The Ministry of National Development (MND) has recently announced updates to 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 continuous efforts to support senior citizens in downsizing and improve access to public housing for low-income households living in HDB rental flats.
The Silver Housing Bonus (SHB) aims to encourage senior citizens to better plan for their retirement by unlocking the value of their residential properties and transferring it into their CPF Retirement Account (RA). At present, applicants must be 55 years old or above, have a monthly income not exceeding $14,000, own a property with an Annual Value (AV) not exceeding $21,000, and plan to downsize to an HDB flat that is three-room (excluding three-room terrace) or smaller.
Currently, eligible applicants can receive a cash bonus of up to $30,000 by topping up their CPF RA with a maximum of $60,000. This amount is pro-rated at a rate of $1 cash bonus for every $2 top-up made into their RA.
Effective from 1 December 2020, applicants will qualify for the SHB cash bonus if they can show that their downsizing has resulted in an increase in their CPF RA balance from any source, including housing refunds from CPF. This means that seniors with outstanding loans using their CPF accounts may no longer need to make a cash top-up to be eligible for the SHB.
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Additionally, the SHB has been extended to include seniors who own properties with a higher AV, between $21,000 to $13,000. This will benefit an estimated 15,000 more seniors. However, the cash bonus for these applicants will be pro-rated at a rate of $1 for every $6 their RA increases, up to $10,000. On top of this, successful SHB applicants will receive a non-pro-rated cash bonus of $10,000 when they downsize to a two-room or smaller HDB flat (including Community Care Apartments).
Seniors can apply for the SHB within a year of their second property transaction. For instance, those who complete their downsizing after 1 December 2024 can apply for the enhanced SHB on 1 December 2025.
Expanding the Fresh Start Housing Scheme
Minister of State for National Development Muhammad Faishal Ibrahim has announced enhancements to the Fresh Start Housing Scheme, which was launched in 2016. The program provides financial assistance and social support to Second Timer (ST) families who have previously purchased a subsidised HDB flat, with the aim of helping them become homeowners.
Under the current scheme, applicants can purchase two-room flexi or three-room standard BTO flats with shorter leases typically ranging from 45 to 65 years. These leases must last until the youngest owner turns 95. Furthermore, these flats have an extended Minimum Occupation Period of 20 years, compared to the usual five years.
The updates to the scheme include increased financial support, with eligible families now receiving $75,000 from the Fresh Start Housing Grant, up from $50,000 previously. The new grant consists of an initial disbursement of $60,000 credited to the applicant’s CPF Ordinary Account (OA) before the key collection date. The remaining $15,000 will be disbursed to the OA over the next five years to help with mortgage payments.
The eligibility criteria have also been expanded to include First Timer (FT) families. While FT families are not eligible for the Fresh Start Housing Grant as they are eligible for the larger Enhanced CPF Housing Grant (EHG) of up to $120,000, they can still take advantage of the reduced cost of shorter-lease BTO units and the social support provided by the program.
Eligible FT families can start applying for Fresh Start in April 2025, while the revisions to the Fresh Start Grant amount will take effect from the July 2025 BTO exercise.