The recent Committee of Supply debate has seen the Ministry of National Development (MND) announce several enhancements to existing housing schemes, particularly the Silver Housing Bonus (SHB) and Fresh Start Housing Scheme (Fresh Start).
These changes are aimed at further supporting senior citizens and lower-income households in managing their housing needs, such as right-sizing and accessing affordable public housing.
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Under the SHB, senior citizens aged 55 and above with a monthly income of $14,000 or less can receive a cash bonus of up to $30,000 by reallocating the value of their residential assets into their CPF Retirement Account (RA). Previously, applicants were required to top-up their RA with up to $60,000 to receive the bonus, but with effect from 1 December 2019, the bonus will be given if the right-sizing exercise has resulted in a net increase in the RA balance, including from CPF housing refunds. This means that seniors with outstanding loans on their properties can now qualify for the SHB without making a cash top-up.
Additionally, the eligibility criteria for the SHB has been expanded to allow seniors who own properties with an Annual Value (AV) of more than $21,000 (but not exceeding $13,000) to qualify. This will benefit an estimated 15,000 more seniors, who will receive a cash bonus of up to $10,000 based on the increase in their RA, pro-rated at $1 for every $6 increase. On top of this, they will also receive an additional $10,000 cash bonus if they right-size to a two-room or smaller HDB flat.
Seniors can apply for the SHB within one year of their second property transaction, and those who complete their right-sizing after 1 December 2024 can apply for the enhanced SHB on 1 December 2025.
Moving on to the Fresh Start Housing Scheme, which was launched in 2016 to help Second Timer (ST) families attain homeownership, the scheme has also been enhanced to provide more financial support and expand eligibility to First Timer (FT) families.
Under the Fresh Start scheme, eligible families can purchase two-room flexi or three-room standard BTO flats with shorter leases of 45-65 years, subject to an extended minimum occupation period of 20 years. The scheme previously offered a Fresh Start Housing Grant of $50,000, but this has been increased to $75,000. The grant will be disbursed in two parts – $60,000 credited to the CPF Ordinary Account (OA) before key collection, and the remaining $15,000 disbursed over the next five years to support mortgage payments.
The eligibility criteria for the scheme has also been expanded to allow FT families to apply, although they are not eligible for the Fresh Start Housing Grant as they can access the larger Enhanced CPF Housing Grant (up to $120,000). However, they can still benefit from the reduced cost of shorter-lease BTO flats and social support provided under the scheme. Eligible FT families can apply from April 2025, while the revised grant amount will take effect from the July 2025 BTO exercise.
All these changes aim to further assist senior citizens and lower-income households in managing their housing needs, and provide more options and support for them to achieve homeownership and financial stability.