The Ministry of National Development (MND) has recently announced significant enhancements to two key housing schemes – the Silver Housing Bonus (SHB) and the Fresh Start Housing Scheme (Fresh Start). These enhancements aim to provide better support for senior citizens in their retirement planning and to improve public housing accessibility for lower-income households living in HDB rental flats.
The SHB is a scheme that encourages senior citizens to right-size their homes by unlocking the value of their residential assets and channeling it into their CPF Retirement Account (RA). Currently, applicants must meet certain eligibility criteria to qualify for the SHB, such as being aged 55 and above, having a monthly income not exceeding $14,000, owning a property with an Annual Value (AV) of not more than $21,000, and purchasing a replacement flat that is a three-room HDB flat or smaller (excluding three-room terrace).
Under the existing SHB framework, applicants can receive a cash bonus of up to $30,000 by topping up their CPF RA with up to $60,000. This bonus is pro-rated at $1 for every $2 top-up into the RA.
Beginning December 1, applicants will be eligible for the SHB cash bonus if they can show that their right-sizing exercise has resulted in a net increase in their CPF RA 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 need to make a cash top-up to qualify for the SHB.
Additionally, the SHB is now expanded to include seniors who own higher-valued properties with an AV of more than $21,000 but less than or equal to $13,000. This change is estimated to benefit 15,000 more seniors. Under this expansion, applicants will receive a pro-rated cash bonus of $1 for every $6 increase in their RA, up to a maximum of $60,000. Successful applicants who right-size to a two-room or smaller HDB flat will also receive a non-pro-rated cash bonus of $10,000.
Seniors can apply for the SHB within a year of their second property transaction. This means that seniors who have completed their right-sizing after December 1, 2024, can apply for the SHB under the enhanced scheme starting from December 1, 2025.
The Fresh Start Housing Scheme was launched in 2016 to provide financial assistance and social support to Second Timers (ST) families who have purchased a subsidised HDB flat before, with the aim of helping them achieve homeownership. Under this scheme, eligible applicants can purchase two-room flexi or three-room standard BTO flats with shorter leases ranging from 45 to 65 years, with the lease lasting until the youngest owner turns 95. These flats are subject to an extended Minimum Occupation Period of 20 years, compared to the usual five years.
The recent enhancements to the Fresh Start scheme include an increased financial support of $75,000, up from the previous $50,000. This sum will be credited to applicants’ CPF Ordinary Account (OA) in two parts – $60,000 before the key collection date and $15,000 over the next five years to support mortgage payments.
Furthermore, the eligibility criteria for the scheme have been broadened to allow First-Timer (FT) families to apply. While FT families cannot benefit from the Fresh Start Housing Grant, which is capped at $50,000, they can still benefit from the lower cost of shorter-lease BTO units and the social support provided under the scheme.
.
To summarize, acquiring a condominium in Singapore offers a multitude of benefits, including strong demand, potential for increasing value, and lucrative rental returns. Nevertheless, it is crucial to carefully evaluate various aspects such as location, financing options, government regulations, and market conditions. By conducting thorough research and seeking guidance from experts, investors can make well-informed decisions and maximize their investment returns in Singapore’s constantly evolving real estate market. Whether you are a local investor looking to expand your portfolio or a foreign buyer searching for a stable and profitable investment, Singapore’s condominiums present a compelling opportunity. Additionally, staying updated on new condo launches can provide valuable insights for potential investment opportunities.
Eligible FT families can apply for the Fresh Start scheme from April 2025, while the revised Fresh Start grant amount will take effect from the July 2025 BTO exercise.