CALIBRATED FINANCIAL SUPPORT FOR LOWER- AND MIDDLE-INCOME
While the LTV law is targeted at high-priced selling deals, the EHG is mean-tested. Only those with less than S$ 9, 000 on a typical regular income are given the grant, with more generous provides going to those with less resources.
The lower- and middle-income people could get up to S$ 120, 000 in EHG when buying BTO cottages straight from the HDB. They will receive a maximum grant of up to S$ 230, 000, depending on their average monthly household income, when buying a resale flat of the two- to four-room type, which includes S$ 120, 000 EHG, S$ 80, 000 CPF Housing Grant ( CHG), and S$ 30, 000 Proximity Housing Grant if they live with their parents.
Unlike the last boost in CHG from S$ 50, 000 to S$ 80, 000 in February 2023, which applies equally to all first-time people when buying selling flats, the EHG grants are linked to the earnings of buyers. The EHG increases could help lower- and middle-income families protect themselves from the LTV rule change’s economic effects.
For a typical medium-income household earning S$ 5, 000 per month and eyeing a BTO flat of S$ 500, 0000, the down payment would increase by S$ 25, 000 from S$ 100, 000 to S$ 125, 000 with the reduced LTV limit. However, it did get S$ 65, 000 under the fresh EHG, more than enough to compensate the increase in over payment.  ,  ,