Cos 2025 Mnd Enhances Silver Housing Bonus And Fresh Start Scheme

The Ministry of National Development (MND) has recently announced enhancements to the Silver Housing Bonus (SHB) and the Fresh Start Housing Scheme (Fresh Start). These changes are part of the government’s ongoing efforts to support senior citizens in their retirement planning and to improve public housing accessibility for lower-income households living in HDB rental flats.

The SHB aims to encourage senior citizens to better prepare for their retirement by unlocking the value of their residential assets and transferring it into their CPF Retirement Account (RA). Currently, applicants must be at least 55 years old, have a monthly income not exceeding $14,000, own a property with an Annual Value (AV) of not more than $21,000, and their new replacement property must be a three-room HDB flat (excluding three-room terrace) or smaller.

Under the current SHB scheme, applicants can choose to top-up their CPF RA with up to $60,000 to receive a bonus of up to $30,000 in cash. This amount is prorated at $1 in cash bonus for every $2 top-up made into their RA.

Effective from December 1st of this year, applicants will be eligible for the SHB cash bonus if they can prove that their right-sizing exercise resulted in a net increase to their CPF RA account balance from any source, including CPF housing refunds. This change means that seniors with outstanding loans on their properties using their CPF accounts may no longer need to make a cash top-up to qualify for the SHB.

In addition, the SHB has been expanded to include seniors who own higher-valued properties. Now, applicants who own properties with an AV of more than $21,000 but less than or equal to $13,000 can also qualify for the SHB. This expansion is estimated to benefit 15,000 additional seniors, according to MND. These seniors will receive a cash bonus based on the amount their RA increases, up to $60,000. However, the amount will be prorated to $1 in cash bonus for every $6 their RA increases, with a maximum of $10,000.

On top of the prorated amount, successful SHB applicants will also receive a $10,000 cash bonus when they right-size to a two-room or smaller HDB flat (including Community Care Apartments). This amount is not prorated and will apply regardless of the amount committed to their RA.

Seniors can apply for the SHB within a year of their second property transaction. This means that those who complete their right-sizing after December 1st, 2024 will be eligible to apply for the SHB on December 1st, 2025, under the enhanced scheme.

Expansion of the Fresh Start Housing Scheme

During the Committee of Supply debate this year, Minister of State for National Development Muhammad Faishal Ibrahim announced an enhancement to the Fresh Start Housing Scheme. Launched in 2016, the program aims to provide Second Timers (ST) families with financial assistance and social support to help them achieve homeownership.

Currently, eligible applicants can purchase two-room flexi or three-room standard BTO flats on shorter leases, which typically range from 45 to 65 years. These leases must be valid 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.

The enhancements to the scheme include increased financial support. Eligible families will now receive $75,000 from the Fresh Start Housing Grant, up from the previous amount of $50,000.

The 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 next five years to support their mortgage payments.

The eligibility criteria for the scheme have also been expanded to allow First-Timer (FT) families to apply. Although FT families are not eligible for the Fresh Start Housing Grant as they can still benefit from the larger Enhanced CPF Housing Grant (EHG) of up to $120,000, they will benefit from the reduced cost of shorter-lease BTO units and the social support provided under the program.

Eligible FT families can apply for Fresh Start starting in April 2025, while the revisions to the Fresh Start Grant amount will take effect from the July 2025 BTO exercise.