The HDB Proximity Housing Grant (PHG) is one of the CPF Housing Grants that you can qualify for even if you are no longer first-time HDB buyer and have utilised HDB Housing Grants in the past. It was introduced to support families who want to buy a resale flat to live with or close to each other.
Younger families who want to buy a resale flat to live near or with their parents can qualify for the PHG. Alternatively, their parents can also qualify for the PHG if they buy a resale flat to live near or with their married child/single child.
#1 Living Within 4Km Of Your Parents/Child Place – $20,000 ($10,000 for Singles)
To qualify for the Proximity Housing Grant (PHG), you need to buy an HDB resale flat within 4km where your parents or child live. It doesn’t matter if your parents/child is living in an HDB flat or private property, as long as it’s within a 4km vicinity.
It’s worth noting that your parents/child do not need to own the property as long as they are living in it as an essential occupier.
The HDB application form for the PHG states that your ‘parent or married child or single child’ has to be the ‘owner or occupiers of an HDB flat or DBSS flat; an Executive Condominium unit; or a private residential property; or tenants or occupiers of an HDB rental flat.’
Source: HDB
However, on the HDB website, it does state that if the parents/child do not own the private residential property, it must be owned by their immediate family members. You can’t just rent a private property in the vicinity of your intended HDB purchase, and then be eligible for the PHG.
Source: HDB
If you are buying a resale flat near your parents/child, you will receive a grant of $20,000.
As mentioned in a previous article, the PHG is a CPF housing grant, so the funds will be first credited to your CPF Ordinary Account (OA), before being used to pay for the down payment of your HDB flat.
You can use HDB’s Distance Enquiry for Proximity Housing Grant to check if the resale flat you are looking at is within 4km of where your parents/child live in.
Read Also: 4 Common Misconceptions About CPF Housing Grants That We Need To Understand Correctly
#2 Living With Your Parents/Child – $30,000
If you are buying a resale flat to live with your parents/child, you are eligible for the Proximity Housing Grant (PHG) of $30,000. For example, if you and your spouse are buying a resale flat, and at least one of your parents intend to live with you, you will get $30,000 in grant monies.
Do note that if parents are the ones buying a flat to live with, or to live near their child, and their child is not married, the child must be at least age 35 or above. You can’t get the PHG by claiming that you will be living with your (21-year-old) single child.
Utilisation Of The Proximity Housing Grant
Every Singapore household can use the Proximity Housing Grant (PHG) once.
For first-time homeowners, the PHG can be used in conjunction with other housing grants. If you are a first-time homeowner buying an HDB resale flat, you may be eligible for the Family Grant and the Enhanced CPF Housing Grant, in addition to the PHG.
For example, if your household income is $6,000 a month and you buy a 4-room resale flat, you would already enjoy $35,000 in Enhanced CPF Housing Grant and $50,000 in Family Housing Grant. If you apply for the PHG ($20,000) to live near your parents, you will enjoy a total of $105,000 in housing grants.
If you are a single who is above 35, and buying a resale flat near your parents, or to live with them, you are also eligible for the PHG. However, you will only receive half of the usual amount. This means getting $10,000 if you live near your parents, and $15,000 if you intend to live with your parents.
Read Also: 35 And Single? Here Are HDB Housing Options Available For You
Using The Proximity Housing Grant (PHG) Just Because You Qualify For It Shouldn’t Be Automatic Decision
It’s normal to think that as long as we qualify for the PHG, we should apply for it. After all, who wouldn’t want additional grants for their homes?
At the same time, we need to be mindful of what the PHG is for, which is to support extended families who want to live near, or with one another.
As part of the PHG requirements, households that receive the PHG must keep to the proximity rule for at least 5 years. This also coincides with the Minimum Occupancy Period (MOP) of the resale HDB flat that was bought.
This means that the parents/child whose existing home was used in the application for the PHG will not be able to move beyond the 4km proximity in the next 5 years. However, they can still move homes or buy a new place as long as it’s within 4km of where their child/parents live.
If your parents/child have intention to move out, you should consider whether or not to apply for the PHG as this could also impact their future plans. Do note that your parents/child have to consent to this as well.
Read Also: Guide To Housing Grants For First-timers
This article was first published on 4 September 2020 and was updated to include the latest information.
The post Guide To Understanding The HDB Proximity Housing Grant (PHG) appeared first on DollarsAndSense.sg.
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