The Ministry of National Development (MND) has recently announced several changes to two key public housing schemes. The Silver Housing Bonus (SHB) and Fresh Start Housing Scheme (Fresh Start) have been enhanced in order to better support seniors and lower-income households. These changes reflect the government’s ongoing efforts to assist senior citizens with right-sizing and improve accessibility to public housing for lower-income families living in HDB rental flats.
The first change pertains to the Silver Housing Bonus (SHB), which encourages senior citizens to plan for their retirement by releasing the value of their residential assets into their CPF Retirement Account (RA). Currently, applicants must be at least 55 years old, have a monthly income not exceeding $14,000, a property with Annual Value (AV) less than $21,000, and a replacement HDB flat with three rooms or fewer (excluding three-room terraces). The SHB entitles eligible applicants to a cash bonus of up to $30,000 if they make a top-up of up to $60,000 into their RA, with a $1 cash bonus for every $2 of top-up.
However, starting December 1, 2020, seniors can qualify for the SHB cash bonus as long as they can demonstrate an increase in their RA account balance, regardless of the source. This means that seniors who have outstanding loans on their properties using their CPF accounts may no longer need to make a cash top-up to qualify for the SHB. Additionally, the SHB will now include seniors who own properties with an AV between $21,000 to $13,000, making an additional 15,000 seniors eligible for the scheme. These applicants will receive a cash bonus based on the amount their RA increases, up to $60,000, with a $1 cash bonus for every $6 of increase. Eligible applicants who right-size to a two-room or smaller HDB flat will also receive an additional 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 those who right-size after December 1, 2024, will be able to apply for the enhanced SHB.
Another announcement from the MND relates to the Fresh Start Housing Scheme, which was introduced in 2016 to offer financial assistance and social support to Second Timers (ST) families who have previously purchased a subsidised HDB flat. Under the scheme, eligible applicants can purchase two-room flexi or three-room standard BTO flats on shorter leases, typically lasting until the youngest owner reaches 95 years.
The enhancement to the Fresh Start scheme includes an increased financial support of $75,000, up from the previous $50,000. Eligible families will receive an initial disbursement of $60,000 into their CPF Ordinary Account (OA) before collecting the keys to their new flat, with the remaining $15,000 disbursed over the next five years to support mortgage payments. First-Timer (FT) families can also apply for the scheme, even though they are ineligible to receive the Fresh Start Housing Grant of $75,000. However, they will still benefit from the reduced cost of shorter-lease BTO units and social support under the program. Eligible FT families can apply from April 2025, with the revised Fresh Start Grant amount taking effect from the July 2025 BTO exercise.
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Overall, these changes to the SHB and Fresh Start Housing Scheme will provide additional support to seniors and lower-income households, making it easier for them to right-size and access public housing.