and puts you in a better position to get one.
Do we need to pay back the CPF grant?
No, you do not need to pay back the CPF housing grant. When the time comes for you to retire, you can continue to get the same discount on your property prices. CPF Housing Grant Amount $560 per month (Basic Housing Grant only)
Conclusion
The Central Provident Fund (CPF) is a retirement savings scheme in Singapore that allows members of the public to top up their savings by up to $60 per month. Therefore, everyone needs to understand how this works to ensure that they take advantage of it and not miss out on any opportunity to save. This article will help you figure out if you qualify for the housing grant and if yes, how much money you can get each month.