Cos 2025 Mnd Enhances Silver Housing Bonus And Fresh Start Scheme
The Ministry of National Development (MND) has recently announced improvements 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 continue the government’s support for senior citizens who are looking to right-size and to enhance the accessibility of public housing for lower-income families residing in HDB rental flats.
Restructured: Tampines North is set to see exciting new developments, both in terms of commercial and residential projects. With this, residents of Aurelle of Tampines EC can look forward to a plethora of amenities and facilities situated within close proximity to their homes. This not only adds a sense of convenience for residents, but also has the potential to increase the value of their properties in the future. Therefore, investing in Aurelle of Tampines EC proves to be a smart decision for buyers looking for a promising location. To learn more about Aurelle of Tampines EC, please visit https://www.aurelle-of-tampines.com.sg/.
The SHB is a scheme that encourages senior citizens to better prepare for their retirement by utilizing the locked-in value of their residential assets to top up their CPF Retirement Account (RA). Currently, eligible applicants must be aged 55 and above, have a monthly income not exceeding $14,000, own a property that does not go beyond an Annual Value (AV) of $21,000, and opt for a HDB flat sized three-room or smaller (excluding three-room terrace) as their replacement property.
Under the existing SHB framework, applicants have the option to top-up their CPF RA with up to $60,000, which will earn them a maximum cash bonus of $30,000. This amount is pro-rated at $1 cash bonus for every $2 top-up made into their RA.
Starting from December 1 this year, applicants can qualify for the SHB cash bonus as long as they can prove that their right-sizing exercise has led to a net increase in their CPF RA account balance from any source, including from CPF housing refunds. This change means that seniors with outstanding loans on their homes using their CPF accounts may no longer need to make a cash top-up to be eligible for the SHB.
The SHB has also been expanded to allow seniors who own higher-valued properties to qualify. Under the new criteria, applicants who own properties with an AV of more than $21,000, but less than or equal to $13,000, can now also qualify. This expansion is estimated to benefit 15,000 additional seniors. Such applicants will still receive a cash bonus based on the increase in their RA, but this amount will be pro-rated at $1 cash bonus for every $6 increase, up to a maximum of $10,000.
In addition, SHB applicants who successfully right-size to a two-room or smaller HDB flat (including Community Care Apartments) will also receive a one-time cash bonus of $10,000. This amount is not pro-rated and will apply regardless of the amount committed to their RA.
Seniors can apply for the SHB within a year after their second property transaction. Therefore, those who have completed their right-sizing 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, aims to provide financial assistance and social support to Second Timer (ST) families who have previously owned a subsidised HDB flat. Under the existing scheme, eligible applicants can purchase two-room flexi or three-room standard BTO flats with a shorter lease of 45 to 65 years, which must last until the youngest owner turns 95. These flats also have an extended Minimum Occupation Period of 20 years, instead of the usual five years.
The enhancements to the scheme include a higher financial support of $75,000 for eligible families, up from the previous $50,000 grant. The new grant will provide a first tranche of $60,000 to be credited into the applicants’ CPF Ordinary Account (OA) before their key collection dates, with the remaining $15,000 disbursed over the next five years to support their mortgage payments.
The eligibility criteria for the Fresh Start scheme have also been expanded to allow First Timer (FT) families to apply. While FT families are not eligible for the Fresh Start Housing Grant, as they are entitled to a larger Enhanced CPF Housing Grant (EHG) of up to $120,000, they 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 for the Fresh Start scheme starting in April 2025, while the revised Fresh Start Housing Grant amount will take effect from the July 2025 BTO exercise.
