Ministry of National Development (MND) announced updates to the Silver Housing Bonus (SHB) and the Fresh Start Housing Scheme (Fresh Start) during this year’s Committee of Supply debate. These changes aim to further support senior citizens in their retirement and provide better access to public housing for lower-income households living in HDB rental flats.
The SHB is designed to encourage senior citizens to plan for their retirement by unlocking the value of their residential assets and placing it into their CPF Retirement Account (RA). Currently, seniors must be at least 55 years old, have a monthly income of no more than $14,000, own a property with an Annual Value (AV) of $21,000 or less, and downsize to a three-room (excluding three-room terrace) or smaller HDB flat 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. Each dollar of top-up made into their RA would yield a $1 cash bonus, up to a maximum of $30,000.
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Starting from December 1, 2021, seniors can receive the SHB cash bonus if their right-sizing exercise leads to a net increase in their CPF RA balance from any source, including CPF housing refunds. This change means that seniors who have outstanding loans on their residential properties using their CPF savings may no longer need to make a cash top-up to qualify for the SHB.
Additionally, the SHB will now include seniors who own higher-valued properties. Applicants who own properties with an AV of more than $21,000 but less or equal to $13,000 can now qualify. This change is expected to benefit approximately 15,000 more seniors, according to MND’s estimate. These applicants will still receive a cash bonus based on the amount their RA increases, up to a maximum of $60,000. However, the bonus amount will be pro-rated at $1 for every $6 their RA increases, capped at $10,000.
On top of the pro-rated amount, successful SHB applicants will receive a $10,000 cash bonus if they downsize to a two-room or smaller HDB flat (including Community Care Apartments). This bonus amount will not be pro-rated and will apply regardless of the amount committed to their RA.
Seniors who wish to apply for the SHB can do so within a year of their second property transaction. This means that those who have completed their right-sizing exercise after December 1, 2024, can apply for the SHB on December 1, 2025, under the enhanced scheme.
The Fresh Start Housing Scheme, launched in 2016, offers financial assistance and social support to Second Timers (ST) families who have previously owned a subsidised HDB flat, with the goal 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 ranging from 45 to 65 years. These leases must last until the youngest owner turns 95. Flats purchased under this scheme are subject to an extended Minimum Occupation Period of 20 years, compared to the usual five years.
Revisions to the Fresh Start scheme include an increase in financial support. Eligible families can now receive $75,000 from the Fresh Start Housing Grant, up from the previous $50,000. This 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 following five years to support mortgage payments.
The eligibility criteria for the scheme have also been expanded to allow First-Timer (FT) families to apply. Although FT families are ineligible for the Fresh Start Housing Grant, they are still eligible for the larger Enhanced CPF Housing Grant (EHG) of up to $120,000. However, FT families can still benefit from the reduced cost of shorter-lease BTO units and the social support provided under the programme.
Eligible FT families can apply to the Fresh Start scheme starting in April 2025, while the revised Fresh Start Grant amount will take effect from the July 2025 BTO exercise.