Passing Thoughts

Yes! More Help for the Elderly Right-sizing their Flat

Our elderly households can live more comfortably in their golden years with new policies aimed at helping them. They can monetise their HDB flat to meet some of their retirement needs by selling part of their flat’s lease to HDB and receive a monthly income. Or, they can decide to right-size to a smaller one and enjoy a cash bonus.

Deferred Down Payment and Temporary Loan

Those choosing to right-size to a 2- or 3-room BTO flat can look forward to a smoother process with –the introduction of the deferred down payment and temporary bridging loan:

Elderly Priority Queue

An elderly priority queue has also been introduced at the HDB Hub in December 2016. Seniors can visit the HDB Hub or Branches to receive one-on-one financial counselling, or enquire about upcoming sales exercises and the process of right-sizing their flats.

Monetisation Options – a Quick Recap

• Lease Buyback Scheme (LBS)

If you have not heard of the LBS scheme, it is a monetisation option for elderly households living in 4-room or smaller flats. They can choose to sell part of their flat’s lease to HDB and retain the balance lease based on the age of the youngest owner. The proceeds will be used to top up their CPF Retirement Account (RA), which can then be used to purchase a CPF LIFE plan. This way, they can receive a steady stream of income for retirement, while continuing to live in their flat.

• Right-sizing

Elderly households who own an existing flat that is larger than what they need, can also consider right-sizing to a smaller and cheaper flat from the resale market or from HDB (2-room Flexi or 3-room flat). In the process, they also have the option of using some of their net sales proceeds to top-up their CPF Retirement Account and purchase a CPF LIFE plan, to enjoy a Silver Housing Bonus (SHB) of up to $20,000 in cash.

Know of someone in their golden years? Share this piece of good news with them!

By Janelyn S
March 14, 2017


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