Cos 2025 Mnd Enhances Silver Housing Bonus And Fresh Start Scheme
The Ministry of National Development (MND) has announced improvements to the Silver Housing Bonus (SHB) and the Fresh Start Housing Scheme (Fresh Start) in this year’s Committee of Supply debate. These enhancements are part of the government’s continual efforts to assist elderly citizens in downsizing their homes and increase access to public housing for lower-income families living in HDB rental flats.
The SHB encourages elderly citizens to better plan for their retirement by allowing them to transfer the value of their residential assets into their CPF Retirement Account (RA). Presently, individuals must be 55 years old or above, have a monthly income of less than $14,000, own a property with an Annual Value (AV) of less than $21,000, and purchase a new three-room HDB flat (excluding three-room terraces) or smaller in order to be eligible for the SHB.
At present, 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 amount is calculated as $1 cash bonus for every $2 that is deposited into their RA.
From December 1 of this year, SHB applicants will be eligible for the cash bonus as long as their downsizing exercise results in an increase in their CPF RA account balance from any source, including refunds from CPF housing payments. This means that elderly individuals with outstanding loans on their properties using their CPF accounts may no longer need to make a cash top-up in order to qualify for the SHB.
The SHB has also been expanded to allow individuals who own higher-valued properties to qualify for the scheme. Applicants who own properties with an AV of more than $21,000 but less than or equal to $13,000 can now apply for the SHB. This expansion is expected to benefit an additional 15,000 seniors, according to MND’s estimates.
These applicants will still receive a cash bonus based on the increase in their RA, up to a maximum of $60,000. However, the amount will be calculated as $1 cash bonus for every $6 that their RA increases, up to a maximum of $10,000.
In addition to this pro-rated amount, successful SHB applicants will receive a $10,000 cash bonus when they downsize to a two-room or smaller HDB flat (including Community Care Apartments). This sum is not pro-rated and will be given regardless of the amount deposited into their RA.
Individuals can apply for the SHB within a year of their second property transaction. This means that those who complete their downsizing exercise after December 1, 2024, can apply for the SHB on December 1, 2025, under the enhanced scheme.
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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 launched in 2016. The programme provides financial aid and social support to Second-Timer (ST) families who have previously bought a subsidised HDB flat, with the goal of helping them become homeowners.
Under the current scheme, applicants can purchase shorter-lease two-room flexi or three-room standard BTO flats, with lease lengths typically ranging from 45 to 65 years. These leases must last until the youngest owner reaches the age of 95. Flats bought under this scheme are subject to a prolonged Minimum Occupation Period of 20 years, compared to the usual five years.
The enhancements to the scheme include an increase in financial aid. Eligible families will now receive $75,000 under the Fresh Start Housing Grant, an increase from the previous amount of $50,000.
The new grant includes an initial payment of $60,000 credited to applicants’ CPF Ordinary Account (OA) before they collect their keys. 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 expanded to include First-Timer (FT) families. Although FT families are ineligible to receive the Fresh Start Housing Grant as they are still eligible for the larger Enhanced CPF Housing Grant (EHG) of up to $120,000, they will 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 Fresh Start starting in April 2025, while the revisions to the amount of the Fresh Start Grant will take effect from the July 2025 BTO exercise.