The Ministry of National Development (MND) has announced improvements to the Silver Housing Bonus (SHB) and Fresh Start Housing Scheme (Fresh Start) during this year’s Committee of Supply debate. These changes are part of the government’s ongoing efforts to support senior citizens in downsizing and to increase public housing access for low-income households who live in HDB rental flats.
The SHB encourages senior citizens to better prepare for retirement by unlocking the value of their residential assets and transferring it into their CPF Retirement Account (RA). Currently, to be eligible for the SHB, applicants must be at least 55 years old, have a monthly income of no more than $14,000, own a property with an Annual Value (AV) of no more than $21,000, and their replacement property must be a HDB flat with three rooms or less (excluding three-room terraces).
Under the current SHB framework, applicants can choose to top up their CPF RA with a maximum of $60,000 to receive a cash bonus of up to $30,000. This amount is pro-rated at a rate of $1 cash bonus for every $2 top-up into their RA.
Starting from December 1 of this year, applicants will be eligible for the SHB cash bonus as long as they can prove that their downsizing exercise has resulted in a net increase in their CPF RA account balance from any source, including CPF housing refunds. This change means that seniors with outstanding loans on their properties who use their CPF accounts may no longer need to make a cash top-up to qualify for the SHB.
The SHB has also been expanded to allow seniors who own higher-valued properties to qualify for the scheme. Under the new criteria, applicants who own properties with an AV of more than $21,000 but less than or equal to $13,000 can now qualify. This expansion is estimated to benefit 15,000 additional seniors, according to MND.
For these eligible applicants, the cash bonus will still be based on the amount their RA increases, up to a maximum of $60,000. However, the amount will be pro-rated at a rate of $1 cash bonus for every $6 increase in their RA, capped at $10,000.
In addition to the pro-rated amount, successful SHB applicants will receive a $10,000 cash bonus when they downsize to a two-room or smaller HDB flat (including Community Care Apartments). This sum will not be pro-rated and will be applicable regardless of the amount committed to their RA.
Seniors can apply for the SHB within a year of their second property transaction. This means that seniors who have completed their downsizing after December 1, 2024, are eligible to apply for the SHB on December 1, 2025, under the enhanced scheme.
Fresh Start Housing scheme expanded
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Minister of State for National Development Muhammad Faishal Ibrahim has announced an enhancement to the Fresh Start Housing Scheme. Launched in 2016, the programme provides financial assistance and social support to Second Timers (ST) families who have previously purchased a subsidised HDB flat, with the aim of helping them achieve homeownership.
Under the current Fresh Start scheme, applicants can purchase two-room flexi or three-room standard BTO flats on shorter leases, which typically range from 45 to 65 years. These leases must last until the youngest owner turns 95. Flats purchased under this scheme are subject to an extended Minimum Occupation Period of 20 years, compared to the usual five years.
Enhancements to the scheme include increased financial support. Eligible families will now receive $75,000 from the Fresh Start Housing Grant, an increase from the previous amount of $50,000.
The new grant will consist of an initial disbursement of $60,000 credited to the applicants’ CPF Ordinary Account (OA) before they receive their keys. The remaining $15,000 will be disbursed to their OA over the next five years to support mortgage payments.
The eligibility criteria for the scheme have also been expanded to allow First-Timer (FT) families to apply. While FT families are not eligible to receive the Fresh Start Housing Grant as they are still eligible for the larger Enhanced CPF Housing Grant (EHG) of up to $120,000, they will still benefit from the reduced cost of purchasing shorter-lease BTO units and the social support provided under the scheme.
Eligible FT families can begin applying for Fresh Start starting in April 2025, and the revised Fresh Start Grant amount will take effect from the July 2025 BTO exercise.