Details and Benefits of Enhanced AHG
The AHG is graduated to allow families with lower income to enjoy a higher grant. The details of the enhanced grant are as follows:
| Average Gross Monthly Household Income
(assessed over the past one year) |
Enhanced Additional CPF Housing Grant Quanta
(Feb 2009) |
|---|---|
| S$1,500 or less | S$40,000 |
| S$1,501 - S$2,000 | S$35,000 |
| S$2,001 - S$2,500 | S$30,000 |
| S$2,501 - S$3,000 | S$25,000 |
| S$3,001 - S$3,500 | S$20,000 |
| S$3,501 - S$4,000 | S$15,000 |
| S$4,001 - S$4,500 | S$10,000 |
| S$4,501 - S$5,000 | S$5,000 |
The enhanced AHG will make owning an HDB home within easier reach, especially for the lower-income. It helps to reduce the housing loan required for the purchase of the flat.
For instance, a family with a monthly household income of S$1,500 can comfortably own a new two-room HDB flat priced at S$90,000 based on the average selling price. With the help of the maximum AHG quantum of S$40,000, they only have a monthly mortgage instalment of about S$200. This is about 13 percent of the monthly income and can be serviced entirely from monthly CPF contributions.
To date, the AHG scheme has disbursed about S$140 million to help about 10,000 families buy their first flat. This revision is expected to benefit an additional 2,700 first-timer homebuyers each year, bringing the total benefiting households to about 8,000 per year. The beneficiaries of the AHG have also extended beyond the lower income to the middle-income families. Overall, it will almost double the estimated cost of the AHG scheme to the Singapore Government to about S$150 million per year.
Read more about this topic: Additional CPF Housing Grant
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