The Ministry of National Development (MND) has made several enhancements to the Silver Housing Bonus (SHB) and Fresh Start Housing Scheme (Fresh Start) in order to support senior citizens who are in need of better housing and retirement preparation.
The Silver Housing Bonus (SHB) and Fresh Start Housing Scheme (Fresh Start) have been enhanced by the Ministry of National Development (MND) during the recent Committee of Supply debate. These improvements aim to assist senior citizens in right-sizing and provide better access to public housing for lower-income households living in HDB rental flats.
The SHB encourages senior citizens to prepare for their 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 at least 55 years old, have a monthly income not exceeding $14,000, own a property with an Annual Value (AV) of not more than $21,000, and right-size to a three-room HDB flat or smaller (excluding three-room terrace).
Previously, under the SHB framework, applicants were required to top-up their CPF RA with up to $60,000 to receive a bonus of up to $30,000 in cash. This amount was pro-rated at a $1 cash bonus for every $2 top-up made into their RA.
Starting from 1 December 2019, applicants will qualify for the SHB cash bonus by simply showing that their right-sizing exercise has resulted in a net increase in their CPF RA balance from any source, including CPF housing refunds. This means that seniors who have outstanding loans on their properties using their CPF accounts may no longer need to make a cash top-up to be eligible for the SHB.
Furthermore, seniors who own higher-valued properties (with an AV of more than $21,000 but not exceeding $13,000) will now be eligible for the SHB. This expansion will benefit an estimated 15,000 additional seniors and they will receive a cash bonus based on the amount their RA increases, up to $60,000. However, this amount will be pro-rated to a $1 cash bonus for every $6 increase in their RA, 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 bonus will not be pro-rated and will be applied regardless of the amount they commit to their RA.
Seniors can apply for the SHB within a year from their second property transaction. Therefore, seniors who have completed their right-sizing exercise from 1 December 2024 will be eligible to apply for the SHB on 1 December 2025 under the enhanced scheme.
The Fresh Start Housing Scheme, launched in 2016, provides financial assistance and social support to Second Timer (ST) families who have previously purchased a subsidised HDB flat, with the goal of helping them attain homeownership.
Under the current Fresh Start scheme, applicants can purchase two-room Flexi or three-room standard BTO flats with shorter leases of 45 to 65 years, which will last until the youngest owner turns 95. Flats purchased under this scheme are also subject to an extended Minimum Occupation Period of 20 years, compared to the usual five years.
The enhanced scheme includes increased financial support, with eligible families now receiving $75,000 from the Fresh Start Housing Grant (FHG) instead of 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 date, and the remaining $15,000 will be disbursed to their OA over the next five years to support mortgage payments.
Additionally, the eligibility criteria for the scheme have also been expanded to allow First Timer (FT) families to apply. While FT families do not qualify for the Fresh Start Housing Grant as they can still benefit from the larger Enhanced CPF Housing Grant (EHG) of up to $120,000, they can still benefit from the lower cost of shorter-lease BTO units and the social support provided under the programme.
Eligible FT families can apply for the Fresh Start scheme starting in April 2025, while the revisions to the Fresh Start Grant will take effect from the July 2025 BTO exercise.
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