COS 2025: Silver Housing Bonus and Fresh Start Housing Scheme enhancements

During the Prime Minister’s Budget 2025 speech, updates to the Silver Housing Bonus (SHB) and Fresh Start Housing Scheme were mentioned, with further details promised at a later date. 

Now, those details have been released, and if you are a senior homeowner or a second-timer family looking for housing support, these changes may impact you. 

Here’s what you should know about the enhancements to these schemes and how they could benefit you.

Silver Housing Bonus (SHB) enhancements

The Silver Housing Bonus is designed to help seniors unlock the value of their homes for retirement by topping up their CPF Retirement Account (RA).

Current eligibility criteria and its benefits

 Previously, eligibility criteria included being at least 55 years old, having a monthly household income of no more than S$14,000, and owning a property with an Annual Value (AV) of S$21,000 or less. Additionally, the replacement property had to be a 3-room or smaller HDB flat. 

Under the existing scheme, seniors could receive up to S$30,000 in cash bonuses, which were pro-rated at S$1 for every S$2 topped up to their CPF RA, up to a limit of S$60,000.

Looking for more HDB grants for seniors? Read more here: HDB grants and eligibility for seniors

What are the Silver Housing Bonus (SHB) enhancements? 

From 1 December 2025, the SHB will be updated to give seniors more flexibility and support when they choose to right-size.

First, the maximum SHB payout will rise from S$30,000 to S$40,000. To qualify, you’ll simply need to show a net increase of up to S$60,000 in your CPF Retirement Account (RA). This can be funded entirely through CPF housing refunds, as long as the amount is sufficient, which means you no longer have to top up your RA with cash.

Your bonus will also be restructured. You can receive up to S$30,000 in cash, based on how much your RA grows. On top of that, you’ll get an additional S$10,000 if you move to a 2-room flat or smaller.

The Annual Value (AV) ceiling will also be raised to S$31,000, up from S$21,000. This broader criteria is expected to make the SHB accessible to around 15,000 more seniors.

If you’re downsizing, keep in mind that applications must be submitted within one year of your second property transaction. 

Fresh Start Housing Scheme enhancements

The Fresh Start Housing Scheme was originally introduced to provide financial and social support to Second Timer (ST) families who had previously purchased a subsidised HDB flat but struggled to regain homeownership. 

Current Fresh Start Housing Scheme

Under the current scheme, eligible families could purchase either two-room flexi or three-room standard BTO flats on shorter leases ranging from 45 to 65 years, ensuring that the lease would last until the youngest owner reaches at least 95 years old. 

These flats also came with an extended Minimum Occupation Period (MOP) of 20 years instead of the usual 5.

Enhancements to the Fresh Start Housing Scheme

The enhancements to the Fresh Start Housing Scheme will include:

• Increased Financial Support: The Fresh Start Housing Grant will be raised from S$50,000 to S$75,000. Of this amount, S$60,000 will be disbursed upfront to the CPF Ordinary Account (OA) before key collection, while the remaining S$15,000 will be staggered over 5 years to help families manage their mortgage payments more effectively. This increase in financial aid aims to reduce the financial strain on families transitioning back into homeownership.
• Expanded Eligibility: Another major change is the expansion of eligibility criteria to include First-Timer (FT) families. While these families will not be exactly eligible for the Fresh Start Housing Grant, they will still benefit from the affordability of shorter-lease BTO flats and receive social support under the scheme. This update will broaden the scope of assistance, allowing more families to secure stable housing despite financial difficulties.

Read more here: Fresh Start Housing Scheme: Budget 2025 Updates

Application timeline for the Fresh Start Housing Grant

FT families can start applying from April 2025, while the increased Fresh Start Housing Grant will take effect from the July 2025 BTO exercise. These adjustments provide more opportunities for struggling families to find a permanent home with the necessary financial support.

What do you think about these COS 2025 housing enhancements? Let us know in the comments section below.