Enhancement to the Silver Housing Bonus and Fresh Start Housing Scheme announced by MNDThe Ministry of National Development (MND) has announced that the Silver Housing Bonus (SHB) and Fresh Start Housing Scheme (Fresh Start) will be enhanced during the annual Committee of Supply debate. These changes are part of the government’s continuous efforts to support senior citizens in downsizing and to improve public housing accessibility for low-income households living in HDB rental flats.The SHB aims to encourage seniors to better prepare for their retirement by unlocking the value of their residential assets and transferring it to their CPF Retirement Account (RA). Currently, eligible applicants must be 55 years old and above, with a monthly income not exceeding $14,000. They must also own a property that does not exceed an Annual Value (AV) of $21,000 and their replacement property must be a three-room or smaller HDB flat (excluding three-room terraces).Read also: A Guide to The Enhanced CPF Housing Grant (EHG)AdvertisementAdvertisementUnder the current SHB scheme, applicants may choose to make a top-up of up to $60,000 into their CPF RA to receive a cash bonus of up to $30,000. This amount is pro-rated, with every $2 top-up receiving a $1 cash bonus.With effect from 1 December 2020, applicants can qualify for the SHB cash bonus as long as they can prove that their downsizing exercise resulted in a net increase in their CPF RA from any source, including CPF housing refunds. This means that seniors with outstanding loans for their properties using their CPF accounts might no longer need to make a cash top-up to be eligible for the SHB.The SHB has also been expanded to include seniors who own higher-value properties. Eligible applicants who own properties with an AV exceeding $21,000 but not more than $13,000 can now qualify for the SHB. This enhancement is expected to benefit an additional 15,000 seniors, according to MND.Such applicants will still receive a cash bonus based on the amount their RA increases, capped at $60,000. However, the amount will be pro-rated to a $1 cash bonus for every $6 their RA increases, capped at $10,000. On top of this pro-rated amount, successful SHB applicants will receive an additional $10,000 cash bonus when they downsize to a two-room or smaller HDB flat (including Community Care Apartments). This amount is not pro-rated and will apply regardless of the amount committed to their RA.Read also: HDB resale prices up by 0.1% q-o-q in 3Q2019, resale transactions down 0.2%AdvertisementAdvertisementSeniors can apply for the SHB within a year of their second property transaction. This means that seniors who complete their downsizing after 1 December 2024 can apply for SHB on 1 December 2025, under the enhanced scheme.Fresh Start Housing Scheme expandedThe Ministry of National Development has also announced enhancements to the Fresh Start Housing Scheme, which was first launched in 2016. This scheme aims to assist Second Timers (ST) families who have previously bought a subsidised HDB flat, by providing financial assistance and social support to help them attain homeownership.Under the current Fresh Start scheme, eligible applicants can purchase two-room Flexi or three-room standard BTO flats with shorter leases, typically between 45 and 65 years, with a minimum lasting 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.Enhancements to the scheme include an increase in financial support. Eligible families will now receive $75,000 from the Fresh Start Housing Grant, up from the previous $50,000. This new grant includes an initial disbursement of $60,000 into applicants’ CPF Ordinary Account (OA) before their key collection date, with the remaining $15,000 disbursed over the next five years to support mortgage payments.The criteria for eligibility have also been expanded to include First-Timer (FT) families. Although FT families are ineligible for the Fresh Start Housing Grant as they are still eligible for the 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 this scheme.Read also: HDB Optional Component Scheme (OCS) – Is It Worth Opting In?AdvertisementAdvertisementEligible FT families can apply for Fresh Start starting from April 2025, while the revised Fresh Start Grant amount will take effect from the July 2025 BTO exercise.