The Ministry of National Development (MND) has announced enhancements to the Silver Housing Bonus (SHB) and the Fresh Start Housing Scheme (Fresh Start) during this year’s Committee of Supply debate. These changes seek to support senior citizens in right-sizing and improve public housing access for lower-income households living in HDB rental flats.The SHB was introduced to encourage senior citizens to better prepare for retirement by unlocking the value of their residential assets and transferring it into their CPF Retirement Account (RA). As of now, applicants must meet certain eligibility criteria in order to qualify for the SHB. They must be aged 55 and above, have a monthly income below $14,000, own a property with an Annual Value (AV) of less than $21,000, and opt for a three-room or smaller HDB flat (excluding three-room terrace) as their replacement property.However, with effect from 1st December 2019, seniors will be awarded the SHB cash bonus if their right-sizing exercise leads to an increase in their CPF RA account balance, regardless of the source of the increase. This means that those who have outstanding loans on their residences paid through their CPF accounts will no longer be required to make a cash top-up to receive the SHB. The eligibility criteria has also been expanded to allow senior citizens who own properties with an AV of more than $21,000 but no more than $13,000 to qualify for the SHB. About 15,000 additional seniors are expected to benefit from this expansion. Similar to the existing framework, these seniors will receive a cash bonus of up to $60,000, but it will be pro-rated at a rate of $1 for every $6 increase in their RA, capped at $10,000. In addition, successful SHB applicants who right-size to a two-room or smaller HDB flat (including Community Care Apartments) will receive a non-pro-rated cash bonus of $10,000 to their RA.Furthermore, the application process for the SHB has been made more flexible. Senior citizens can now apply within a year of their second property transaction. In other words, seniors who complete their right-sizing after 1st December 2024 are eligible to apply for the SHB under the enhanced scheme from 1st December 2025.Another noteworthy update is the expansion of the Fresh Start Housing Scheme, which was first introduced in 2016. Aimed at helping Second Timers (ST) families achieve homeownership, the scheme offers financial support and social assistance. Under the current 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, and the Minimum Occupation Period for these flats is extended to 20 years, compared to the usual five years. The enhancements to the Fresh Start scheme include an increase in the financial assistance provided. Eligible families will now receive $75,000 through the Fresh Start Housing Grant, up from the previous $50,000. This amount consists of an initial disbursement of $60,000 credited to the applicant’s CPF Ordinary Account (OA) before their key collection date, with the remaining $15,000 being disbursed over the next five years to support mortgage payments.Moreover, the eligibility criteria has been expanded to include First-Timer (FT) families as well. However, as FT families are still eligible for the larger Enhanced CPF Housing Grant (EHG) of up to $120,000, they will not receive the Fresh Start Housing Grant. Nevertheless, they will benefit from the reduced cost of shorter-lease BTO units and the social support provided under the Fresh Start program.Applications for the Fresh Start Housing Scheme will be open to both ST and FT families from April 2025 onwards. The revisions to the Fresh Start Grant amount will take effect from the July 2025 BTO exercise.
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