The Ministry of National Development (MND) has recently announced updates to the Silver Housing Bonus (SHB) and Fresh Start Housing Scheme (Fresh Start) during this year’s Committee of Supply debate. These changes aim to support senior citizens in their retirement and improve access to public housing for lower-income families living in HDB rental flats.
The SHB encourages senior citizens to plan for their retirement by unlocking the value of their residential property and transferring it into their CPF Retirement Account (RA). Currently, 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 no more than $21,000 and purchase a smaller HDB flat, specifically a three-room or smaller (excluding three-room terrace).
In Singapore, investing in condos is a popular choice, but it is important to consider the government’s property cooling measures. The Singaporean government has implemented several measures over the years to control speculative buying and maintain a steady real estate market. These measures include the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and individuals purchasing multiple properties. While these measures may affect the short-term profitability of condo investments, they also contribute to the long-term stability of the market, creating a secure investment environment. Therefore, when considering a Singapore Condo, it is crucial to take into account the impact of government regulations.
Under the current SHB scheme, applicants can choose to top-up their CPF RA with up to $60,000 to receive a cash bonus of up to $30,000. This payout is calculated at a rate of $1 for every $2 top-up made into the RA.
Starting from December 1 of this year, applicants will be eligible for the SHB cash bonus as long as they can demonstrate an increase in their CPF RA account balance from any source, including CPF housing refunds. This means that seniors with outstanding loans on their property paid 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 include seniors owning higher-valued properties. Now, applicants who own properties with an AV of more than $21,000 but no more than $13,000 can also be eligible. This extension will benefit an estimated 15,000 more seniors, according to MND.
These applicants will still receive a cash bonus based on the amount their RA increases, up to $60,000. However, the rate will be adjusted to $1 for every $6 increase in their RA, with a maximum bonus of $10,000. On top of this, 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 will not be pro-rated and will apply regardless of the top-up amount made to their RA.
Seniors can apply for the SHB within a year of their second property transaction. This means that those who have completed their downsizing process after December 1, 2024, can apply for the SHB under the enhanced scheme on December 1, 2025.
Fresh Start Housing Scheme Expanded
Minister of State for National Development Muhammad Faishal Ibrahim has announced enhancements to the Fresh Start Housing Scheme, which was first introduced in 2016. The scheme provides financial aid and social support to Second Timers (ST) families who have previously bought a subsidised HDB flat, with the goal of helping them achieve homeownership.
Under the current Fresh Start scheme, ST families can purchase a two-room flexi or three-room standard BTO flat with shorter leases, typically ranging from 45 to 65 years. These leases must be until the youngest owner turns 95. Flats bought under this scheme are subject to an extended Minimum Occupation Period of 20 years, compared to the usual five years.
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 $50,000.
This new grant will consist of an initial payout of $60,000 credited to the 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 assist with mortgage payments.
The eligibility criteria for the scheme have also been broadened to include First-Timer (FT) families. While FT families are not eligible 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 reduced cost of shorter-lease BTO units and the social support provided under the scheme.
Eligible FT families can apply for the Fresh Start scheme starting in April 2025, while the revisions to the Fresh Start Grant amount will take effect from the July 2025 BTO exercise.