SINGAPORE — The Housing & Development Board (HDB) is set to enhance the Fresh Start Housing Scheme to provide greater support for families with children residing in public rental flats, enabling them to transition into homeownership. Key changes include an increase in the Fresh Start Housing Grant from S$50,000 to S$75,000 for eligible second-timer families and an expansion of the scheme to include first-timer families in public rental housing.
Increase in Fresh Start Housing Grant to S$75,000
To better support second-timer families with children, the Fresh Start Housing Grant will be increased from S$50,000 to S$75,000. This adjustment aims to provide more substantial financial assistance for families who had previously purchased a subsidized flat but now seek to regain homeownership.
With this increase, eligible second-timer families will receive:
- An upfront disbursement of S$60,000 into their CPF Ordinary Account (OA) before collecting their flat keys.
- The remaining S$15,000 disbursed in equal tranches over five years after key collection.
This revised grant will take effect from the July 2025 BTO exercise.
Expansion of Fresh Start Scheme to First-Timer Families
For the first time, the Fresh Start Housing Scheme will be extended to first-timer families with children currently living in public rental flats. Under this expansion, eligible families will have the opportunity to purchase either a two-room Flexi flat or a three-room Standard flat with a shorter lease, making homeownership more affordable compared to traditional 99-year leasehold flats.
First-timer families who have never received any housing subsidies will continue to qualify for the Enhanced CPF Housing Grant (EHG) of up to S$120,000. As such, they will not be eligible for the Fresh Start Housing Grant, which is specifically designated for second-timer families.
Applications for the Fresh Start Scheme will open in April 2025, with the first flats under this scheme available for booking in the 2026 BTO exercise.
Additional Support Measures for Families
Beyond financial aid, the Fresh Start Housing Scheme includes personalized support to help families transition successfully into homeownership. Eligible families will receive financial counseling, homeownership guidance, and social support services to ensure long-term stability. HDB will work closely with participating families to help them build financial resilience, navigate homeownership responsibilities, and sustain their housing arrangements over the long run.
Projected Impact and Eligibility
The Ministry of National Development (MND) estimates that approximately 13,000 families with children living in public rental flats will be broadly eligible for Fresh Start following these enhancements. However, the ministry anticipates that only a few hundred families will ultimately take up the scheme annually.
The enhancements to the Fresh Start Housing Scheme will require an additional S$3 million per year in government funding. This initiative underscores the government’s commitment to supporting families in public rental housing on their journey toward homeownership.
