HDB's Proximity Housing Grant (PHG) for resale flats: All you need to know

All hail HDB’s Proximity Housing Grant (PHG) — the government’s way of encouraging Singaporeans to stay close to their families and maintain a robust intergenerational support system!

Here’s the basics about the PHG. The PHG is a CPF housing grant of up to $30,000, and it’s for buying HDB resale flats only.

Two types of buyers can benefit: Those who want to live with their parents/children in an HDB resale flat, and those who want to buy an HDB resale flat near their parents/children.

The PHG doesn’t just mean your resale flat will get subsidised. Some actual perks to multi-generational living or living close to your family include frequent get-togethers (very Modern Family vibes), the ease of bringing elderly parents to doctor appointments and a peace of mind that an emergency babysitter is close by.

Okay, let’s jump into the details of the PHG.

A brief backgrounder on the Proximity Housing Grant (PHG)

The PHG was launched in 2015 and has since helped over 30,000 households. In 2018, the criteria for PHG was revised to allow more Singaporeans to benefit from this grant. It is now more inclusive and generous.

• More $: The maximum grant amount for those living with their parents/children in the same HDB flat is now $30,000, up from $20,000. Those living near their parents/children will receive $20,000 in grants — this is unchanged.
• Singles welcome: The PHG is also available for singles buying an HDB resale flat. Single applicants will receive half the grant amount that a couple would: $10,000 if they live near their parents/children, and $15,000 if they live with their parents/children (up from $10,000).
• Wider radius: The PHG is now available when buying a resale flat within a 4km radius of the family’s HDB flat or private property address. Previously, the maximum distance was a 2km radius or within the same HDB town — a condition that many buyers found limiting.*

*Note that an HDB flat in the same town but further than 4km from the other house won’t qualify for the PHG. (Read on to find out how to check the distance between the two houses!)

Here’s our handy infographic that sums up HDB’s Proximity Housing Grant (PHG).

 

 

What are the conditions to be eligible for the Proximity Housing Grant (PHG)?

• You are a Singapore Citizen aged at least 21 years old.
• For a family/couple nucleus, the other applicant must be a Singapore Permanent Resident or a Singapore Citizen.
• If you’re single, you must be at least 35 years old, applying under the Single Singapore Citizen Scheme, Joint Singles Scheme and Public Scheme (if your parents are included in the application as co-applicants or occupants).
• For those with a non-Singaporean spouse, as long as you are at least 21 years old and applying under the Non-Citizen Spouse Scheme, you are eligible too. However, the grant amount you get will be similar to singles.
• You must be buying an HDB resale flat. And the flat must be a two-room flat or larger and have a remaining lease of at least 20 years. PHG isn’t for BTO flats!
• The house your parents/children are living in can be an HDB flat or private residential property (e.g. condo, landed home). For private properties, your parents/children must be living in it (i.e. owner-occupiers). The property must also be owned by your parents/children (which can include your children or adopted children, parent(s)-in-law or immediate family members such as your siblings).
• There is no income ceiling on the PHG. Hurrah!
• Both first-time homebuyers and second-time homebuyers are eligible.
• You will only be able to receive the PHG once in your lifetime. If you have received the PHG previously, you won’t be eligible again.

How do I check if a flat qualifies for Proximity Housing Grant (PHG)?

Okay, so what is a 4km radius exactly? HDB has set up a Distance Enquiry e-service that lets you check if the HDB resale flat you have in mind is within 4km of your children/parent’s home. Simply key in the postal codes of both properties. Here’s us keying in the postal code of two HDB flats in the east.

There’s also a search function in HDB’s Map Services. While looking at the housing information for a particular HDB address, you can select "Distance Enquiry for Proximity Housing Grant" in the right navigation menu to check which blocks of flats are included within a 4km radius.

BUT the HDB Map Search doesn’t show you which units are currently for sale.

So, if you’re looking to buy an HDB resale flat within 4km of your parent/children, the most straightforward way is to head to property portal 99.co, type in that home’s address or postal code and hit "Search".

Once you do that, you’ll be taken to a results screen with a map view. If you’re accessing 99.co using desktop, point your cursor to the red nub on the right edge of the radius and drag it outwards to its maximum 4,000m (i.e. 4km). This is their very own Radius Search Filter for the Proximity Housing Grant!

If you’re using the app version of 99.co, you can hit the "Filters" button, where you can then set the search radius to 4,000m (i.e. 4km) and access a whole lot of other filters to narrow down your search for your dream home.

Do I have to return or pay back the Proximity Housing Grant (PHG)?

A misconception about CPF housing grants, including the PHG, is that they are free. Well, unless you plan to stay in the same house forever — which is unlikely as families grow/shrink overtime — you’ll need to refund the grants you’ve taken when you sell your flat.

This refund comprises the principal amount of grants you’ve received and any CPF monies used for the house (such as downpayment and monthly instalments). Plus the accrued interest of 2.5 per cent on these. Accrued interest is the amount of interest your grant could have earned if it had stayed in your CPF Ordinary Account untouched.

READ ALSO: HDB grants guide 2022: What's the max CPF housing grant you can get?

The money will have to be refunded back into your CPF OA*. And it comes from the proceeds from selling your current flat.

However, the good news is that the amount returned to your CPF OA may be used to buy your next home.

*Note that if you’ve also taken the AHG, SHG or EHG in addition to the PHG, only a maximum of $60,000 from these grants will go back into your CPF OA when you sell your flat. The excess will be put into your CPF Special Account/Retirement Account and Medisave Account.

Am I really living near my parents?

In the Pasir Ris and Tampines examples above, the two flats ­are a short bus ride and walk apart.

However, not all flats within 4km of each other are well-connected. If travelling time between the two homes is an important consideration, narrow down your search for an HDB resale flat using the "Search by Travel Time" feature on 99.co. Choose a travel time (via public transport) that you are comfortable with, say, 20 minutes.

In the search results, you’ll see homes that are within a 20-minute bus or MRT ride away from your indicated address. The "Search by Travel Time" function can help you find the ideal resale flats within the 4km PHG radius.

What other grants can I be eligible for?

Other grants available for buyers of HDB resale flats include:

For singles

• Singles Grant: Those aged 35 and above may receive $25,000 for two to four-room flats and $20,000 for five-room flats.
• Enhanced CPF Housing Grant (EHG) for Singles: Those aged 35 and above may receive grants from $2,500 to $40,000 based on their average monthly income.

Check out our guide for more details on the grants available for singles.

For first-time applicants (couples/families)

• Enhanced CPF Housing Grant (EHG) for couples/families: Applicants may receive grants from $5,000 to $80,000 based on their average household income.
• Family Grant: Married first-time applicants may receive grants from $30,000 to $50,000 based on the size of the flat and citizenship.

For second-time applicants

• Step-Up CPF Housing Grant: Second-timer applicants may receive a $15,000 grant based on the current and future flat types.

For first-time and second-time couple applicants

• Half-Housing Grant: Reserved for first-time applicants whose spouse/fiance has previously received a housing subsidy. Applicants may receive $25,000 for two to four-room flats and $20,000 for five-room or bigger flats.

For newly-married singles

• Top-Up Grant: Reserved for those who had previously received a Singles Grant but are now married, as well as those who had previously received a Singles Grant under the Non-Citizen Spouse Scheme but whose spouse (or child) is now a Singapore Citizen. The amount is dependent on how much you have previously received.

Read our guide (with infographic) on HDB grants for couples for more info.

Good luck with your home search!

READ ALSO: Quick guide to BTO and resale HDB grants for couples

This article was first published in 99.co.