The Ministry of National Development (MND) has recently 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 continuous efforts to support senior citizens in downsizing and to improve public housing accessibility for lower-income households living in HDB rental flats.
The SHB aims to encourage senior citizens to better prepare for retirement by reallocating the value locked in their residential assets into their CPF Retirement Account (RA). Currently, eligibility for the SHB requires applicants to be aged 55 and above, with a monthly income not exceeding $14,000, an existing property with an Annual Value (AV) of $21,000 or less, and a replacement property in the form of a HDB flat sized three-room (excluding three-room terrace) or smaller.
Under the current SHB framework, applicants can opt to top-up their CPF RA with up to $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 made into their RA.
Effective from December 1st this year, applicants will be deemed eligible for the SHB cash bonus if they can prove that their downsizing exercise has resulted in a net increase in their CPF RA account balance from any source, including refunds from CPF housing. This means that seniors with outstanding loans on their properties using their CPF accounts may no longer need to make a cash top-up to qualify for the SHB.
Additionally, the SHB has been widened to include seniors who own higher-value properties. Now, applicants with properties valued at more than $21,000 but less than or equal to $13,000 will have the chance to qualify. This expansion is estimated to benefit 15,000 more seniors, according to MND’s calculations.
Such applicants will still receive a cash bonus based on the net increase in their RA, up to $60,000. However, this amount will be pro-rated to a $1 cash bonus for every $6 that their RA increases, capped at $10,000.
Furthermore, successful SHB applicants will receive an additional $10,000 cash bonus when they downsize to a two-room or smaller HDB flat, including Community Care Apartments. This amount is not pro-rated and will be applied regardless of the amount committed to their RA.
Senior citizens can apply for the SHB within a year of their second property transaction. Therefore, seniors who have completed their downsizing after December 1st, 2024 will be able to apply for the SHB on December 1st, 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 improvements to the Fresh Start Housing Scheme, which was launched in 2016. The program offers financial aid and social support to Second Timer (ST) families who have purchased a subsidized HDB flat before, 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, typically lasting from 45 to 65 years. These leases must remain valid until the youngest owner turns 95. Flats bought under this scheme are subject to an extended Minimum Occupation Period of 20 years, which is five years longer than the usual period.
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 amount of $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 still entitled to 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.
Eligible FT families can apply for the Fresh Start scheme starting from April 2025, and the revisions to the Fresh Start Grant amount will take effect from the July 2025 BTO exercise.