Grants and larger flat options introduced to help families secure home ownership
SINGAPORE: Some low-income households will soon benefit from increased grants under the enhanced Fresh Start Housing Scheme, announced on Tuesday (Mar 8). These families will now have the option to purchase three-room flats with shorter leases, a departure from the current two-room Flexi flat offerings. The scheme, aimed at second-time buyers with young children living in public rental flats, will raise the total housing grant from S$35,000 to S$50,000, offering more financial assistance. National Development Minister Desmond Lee emphasized the importance of helping families own homes where their children can thrive.
As part of the new enhancements, S$35,000 will be disbursed into the family’s CPF Ordinary Account upon collecting the keys, up from the previous S$20,000, with the remaining S$15,000 distributed over five years. The changes aim to assist these families in owning a stable home again.
The scheme, first launched in 2016, provides opportunities for families in public rental flats to buy flats of their own, helping them “start afresh.” Previously, the scheme allowed families to purchase two-room Flexi flats with leases between 45 and 65 years. Now, the new option of three-room flats with similar lease arrangements will better cater to a broader range of housing needs, as long as the lease covers the youngest family member or spouse until age 95.
The Housing and Development Board (HDB) noted that these shorter-lease three-room flats would be more affordable than those with 99-year leases, ensuring families have long-term housing security. Minister Desmond Lee highlighted that this is the first time shorter-lease three-room flats are being offered, marking a significant shift in housing policy to better support lower-income families.
Families benefiting from this scheme will also participate in annual social assessments by HDB and receive continued social support from appointed agencies to ensure they stay on track in their homeownership journey. The 20-year Minimum Occupation Period (MOP) for flats under this scheme remains, to ensure stability for the families.
The enhancements aim to provide meaningful assistance for families aspiring to own a home again, with more details to follow. The scheme was last enhanced in 2019 to include more robust support programs for families on their path to homeownership.
