Some low-income households to get extra S$15,000 in housing grants, option to buy 3-room flats

SINGAPORE: Some low-income households will soon get higher grants to buy their own home, under enhancements to the Fresh Start Housing Scheme that were announced on Tuesday (Mar 8).

As part of the changes, they will also be allowed to buy three-room flats with shorter leases, beyond the current option of two-room Flexi flats with shorter leases.

The scheme applies to second-timer families – meaning those who have previously received one housing subsidy – with young children, who currently live in public rental flats.

The move aims to provide more support to these households who aspire to own a home again for their children to grow and develop in, said National Development Minister Desmond Lee in Parliament.

With the enhancements, these households will receive a total housing grant of S$50,000, up from the existing S$35,000.

This increase comes from a higher upfront disbursement of S$35,000 into their CPF Ordinary Account when they collect the keys to their flat, compared to the current S$20,000.

The remaining S$15,000 will be disbursed into their CPF Ordinary Account in equal tranches over five years after key collection.

HOUSEHOLDS ALLOWED TO BUY LARGER FLATS

The scheme was first launched in 2016 to help certain families in rental flats buy a flat of their own again, “so that they can start afresh in a new home”, said the Housing and Development Board (HDB) and Ministry of National Development (MND) in a release.

Under the current scheme, families can buy two-room Flexi flats with lease lengths of 45 to 65 years, in five-year increments.

But to meet a wider range of housing needs, these families will have the option to buy three-room flats with similar lease arrangements, as long as the flat’s lease can cover the youngest applicant or spouse-occupier up to the age of 95.

“These shorter-lease three-room flats will be more affordable than those on 99-year leases, while ensuring families still have a home for life,” said the release.

Mr Lee pointed out that this is the first time authorities will offer new three-room flats on shorter leases, which is a "substantial" change to housing policies, in order to support lower-income families.

Families will also attend annual social assessments by HDB and receive social support from an appointed social service agency, to ensure they can continue on their home ownership journey.

Flats sold under the Fresh Start scheme will continue to have a 20-year Minimum Occupation Period (MOP), to “ensure a stable home for the families and children”, it added.

“Together, these measures will provide significant help for these families to own a home again.”

More details on the implementation of the enhancements will be announced when ready, said the authorities.

The scheme was last enhanced in 2019, when a support programme was set up to help families stay on track in the journey towards home ownership. Special consideration was also allowed for certain families who applied but did not meet some of the criteria.