The Ministry of National Development (MND) announced enhancements to the Silver Housing Bonus (SHB) and the 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 right-sizing and to improve public housing access for lower-income households in HDB rental flats.
The SHB incentivises senior citizens to better prepare for retirement by reallocating the value locked in their residential assets into their CPF Retirement Account (RA).
Currently, to be eligible for the SHB, applicants must be aged 55 and above, their monthly income must not exceed $14,000, their existing property must not exceed an Annual Value (AV) of $21,000 and their replacement property must be a HDB flat sized three-room (excluding three-room terrace) or smaller.
Under the current SHB framework, applicants may choose to top-up their CPF RA with up to $60,000 to receive a bonus of up to $30,000 cash. This amount is pro-rated at a $1 cash bonus for every $2 top-up made into their RA.
With effect from Dec 1 of this year, applicants will be eligible for the SHB cash bonus so long as they prove that their right-sizing exercise had resulted in a net increase to their CPF RA account balance from any source, including from CPF housing refunds.
The change effectively means that seniors with outstanding loans on their residences using 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 SHB. Now, applicants who own properties with an AV of more than $21,000 but less or equal to $13,000 can qualify. This expansion will affect 15,000 additional seniors, according to MND’s estimation.
Such applicants will still receive a cash bonus based on the amount their RA increases, up to $60,000. However, the amount will be pro-rated to a $1 cash bonus for every $6 their RA increases, up to $10,000.
In addition to the pro-rated amount, successful SHB applicants will receive a $10,000 cash bonus when they right-size to a two-room or smaller HDB flat (including Community Care Apartments). This sum is not pro-rated and will apply regardless of the amount committed to their RA.
Seniors can apply for the SHB within a year of their second property transaction. Thus, seniors who have completed their right-sizing after Dec 1, 2024, are eligible to apply for SHB on Dec 1, 2025, under the enhanced scheme.
Fresh Start Housing scheme expanded
Minister of State for National Development Muhammad Faishal Ibrahim has announced an enhancement to the Fresh Start Housing Scheme. Launched in 2016, the programme offers financial assistance and social support to Second Time (ST) families residing in HDB rental properties, with the aim of helping them attain homeownership.
Under the current Fresh Start scheme, applicants can purchase two-room flexi or three-room standard BTO flats on shorter leases, typically ranging from 55 to 65 years. These leases will last until the youngest applicant turns 95. Properties acquired under this scheme are subject to an extended Mandatory Occupancy 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, up from the previous $50,000.
The new grant consists of an initial disbursement of $60,000 credited to applicants’ CPF Ordinary Account (OA) before their key collection dates. 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 Time (FT) families to apply. While FT families are ineligible to benefit from the Fresh Start Housing Grant as they are still eligible for the larger Enhanced Housing Grant (EHG) of up to $120,000, FT families will still benefit from the reduced cost of shorter-lease BTO units and the social support provided under the program.
Eligible FT families can apply to Fresh Start starting in April 2025, while the revisions to the Fresh Start Grant amount will take effect from the July 2025 BTO exercise.
