FRESH START HOUSING SCHEME

The Fresh Start Housing Scheme (Fresh Start) aims to help second-timer (ST)1 families with young children, who are currently
living in public rental flats. It assists them in owning a 2-room Flexi flat by integrating financial assistance with personal
responsibility and social support.
1
Second-timer (ST) refer to households who have previously enjoyed one housing subsidy.

Key Features

Households under the Fresh Start will be assisted through the following measures:

Short-lease Flat • You can buy a short-lease 2-room Flexi flat in BTO or SBF sales exercises, which are more affordable
than flats with the standard 99-year lease
• The lease options range from 45 years to 65 years, but it must cover all owners and spouse-occupiers
minimally till they are 95 years old
• There will be a 20-year Minimum Occupation Period

HDB Concessionary • You can take up an HDB Concessionary Loan subject to credit assessment
Loan

Cap on Resale Levy • The levy is capped at $30,000

• Will be adjusted downwards based on the length of the lease chosen

Grant • Fresh Start Housing Grant of $35,000

• A $20,000 lump sum will be disbursed into eligible applicants’ CPF Ordinary Accounts just before key
collection
 • The remaining grant of up to $15,000 may be disbursed into eligible applicants’ CPF Ordinary Accounts
equally over 5 years, after key collection

Priority Allocation • Priority allocation given in HDB sales exercises of up to 10% of 2-room Flexi units under the Tenants’
Priority Scheme

Eligibility Conditions

To qualify for the Fresh Start, the family must fulfil these requirements:

a. Form a Second-Timer family nucleus. The applicant and his/ her spouse (if applicable) must be aged at least 35 and below
55 years old. Applicant(s) can be married, divorced, or widowed
b. Have at least 1 Singapore Citizen parent, with at least 1 Singapore Citizen child aged 18 or younger
c. Have at least 1 applicant (either the applicant or his/ her spouse (if applicable)) in stable employment in the preceding 12
months
d. Have occupied a public rental flat for at least 1 year, without accumulating 3 or more months of rental arrears in the
preceding 12 months
e. Have not received any public rental tenancy discount under Relocation, Sale of Flat to Sitting Tenants, or Rent & Purchase
Schemes
f. Qualify for the Letter of Social Assessment (LSA) from the Ministry of Social and Family Development (MSF). To qualify for
the LSA, the family will be assessed based on (i) family stability, (ii) employment stability, (iii) ability to manage their finances
well, and (iv) regularity of school attendance for all children below 16 years old. The LSA will be valid for 1 year
g. Undergo annual review by MSF to renew their LSA until 5 years after key collection. The family may need to attend face-to-
face interviews with MSF officers and this may include following up with Action Plans where necessary, on the four areas as
stated in (f)

At the point of application for a 2-room Flexi flat, your household must also meet the following conditions:
 a. The average gross monthly household income cannot exceed $7,000
b. Do not own other properties overseas or locally, and have not disposed of any within the last 30 months

Other Things to Note

1. If you and all applicants do not submit a flat application within the 1-year validity period of the first LSA, your Fresh Start and
HDB loan applications will be cancelled.
2. To collect the keys to flats booked under the Fresh Start, you and all applicants must renew your LSA annually and have a
valid LSA when the flats are ready. If the LSA is not renewed before its expiry, your flat and HDB loan applications will be
cancelled, and 5% of the purchase price of the booked flat will be forfeited.
3. The lump sum Fresh Start Grant disbursement of $20,000 and HDB mortgage loan can only be used to pay for a maximum
of 90% of the purchase price of the flat. If you and all applicants book an uncompleted flat, you will have to make the 10%
downpayment using your CPF and/ or cash savings. If you and all applicants book a completed flat, you will have to make
the balance 10% payment using your own CPF and/ or cash savings.
4. Each disbursement of the Fresh Start Grant is subject to you and all applicants' successful annual renewal of your LSA with
MSF.
5. If you and all applicants purchase a flat under the Fresh Start, you would have enjoyed two housing subsidies and will no
longer be eligible to buy another subsidised flat from HDB.

Illustration of Flat Purchase under Fresh Start

Mr and Mrs Tan (aged 40), are living with their child (aged 12) in a 2-room public rental flat. Mr Tan is the sole breadwinner, earning
$1,400. They are currently paying monthly rental of $240 in cash.

The following table illustrates how they stand to benefit from the Fresh Start Housing Scheme:
 For Illustration Only(a)
Current Under Fresh Start

Flat Lease Flat with 99-year lease 2R Flexi flat with 60-year lease

Selling Price $115,000(b) $95,800

What They Pay $155,000 $120,800

(Selling Price plus Resale Levy(c))

Upfront Grant Not eligible $20,000

Housing Budget Needed $155,000 $100,800

(Cash/CPF savings & housing loan)

Assumed Cash/CPF Savings (e.g. from sale of $35,000 $35,000

previous flat)

Housing Loan Needed $120,000 $65,800

Monthly Mortgage Instalment (MI) Needed (over loan $550 $300

tenure of 25 years)
(21% MSR)

Family will not qualify for this loan

quantum.
The family will be able to qualify for
this loan quantum
 For Illustration Only(a)
• By CPF Contribution $290

At 39% Mortgage Servicing Ratio

• By Cash $10
(MSR), this exceeds the maximum
30% MSR allowed
Help via Deferred Grant $15,000

Loan tenure will be reduced by 6

years and 9 month

Notes

(a) Flat prices and amounts payable are adjusted from 99-year lease. Prices exclude cost of Optional Component Scheme. The
payment amounts are rounded to nearest $100 for illustration purposes only. Monthly mortgage instalments are rounded to the
nearest $10.

(b) Based on the average price of 2R flats in non-mature estates in 2016, inclusive of Type 1 (36 sqm) and Type 2 (45 sqm) flats.
The actual selling prices of 2-room Flexi flats may differ, depending on location, design features, individual flat attributes, and
prevailing market conditions at the time of offer.

(c) An assumed amount for illustration purpose only. The actual amount payable varies according to the prevailing resale levy
policy at the sale of the first subsidised flat.

How to apply

If you are interested in Fresh Start, you can submit your application online.