The Ministry of National Development (MND) recently announced improvements to both the Silver Housing Bonus (SHB) and the Fresh Start Housing Scheme (Fresh Start) during the Committee of Supply debate. These changes are part of the government’s ongoing efforts to support seniors in downsizing and to increase access to public housing for lower-income households living in HDB rental flats.
The SHB encourages seniors to better prepare for their retirement by unlocking the value of their residential assets and transferring it to their CPF Retirement Account (RA). Currently, applicants must be 55 years old or above, have a monthly income of no more than $14,000, own a property that does not have an Annual Value (AV) exceeding $21,000, and purchase a three-room HDB flat or smaller (excluding three-room terraces) as their replacement property.
Currently, SHB applicants have the option to top-up their CPF RA with up to $60,000 to receive a cash bonus of up to $30,000. This amount is prorated at a rate of $1 cash bonus for every $2 top-up made into their RA.
Effective from December 1st of this year, SHB applicants will be eligible to receive the cash bonus as long as they can prove that their downsizing resulted in a net increase in their CPF RA account balance from any source, including CPF housing refunds. This means that seniors with outstanding loans using their CPF accounts may no longer have to make a cash top-up to qualify for the SHB.
The SHB has also been expanded to allow more seniors who own properties with higher values to qualify. Now, applicants who own properties with an AV of more than $21,000 but less than or equal to $13,000 can also qualify. This expansion will benefit an estimated 15,000 more seniors, according to MND.
These eligible applicants will receive a cash bonus based on the amount their RA increases, up to $60,000. However, this amount will be prorated to $1 cash bonus for every $6 their RA increases, up to $10,000.
Additionally, 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 amount is not prorated 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. This means that seniors who complete their downsizing after December 1, 2024, can apply for the SHB on December 1, 2025, under the enhanced scheme.
Expansion of Fresh Start Housing Scheme
Minister of State for National Development Muhammad Faishal Ibrahim has announced enhancements to the Fresh Start Housing Scheme. Launched in 2016, the program offers financial assistance and social support to Second Timer (ST) families who have previously purchased a subsidized HDB flat, with the aim of helping them achieve homeownership.
Under the current Fresh Start scheme, applicants can purchase a two-room flexi or a three-room standard BTO flat with shorter leases, typically ranging 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.
The 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 Timer (FT) families to apply. While FT families are not eligible to receive the Fresh Start Housing Grant as they are already eligible for the larger Enhanced CPF Housing Grant (EHG) of up to $120,000, they will still benefit from the reduced cost of shorter-lease BTO units and the social support provided under the program.
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Eligible FT families can apply for Fresh Start starting in April 2025, while the revised Fresh Start Grant amount will take effect from the July 2025 BTO exercise.