To help more middle-income families afford a bigger flat, the Housing Board has raised the income limit for first-timers applying for the Special Housing Grant (SHG).

The income limit will now be $6,500, a sharp increase from the previous $2,250.

This will give a financial boost of up to $20,000 for those who choose four-room flats in non-mature estates. Previously, the grant was targeted mainly at low-income households going for three-room flats in similar areas.

The new details were announced by National Development Minister Khaw Boon Wan on Tuesday.

Two other tweaks will also apply to those who applied for flats in the most recent Build To Order (BTO) exercise in July.

The first is the Step Up Grant of $15,000, which will help low-income families living in two-room homes to upgrade to three-room flats. The sum will be credited into the buyers' CPF account when the three-room flat is sold

The other is that singles who earn up to $3,250 a month, instead of the current income cap of $1,125, can now also get the SHG when they apply for two-room flats on their own.