Government Housing Schemes

In Singapore, the government provides a variety of housing schemes and grants to Singapore Citizens and Permanent Residents to help with the increasing costs of property in the country.

The Central Provident Fund (CPF) stands as a key pillar in supporting citizens’ homeownership aspirations. The CPF, a comprehensive social security savings plan, plays a crucial role in aiding individuals in financing their homes.

The CPF’s Home Protection Scheme (HPS) is a noteworthy avenue that directly intersects with the realm of home loans. HPS is an insurance scheme designed to safeguard CPF members and their families by providing coverage for outstanding housing loan liabilities in the event of unforeseen circumstances such as death, terminal illness, or permanent incapacity. Opting for HPS ensures that the burden of repaying the outstanding housing loan does not fall solely on the surviving family members, thereby enhancing financial security.

Furthermore, the CPF Ordinary Account (OA) serves as a funding source for housing-related expenses, including mortgage repayments. CPF members can utilize their OA savings to service their housing loans, covering monthly instalments and reducing the financial strain on their cash flow. The OA offers a competitive interest rate, providing an efficient means for borrowers to manage their home loan obligations.

Singapore’s government actively promotes homeownership through various housing schemes and grants, further enhancing the accessibility of home loans. One prominent initiative is the Housing and Development Board’s (HDB) Built-To-Order (BTO) scheme. Under this program, prospective homeowners can apply for new flats directly from HDB, enjoying the advantage of purchasing a property at a subsidized rate compared to the open market. The BTO scheme caters to the diverse housing needs of citizens, offering options ranging from studio apartments to multi-room flats.

The Enhanced CPF Housing Grant (EHG) is another significant component of the government’s efforts to facilitate home ownership. Introduced to replace the previous Additional CPF Housing Grant (AHG) and Special CPF Housing Grant (SHG), EHG provides eligible first-time buyers with financial assistance based on their income levels. This grant directly contributes to reducing the financial burden of acquiring a home, making it more achievable for a wider spectrum of citizens.

In addition to EHG, the Family Grant and Proximity Housing Grant (PHG) add layers of support to specific demographics. The Family Grant extends financial assistance to families purchasing their first resale flat, while the PHG incentivizes multi-generational living by providing grants to families buying a resale flat near their parents’ or married children’s homes. These initiatives align with the government’s vision of fostering strong family ties and community bonds.

The Step-Up CPF Housing Grant is tailored for families looking to right-size their homes as their needs evolve over time. By encouraging families to move to smaller and more affordable homes, this grant facilitates a smooth transition while addressing changing lifestyle requirements.

In conclusion, the integration of CPF with home loans and the multifaceted approach of government housing schemes and grants collectively contribute to shaping Singapore’s homeownership. The interplay between CPF and mortgage financing not only eases the financial burden on individuals but also enhances the security and stability of the housing market. Government initiatives, such as the BTO scheme and various grants, underscore Singapore’s commitment to making homeownership a realistic and sustainable goal for its citizens, fostering a resilient and inclusive society.


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