HDB Changes August 2024: Enhanced Housing Grant Increased, Property Cooling Measure Tightened
From 20th August 2024, there are a couple of changes made to housing grants and permissible loan amounts. Ministry of National Development (MND) and Housing Development Board (HDB) have jointly announced an increase to the amount of Enhanced CPF Housing Grant (EHG) for lower-to-middle income first-time homebuyers. At the same time, loan amounts for HDB loans have been tightened in yet another round of regulation aimed at cooling the property market.
Enhanced CPF Housing Grant (EHG) Increased
For eligible first-timer family buyers, the maximum grant amount for EHG will be increased from S$80,000 to S$120,000. The maximum EHG for eligible first-timer single homebuyers will be increased from S$40,000 to S$60,000.
The amount of EHG will depend on the average monthly income of the homebuyer, with lower incomes getting the highest amount of increase:
| Average Monthly Household Income | Current EHG For Families | Revised | Average Monthly Household Income | Current EHG For Singles | Revised |
| ≤$1,500 | $80,000 | $120,000 | ≤$750 | $40,000 | $60,000 |
| $1,501 – $2,000 | $75,000 | $110,000 | $751 – $1,000 | $37,500 | $55,000 |
| $2,001 – $2,500 | $70,000 | $105,000 | $1,001 – $1,250 | $35,000 | $52,500 |
| $2,501 – $3,000 | $65,000 | $95,000 | $1,251 – $1,500 | $32,500 | $47,500 |
| $3,001 – $3,500 | $60,000 | $90,000 | $1,501 – $1,750 | $30,000 | $45,000 |
| $3,501 – $4,000 | $55,000 | $80,000 | $1,751 – $2,000 | $27,500 | $40,000 |
| $4,001 – $4,500 | $50,000 | $70,000 | $2,001 – $2,250 | $25,000 | $35,000 |
| $4,501 – $5,000 | $45,000 | $65,000 | $2,251 – $2,500 | $22,500 | $32,500 |
| $5,001 – $5,500 | $40,000 | $55,000 | $2,501 – $2,750 | $20,000 | $27,500 |
| $5,501 – $6,000 | $35,000 | $50,000 | $2,751 – $3,000 | $17,500 | $25,000 |
| $6,001 – $6,500 | $30,000 | $40,000 | $3,001 – $3,250 | $15,000 | $20,000 |
| $6,501 – $7,000 | $25,000 | $30,000 | $3,251 – $3,500 | $12,500 | $15,000 |
| $7,001 – $7,500 | $20,000 | $25,000 | $3,501 – $3,750 | $10,000 | $12,500 |
| $7,501 – $8,000 | $15,000 | $20,000 | $3,751 – $4,000 | $7,500 | $10,000 |
| $8,001 – $8,500 | $10,000 | $10,000 | $4,001 – $4,250 | $5,000 | $5,000 |
| $8,501 – $9,000 | $5,000 | $5,000 | $4,251 – $4,500 | $2,500 | $2,500 |
| >$9,000 | NA | NA | >$4,500 | NA | NA |
Loan-to-Value (LTV) Lowered From 80% to 75%
The LTV will be lowered from 80% to 75% for HDB loans. If the valuation of the HDB is S$500,000, the maximum loan one can borrow is now S$375,000 or 75% (down from S$400,000 or 80%). There is no change for bank loans which have already been set at 75%.
Homebuyers opting for HDB loan instead of a bank loan would hence need to pay more upfront to the tune of 5% of the property value. A S$500,000 apartment would now require S$125,000 upfront, which is S$25,000 more than before. Aiming to buy a S$1,000,000 HDB? You now need S$250,000 upfront instead of the S$200,000 before this change.
The government cites increased demand and rising prices as a result of this tightening, and hopes to encourage flat buyers to borrow prudently. In their press release, MND and HDB also state that lower-income households will be less affected as they receive significant housing grants, with lower-to-middle income first-time homebuyers getting increased EHG as shown above.
Slight Tweaks to Stabilise Market and Improve Affordability
Increasing the EHG is welcomed news to first-time homebuyers especially those of lower incomes, with grant amounts increased by as much as 50%.
The decreased LTV percentage may be a slight dampener to those looking to buy, though I think this is but a minor speed bump for those who wish to own million-dollar HDBs.
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Seth Wee was a licensed financial adviser representative from 2009 to 2025, with over 16 years of experience in Singapore’s financial advisory industry.
He started Sethisfy.com in 2019 to share practical insights on credit cards, banking products, and miles strategies, helping readers identify financial products that deliver the best value. Seth has been featured in CNA, Channel 8, Today, and a host of other publications. In 2025, he was also part of a panel at CPF’s Ready For Life festival.
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