Answer: The Ministry of National Development (MND) has recently announced updates and improvements to the Silver Housing Bonus (SHB) and Fresh Start Housing Scheme (Fresh Start) during the annual Committee of Supply debate. These changes aim to assist senior citizens in right-sizing and make public housing more accessible for lower-income households living in HDB rental flats.
The SHB encourages senior citizens to plan for retirement by converting the value of their housing assets into their CPF Retirement Account (RA). Currently, to qualify for the SHB, applicants must be aged 55 and above, have a monthly income under $14,000, own a property with an Annual Value (AV) below $21,000, and downsize to a HDB flat sized three-room or smaller (excluding three-room terrace).
Presently, applicants who opt to top-up their CPF RA by up to $60,000 can receive a maximum cash bonus of $30,000. This bonus is pro-rated at $1 for every $2 top-up made into the RA. However, starting from December 1, 2019, applicants will be eligible for the SHB cash bonus if they can prove that their right-sizing efforts have resulted in a net increase to their CPF RA balance from any source, including from CPF housing refunds. 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.
The SHB has also been expanded to allow seniors who own higher-value properties to qualify. Under the new criteria, applicants who own properties with an AV between $21,000 and $13,000 can also be eligible. This change is estimated to benefit approximately 15,000 more seniors. These applicants will still receive a cash bonus based on the increase in their RA, up to $60,000. However, the bonus will be pro-rated at $1 for every $6 increase in their RA, up to $10,000. In addition to 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 amount is not pro-rated and will apply regardless of the top-up amount made to the RA.
Seniors can apply for the SHB within one year of their second property transaction. Under the enhanced scheme, seniors who complete their right-sizing after December 1, 2024, can apply for SHB on December 1, 2025.
Furthermore, Minister of State for National Development Muhammad Faishal Ibrahim announced an enhancement to the Fresh Start Housing Scheme, which was launched in 2016. This program offers financial assistance and social support to Second Timers (ST) families who have previously purchased a subsidised HDB flat, with the goal of helping them own a home.
Under the current Fresh Start scheme, applicants can buy 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, and the flats are subject to an extended Minimum Occupation Period of 20 years, compared to the usual five years.
The updates 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. This grant includes an initial disbursement of $60,000 credited to the applicants’ CPF Ordinary Account (OA) before their key collection dates, with the remaining $15,000 disbursed to their OA over the next five years to assist with mortgage payments.
Additionally, the eligibility criteria for the Fresh Start scheme have been expanded to include First-Timer (FT) families. Although FT families are not eligible for the Fresh Start Housing Grant, they can still benefit from the reduced cost of shorter-lease BTO units and the social support provided by the program. Eligible FT families can apply for Fresh Start starting in April 2025, while the changes to the Fresh Start Grant amount will take effect from the July 2025 BTO exercise.