Paper 2 · HDB Policies
CPF Housing Grants & the HDB Resale Process
Must-know for the exam
- CPF housing grants offset the purchase price for eligible buyers, subject to income ceilings and citizenship; first-timers receive far more than second-timers.
- The Enhanced CPF Housing Grant (EHG) gives first-timer families up to $120,000 (2026, raised at NDR 2024) for BTO or resale, with a $9,000/mth income ceiling.
- First-timer families buying resale also get the CPF Housing (Family) Grant of $80,000 (2–4 room) or $50,000 (5-room+), ceiling $16,000 from 24 Aug 2026; grants stack to $230,000 with EHG and PHG.
- The Proximity Housing Grant (PHG) pays $20,000 for living within 4 km of parents or children and $30,000 for living together (singles half), with no income ceiling.
- A first-timer + second-timer couple has EHG and Family Grant halved; two second-timers get only Step-Up and pay a resale levy on a second subsidised flat; first-timers pay none.
- From 9 May 2023 resale buyers need a valid HDB Flat Eligibility (HFE) letter (valid 6 months) when the seller grants the OTP; it replaced the Intent to Buy.
- The seller's Intent to Sell
Two practical topics close out the HDB rulebook: the grants that make a flat affordable, and the resale process — which runs very differently from a private sale.
CPF housing grants
Eligible buyers — especially first-timers — can receive CPF housing grants to offset the purchase price, subject to income ceilings and citizenship. First-timers receive far more than second-timers. Current (2026) headline amounts:
| Grant | Who it's for | Amount (2026) | Income ceiling |
|---|---|---|---|
| Enhanced CPF Housing Grant (EHG) | First-timer families — BTO or resale | Up to $120,000, scaled to income (max at ≤ $1,500/mth) | $9,000/mth |
| EHG (Singles) | First-timer singles, 35+ | Up to $60,000 | $4,500/mth |
| CPF Housing (Family) Grant | First-timer families buying resale | $80,000 (2–4 rm) · $50,000 (5 rm+) | $16,000 ($24,000 extended family), from 24 Aug 2026 |
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Practise exam-style questions on HDB Policies — with instant answers and explanations.
Practise HDB Policies questions →Exam-style questions on this topic
- RES exam question on HDB Policies: HDB CPF Housing Grants
- RES exam question on HDB Policies: A household that previously enjoyed a housing subsidy buys a second subsidised flat
- RES exam question on HDB Policies: Lin (SC) and her husband (also SC) purchase a 4-room HDB resale flat for $520,000 using…
- RES exam question on HDB Policies: net cash proceeds after repaying the mortgage and refunding CPF
- RES exam question on HDB Policies: Mr and Mrs Lee are selling their HDB flat
Common questions
- Who qualifies for CPF housing grants?
- Eligibility depends on factors such as first-timer status, citizenship and household income ceilings. First-timers generally receive more than second-timers, and amounts are revised by the government from time to time.
- Is the HDB option to purchase the same as a private OTP?
- No. HDB resale uses its own option-to-purchase form and process through the HDB Resale Portal, with different option fee and timing rules from a private property OTP.
- What is the HDB Flat Eligibility (HFE) letter?
- From 9 May 2023 the HFE letter replaced the old "Intent to Buy" registration for flat buyers. It confirms your eligibility to buy, the housing grants you qualify for and your loan options upfront, is valid for 6 months, and must be valid when the seller grants you the OTP. Note the mirror-image step on the other side: the seller registers an Intent to Sell (valid 12 months), which must have been registered at least 7 days before they may grant an OTP.
- Do second-timer buyers pay a resale levy?
- Generally yes. A buyer who previously enjoyed a housing subsidy pays a resale levy when buying a second subsidised flat, and receives smaller or no grants. First-timers do not pay a resale levy.
- What is COV (Cash Over Valuation) and how is it paid?
- COV is the amount by which the agreed resale price exceeds HDB's market valuation of the flat. It must be paid in cash — no housing loan covers it and CPF cannot be used for it — because the loan and CPF are computed on the lower of the resale price or the valuation, never the higher. Since HDB revised the resale procedure in March 2014 the price is agreed first and the Request for Value is only submitted after the OTP is granted, so a buyer commits to a price before knowing the valuation and should keep cash headroom. Housing grants do not help: they turn on eligibility and income, not on the valuation. Confirm the current procedure with HDB.
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