Paper 2 · HDB Policies
Monetising an HDB Flat for Retirement: LBS, Silver Housing Bonus & Right-Sizing
Must-know for the exam
- HDB's monetisation options split by stay or move: the LBS and renting out spare bedrooms let the owner stay, while right-sizing for the SHB and whole-flat rental require a move.
- Under the Lease Buyback Scheme the owner sells the lease tail-end to HDB and keeps a retained lease lasting the youngest owner to age 95.
- LBS requires all owners aged 65 or above, one Singapore Citizen owner, household income up to $16,000 (from 24 Aug 2026), the MOP met and no private residential property.
- After retaining lease to age 95, there must still be at least 20 years of lease left to sell to HDB, or the flat has nothing to sell.
- The LBS bonus is paid in cash and falls as the flat grows: up to $30,000 for 3-room or smaller, $15,000 for 4-room, $7,500 for 5-room or bigger.
- The Silver Housing Bonus is a cash bonus for selling an HDB flat (MOP met) or private property with Annual Value up to $31,000 to buy a 3-room-or-smaller flat.
- SHB needs at least one Singapore Citizen owner aged 55 or above and household income not exceeding $16,000
An older client says the same thing in every branch office in Singapore: "my flat is worth $600,000 and I have almost nothing in the bank." HDB's answer is a set of monetisation schemes that convert some of that housing wealth into retirement income. A salesperson is not a financial adviser and must not recommend one — but must know which schemes exist, who qualifies, and above all the question that sorts them: does the owner want to stay in the flat, or move out of it?
The four options, sorted by stay or move
| Option | Stay or move? | What the owner gets |
|---|---|---|
| Lease Buyback Scheme (LBS) | Stay in the flat | Sell the tail-end of the lease to HDB → CPF Retirement Account top-up + CPF LIFE payouts, an LBS bonus in cash, and any balance proceeds in cash |
| Right-sizing + Silver Housing Bonus (SHB) | Move to a smaller flat | Sell up and buy a 3-room or smaller flat → CPF RA top-up + CPF LIFE, an SHB of up to $40,000 cash, and the balance sale proceeds in cash |
| Rent out the whole flat | Move (e.g. in with children) | Rental income; needs HDB's approval and the MOP to be met |
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Practise exam-style questions on HDB Policies — with instant answers and explanations.
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Common questions
- What is the difference between the Lease Buyback Scheme and the Silver Housing Bonus?
- The Lease Buyback Scheme is for seniors who want to stay in their flat: they sell the tail-end of the lease to HDB, keep enough lease to live there until the youngest owner turns 95, and receive a CPF Retirement Account top-up with CPF LIFE payouts plus an LBS bonus in cash. The Silver Housing Bonus is for seniors who move: they sell their existing property, buy a 3-room or smaller flat, commit part of the proceeds to their CPF Retirement Account and receive a cash bonus of up to $40,000. LBS needs every owner to be 65 or above; the SHB needs only one Singapore Citizen owner aged 55 or above.
- How much is the Lease Buyback Scheme bonus?
- Up to $30,000 in cash for a 3-room or smaller flat, up to $15,000 for a 4-room flat and up to $7,500 for a 5-room or bigger flat. Note that the bonus is larger for smaller flats, because the scheme is targeted at lower-income households. Confirm the current amounts with HDB.
- Can an owner of private property receive the Silver Housing Bonus?
- Yes, if the private residential property has an Annual Value not exceeding $31,000 and the owner sells it and buys a 3-room or smaller HDB flat, subject to the other conditions. The bonus is lower for a property with an Annual Value between $21,000 and $31,000 — up to $10,000 for right-sizing to a 3-room flat and up to $20,000 for a 2-room or smaller flat.
- Does an owner have to move out under the Lease Buyback Scheme?
- No — staying put is the whole point of the scheme. The owner sells only the tail-end of the lease and continues to live in the flat on the retained lease, which must be long enough to last the youngest owner until age 95. There must also be at least 20 years of lease left to sell to HDB after that retention.
- How short a lease can a senior take on a 2-room Flexi flat?
- A Singapore Citizen aged 55 or above may choose a short lease of between 15 and 45 years, in 5-year increments, instead of a 99-year lease. The lease chosen must cover the buyer and their spouse, if any, to at least age 95 — so a 60-year-old needs at least a 35-year lease. Confirm the current options with HDB.
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Join @resprepsg →Study material aligned to the public CEA syllabus. Not financial or legal advice — verify current figures with the relevant authority (IRAS, HDB, CEA, MAS).