HDB Eligibility & Grants: Invest vs Own Stay Guide | Homejourney
Understanding HDB eligibility schemes and grants differs sharply between own stay and investment purposes in Singapore. For own stay, first-time buyers access generous CPF grants like EHG up to $120,000 and HDB loans, while investors face stricter rules with no subsidies and higher ABSD.[1][2][3]
Homejourney prioritizes your safety by verifying HDB rules from official sources, helping you make confident decisions. This cluster dives into HDB schemes Singapore for both paths, linking to our pillar HDB Eligibility Schemes, Grants & Financing Options Guide for full coverage.
Key HDB Eligibility Schemes Explained
HDB eligibility starts with the HFE letter, valid for 9 months, assessing flat purchase, grants, and loans via Singpass on the HDB Flat Portal.[3][4] At least one applicant must be a Singapore Citizen (SC); others SC or PR. Age: 21+ (35+ for singles alone).[1]
Main schemes include:
- Public Scheme: Families forming a nucleus (spouses, children, parents). Income ceiling $14,000 ($21,000 multi-gen).[1]
- Single Singapore Citizen Scheme (SCSS): SC singles 35+ (21+ if widowed/orphaned). $7,000 ceiling for 2-room Flexi.[1][2]
- Joint Singles Scheme (JSS): 2-4 SC singles, $7,000 ceiling.[1][2]
- Non-Citizen Spouse/Orphans Schemes: Specific for mixed or sibling households.[1]
No private property ownership allowed (dispose within 6 months for BTO); max 2 prior HDB loans.[1] Use Homejourney's property search to check compliant flats.
CPF Housing Grants: Own Stay vs Investment
Own Stay buyers qualify for CPF grants to reduce costs. Key grants:
- Enhanced CPF Housing Grant (EHG): Up to $120,000 for families ($80,000 base + $40,000 if income ≤$1,500); singles up to $60,000.[2] Means-tested on income.
- Proximity Housing Grant (PHG): $20,000-$30,000 to live near parents/siblings. Not means-tested.[1]
Grants apply to BTO/resale HDB, credited to CPF. First-timers only (core applicant).[2]
Investment? No CPF grants. Investors buy resale HDB after 5-year Minimum Occupation Period (MOP) as second-timers, paying full market price + ABSD (17% for SC, 30%+ for foreigners 2026).[1] Singles under SCSS/JSS can invest post-MOP but without subsidies.
| Aspect | Own Stay (First-Timer) | Investment (Second-Timer) |
|---|---|---|
| Grants | EHG up to $120k, PHG $20-30k[2] | None[1] |
| Income Ceiling | $14k families, $7k singles[1] | N/A (resale only) |
| ABSD | 0% first residential[1] | 17-30%+[1] |
| Loan | HDB (LTV 75-90%), MSR/TDSR[3] | Bank only post-MOP, stricter LTV[3] |
Own Stay Path: Step-by-Step Actionable Guide
1. Check HFE via HDB portal: Input family details, property declarations.[3]
- Declare loan choice (HDB or bank like DBS/OCBC).[3]
- Get letter showing grant eligibility (e.g., EHG $60k for singles).[2]
- Apply BTO during launches or resale via Homejourney projects.[4]
- Meet MSR (30% income) / TDSR (55% debt).[3]
Insider tip: For Tengah BTO, families under $14k ceiling snag 4-room at ~$400k; use CPF + EHG to cover 20-30% downpayment. Check Homejourney bank rates for financing.
Investment Path: Rules and Strategies
Investors (post-MOP) buy resale HDB for rental yield (3-4% p.a. in mature estates like Toa Payoh). No grants, but leverage CPF for purchase (not ordinary account for investment).[1]
Key limits: LTV 75% max bank loan; ABSD payable upfront. Example: SC buying second HDB resale $600k pays ~$102k ABSD (17%). Foreigners: 30% + BSD.
Strategy: Target non-mature estates (e.g., Punggol) for appreciation; hold 5+ years. Homejourney verifies listings for safety—avoid unverified agents.
Financial Breakdown & Common Mistakes
Own Stay Costs (4-room BTO ~$450k): EHG $80k + PHG $20k = $100k off; HDB loan 2.6% interest. Hidden: Option fee $1-2k, stamp duty 1-3%.[3]
Investment (~$600k resale): Full cash/CPF + ABSD $100k+; rental offsets mortgage.
- Mistake 1: Ignoring income ceiling—$15k family disqualified from BTO.[1]
- Mistake 2: Buying investment pre-MOP—HDB penalties.[1]
- Red Flag: Sellers hiding overseas property (30-month rule).[1]
Disclaimer: Rules per HDB 2026; consult professionals. Homejourney ensures transparency.
Decision Framework: Own Stay or Invest?
Choose own stay if first-timer, income ≤ceiling, need subsidies. Opt investment for yield if post-MOP, high capital. Factor TDSR: Debt ≤55% income.
Pro Homejourney tip: Use our search tool for eligible flats; link aircon services post-purchase via Aircon Services ">.
FAQ
Can singles get EHG for own stay HDB?
Yes, up to $60k under SCSS for first-timer 2-room Flexi.[2]
Investment HDB: Any grants?
No CPF grants; only PHG if near family, but rare for investors.[1]
HDB eligibility for foreigners?
Non-citizen spouses via scheme for 2-room only; full foreigners resale only, high ABSD.[1]
EHG vs PHG: Which for own stay?
EHG means-tested (big for low-income); PHG flat $20-30k for proximity.[1][2]
Check HDB schemes Singapore free?
Yes, HFE letter via Singpass on HDB portal.[3][4]
Ready to act? Get your HFE today and explore verified options on Homejourney. Dive deeper in our 2026 Buying Guide. Trust Homejourney for safe property journeys.
