Retirement Guide
Lease Buyback Scheme vs Silver Housing Bonus: Two Ways Seniors Can Monetise an HDB Flat
Many Singapore seniors are asset-rich and cash-poor, with most of their wealth in an HDB flat. HDB offers two schemes aimed at turning that into retirement income: the Lease Buyback Scheme, where you sell the tail end of your lease and stay put, and the Silver Housing Bonus, where you right-size to a smaller flat and receive a bonus. They suit different people, and both involve CPF top-ups.
At a glance
| Lease Buyback Scheme (LBS) | Silver Housing Bonus (SHB) | |
|---|---|---|
| What you do | Sell the tail-end lease to HDB and keep living in your flat | Sell your flat or private home and buy a 3-room or smaller HDB flat (including a Community Care Apartment) |
| Age | All owners at least 65 (the current eligibility age) | The Singapore Citizen is at least 55 |
| Income | Gross monthly household income of $16,000 or less | $16,000 or less |
| Citizenship | At least one owner is a Singapore Citizen | At least one owner is a Singapore Citizen |
| Property | No private residential property owned at the same time, and no more than one non-residential property | Existing HDB flat (MOP met) or private home with Annual Value up to $31,000; no concurrent private residential property |
| Maximum bonus | $30,000 (3-room or smaller), $15,000 (4-room), $7,500 (5-room or bigger) | $40,000 |
| CPF top-up | Proceeds top up your Retirement Account, then buy CPF LIFE | Commit a net increase of up to $60,000 in your Retirement Account |
Lease Buyback Scheme in more detail
- How it works. You sell part of your flat's lease to HDB, choosing how many years of lease to keep, based on the youngest owner's age. The proceeds go into your CPF Retirement Account, and you can use it to join CPF LIFE for monthly income for life.
- Lease you keep. From 30 to 35 years if the youngest owner is 65 to 69; 25 minimum at 70 to 74; 20 minimum at 75 to 79; and 15 minimum at 80 and above, with longer options available.
- CPF top-up requirement (applications from 1 January 2026). A single owner aged 65 to 69 tops up to $220,400 (the age-adjusted Full Retirement Sum), $210,400 at 70 to 79 and $200,400 at 80 and above. With two or more owners each tops up to their own age-adjusted Basic Retirement Sum, for example $110,200 each at 65 to 69.
- The bonus. A full bonus if total RA top-up is $60,000 or more; otherwise pro-rated at $1 per $2 topped up (3-room or smaller), $1 per $4 (4-room) or $1 per $8 (5-room or bigger). No bonus if all owners already hold the Full Retirement Sum.
- Cash you can keep. After the top-up, up to $100,000 per household in cash. Anything beyond that must first top up RAs to the Full Retirement Sum.
- CPF LIFE. Your RA joins CPF LIFE if you have at least $60,000 in it after the top-up. You cannot join CPF LIFE at 80 or above.
- Other conditions. MOP of 5 years (10 for Plus and Prime flats), at least 20 years of lease left to sell, and all flat types except short-lease flats, HUDC and ECs.
The trade-offs HDB spells out
- The lease is non-transferable on the open market: you may not sell the flat or rent out the whole flat during the lease period.
- If you end the lease early, you return the flat and receive a refund for the remaining lease, pro-rated on a straight-line basis. CPF LIFE continues.
- If you outlive the lease, HDB says you will not be left homeless and will work out suitable housing with you and your family.
- If you die within the lease, a spouse or child living in the flat may stay for the balance, or return it; your beneficiaries get the straight-line remaining value if it is terminated early, and any unused CPF LIFE premium goes to your nominees.
Silver Housing Bonus in more detail
- Enhanced from 1 December 2025. The bonus is up to $30,000 for committing a net increase of $60,000 in your RA, pro-rated at $1 per $2 if you commit less, plus an extra $10,000 if you right-size to a 2-room or smaller flat or CCA, for a maximum of $40,000.
- Private homeowners: if your private property has an Annual Value between $21,000 and $31,000, the bonus is up to $10,000 (pro-rated at $1 per $6), or up to $20,000 with the extra for a 2-room flat or CCA.
- You can use your CPF housing refunds towards the RA commitment, so you may not need a cash top-up. In HDB's example, a couple selling a 5-room flat for $705,000 and buying a 3-room flat for $275,000, with a $100,000 loan and a $45,000 resale levy, has $285,000 net proceeds and can commit $60,000 from CPF refunds to receive the $30,000 bonus with no cash top-up.
- You need positive net sale proceeds after the loan, the next flat's price, any resale levy and any subsidy recovery.
- Timing. Book the new flat (or submit the resale application) before selling your current home, or within 12 months of completing the sale. Apply for the SHB within 1 year of completing the second transaction.
Right-sizing means going through HDB's normal buying process; see the HFE letter, buying a resale flat and selling a flat. For senior-specific flats, see HDB flats for singles and seniors.
Which suits whom
- Prefer to stay put in a larger flat for life and want a monthly income: LBS. Cost: you cannot sell or rent out the whole flat.
- Willing to move to a smaller flat and want a bonus and cash: SHB. Cost: a move, transaction costs and a smaller home.
- Younger than 65: only SHB (from 55) is open.
- Both involve topping up CPF Retirement Account savings; see using CPF for housing and what changes at 55 and CPF accrued interest for refund rules on sale.
FAQ
At what age can I join the Lease Buyback Scheme?
All owners must have reached the eligibility age, currently 65.
Can I rent out my flat under the Lease Buyback Scheme?
No. HDB says the lease is non-transferable on the open market, and you may not sell the flat or rent out the whole flat during the lease period.
What is the maximum Silver Housing Bonus?
$40,000 per household: up to $30,000 for the CPF RA commitment plus $10,000 for right-sizing to a 2-room or smaller flat or CCA.
Can I get the Silver Housing Bonus without a cash top-up?
Yes, if your CPF housing refunds are enough to meet the RA commitment, as in HDB's example.
What happens if I outlive the lease under LBS?
HDB says you will not be left homeless; it will review your circumstances and work out an appropriate arrangement with you and your family.
Related guides
- Negative Equity Singapore: What Happens If You Owe More
- Struggling With Your HDB Loan: Financial Assistance
- How TDSR Is Calculated: 4% Floor and Income Haircuts
Figures current as of October 2026, from HDB's pages. CPF retirement sums and scheme parameters are revised, often yearly, and your amounts depend on your age and flat. This guide is general information only and is not financial or retirement advice. Speak to HDB and the CPF Board, and consider independent advice, before selling any part of your home's lease.
Working through a right-sizing plan? Use PropLeh's Sale Proceeds Calculator to estimate your net proceeds, or message us on WhatsApp.