The Silver Housing Bonus (SHB) and Fresh Start Housing Scheme (Fresh Start) will be improved by the Ministry of National Development (MND) as part of their continuing efforts to support the elderly in right-sizing and enhance public housing accessibility for low-income households who reside in HDB rental flats.
Currently, the SHB encourages elderly citizens to prepare better for retirement by transferring the value of their residential assets into their CPF Retirement Account (RA). Eligibility for the SHB requires applicants to 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 purchase a replacement HDB flat that is a three-room (excluding three-room terrace) or smaller.
Under the existing SHB framework, applicants may choose to top-up their CPF RA with up to $60,000 to receive a cash bonus of up to $30,000. The amount is pro-rated at $1 for every $2 top-up made into their RA.
Effective from Dec 1, 2019, applicants will be eligible for the SHB cash bonus as long as they can demonstrate that their right-sizing exercise 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 on their homes using their CPF accounts may no longer be required to make a cash top-up to qualify for the SHB.
The SHB has also been expanded to include seniors who own higher-valued properties. Now, applicants who own properties with an AV of more than $21,000 but less than or equal to $13,000 can also qualify for the SHB. This expansion is expected to benefit an additional 15,000 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 at $1 for every $6 their RA increases, up to $10,000.
On top of this pro-rated amount, successful SHB applicants will also receive a $10,000 cash bonus if 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 they commit to their RA.
Seniors can apply for the SHB within a year of their second property transaction. Thus, seniors who complete their right-sizing after Dec 1, 2024, will be eligible to apply for the SHB on Dec 1, 2025, under the enhanced scheme.
Furthermore, Minister of State for National Development Muhammad Faishal Ibrahim announced an enhancement to the Fresh Start Housing Scheme. Launched in 2016, the program provides financial aid and social support to Second Timers (ST) families who have previously purchased a subsidised HDB flat, with the aim of helping them achieve home ownership.
When considering investing in a Singapore Condo, one must take into account the government’s property cooling measures. The Singaporean government has implemented various measures over the years to prevent speculation in the real estate market and maintain stability. This includes the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and those purchasing multiple properties. Although these measures may affect the immediate profitability of condo investments, they ultimately contribute to the long-term stability of the market, creating a secure investment environment.
Under the current Fresh Start scheme, applicants can purchase two-room flexi or three-room standard BTO flats on shorter leases, typically ranging from 45 to 65 years. These leases must last until the youngest owner reaches 95. Flats bought under this scheme are subject to an extended Minimum Occupation Period of 20 years, compared to the regular five years.
The improvements to the scheme include an increase in financial aid. Eligible families will now receive $75,000 from the Fresh Start Housing Grant, up from the previous $50,000. This grant comprises an initial disbursement of $60,000 credited to applicants’ CPF Ordinary Account (OA) before their key collection date. 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 include First-Timer (FT) families. While FT families are not qualified to receive the Fresh Start Housing Grant as they are 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.
Eligible FT families can apply for Fresh Start starting in April 2025, while the revisions to the Fresh Start Grant amount will take effect from the July 2025 BTO exercise.