Paper 2 · HDB Transactions: Sale & Rental · 17 min read
Monetising an HDB Flat for Retirement: LBS, Silver Housing Bonus & Right-Sizing
Practise these sections, in sets of about 30:
Must-know for the exam
- At 55, SA then OA savings form the Retirement Account up to the FRS (2 × BRS); a completed property lasting to 95 allows withdrawal down to the BRS.
- Under the Lease Buyback Scheme the owner sells the lease tail-end to HDB and retains a minimum lease set by the youngest owner's age: 30/25/20/15 years at 65–69/70–74/75–79/80+ (HDB).
- LBS needs all owners 65+, one SC owner, income up to $16,000 (from 24 Aug 2026), a 5-year MOP (10 for Plus/Prime) and no private home; HUDC and EC units are excluded.
- After retaining the minimum lease for the youngest owner's age, 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 (from 24 Aug 2026), a decade younger than LBS.
- The SHB owner must commit a net increase of up to $60,000 in the CPF Retirement Account, fundable from cash proceeds or CPF housing refunds, and join CPF LIFE.
- From 1 Dec 2025 the SHB pays $1 per $2 committed (up to $30,000), plus a flat $10,000 for a 2-room or smaller flat; maximum $40,000.
- Short-lease 2-room Flexi flats and CCAs (SCs aged 55+, lease to 95) can never be sold or let on the open market; owners who leave return them to HDB.
On this page · 7 sections
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. Not allowed for a flat on the LBS, or a Plus or Prime flat |
| Rent out spare bedroom(s) | Stay in the flat | Rental income while continuing to live there; only from a 3-room or bigger flat |
1. Lease Buyback Scheme (LBS)
The owner sells the tail-end of the flat's lease back to HDB and keeps living in the flat on the retained lease. The minimum retained lease is set by the youngest owner's age: 30 years at 65 to 69, 25 at 70 to 74, 20 at 75 to 79 and 15 at 80 or above, so it lasts that owner to at least age 95 (HDB, Understanding the LBS page, read 8 Oct 2026). Part of the proceeds is used to top up the CPF Retirement Account and the owner joins CPF LIFE, producing income for life; the LBS bonus is paid in cash, and up to $100,000 per household of the proceeds left over after the CPF top-up may also be kept as cash; anything beyond that first tops up each owner's Retirement Account to the current Full Retirement Sum before any balance is paid in cash (HDB, Understanding the LBS page, read 8 Oct 2026). (The size of the top-up depends on the prevailing Retirement Sum and the starting balance in the Retirement Account.)
- At least 1 Singapore Citizen owner.
- All flat owners must be aged 65 or above — not just one of them. This is the single condition that most often knocks a couple out.
- Gross monthly household income not exceeding $16,000 (raised from $14,000 on 24 Aug 2026; hdb.gov.sg).
- All owners must have lived in the flat for at least 5 years, or 10 years for a Plus or Prime flat.
- All flat types qualify except short-lease flats, HUDC flats and EC units.
- The owners must not own private residential property, or more than one non-residential property. A mixed-use property, such as an HDB shop with living quarters, counts as private residential.
- After retaining the minimum lease HDB sets for the youngest owner's age (30 years at 65 to 69, down to 15 at 80 or above), there must still be at least 20 years of lease left to sell to HDB. A flat with too little lease remaining simply has nothing to sell.
What the owner gives up. The LBS is for ageing in place, so the retained lease is not transferable on the open market: while on the LBS the owner may not sell the flat on the open market or rent out the whole flat. Bedroom rental remains an option. An owner who wants out early returns the flat to HDB for a refund of the remaining lease, pro-rated on a straight-line basis; CPF LIFE payouts continue. If the owner dies, a spouse or child living in the flat may stay for the rest of the lease, subject to eligibility, or return it to HDB (HDB, Lease Buyback Scheme page, updated 25 Aug 2026).
The trap
“Take the LBS for the income, then rent out the whole flat and move in with the children.” Not allowed: an LBS flat may not be sold on the open market or rented out whole. A senior who wants rental income from the whole flat stays off the LBS; one on the LBS can only rent out bedrooms.
| Flat type | LBS bonus (cash) |
|---|---|
| 3-room or smaller | Up to $30,000 |
| 4-room | Up to $15,000 |
| 5-room or bigger | Up to $7,500 |
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Quick self-check · 5 questions
Can you answer these without scrolling up?
Say your answer out loud, then tap to check it.
What are the age and income conditions for the LBS, and how does the SHB age rule differ?Show answer
LBS: all owners 65 or above, at least one SC, income up to $16,000 (from 24 Aug 2026). SHB needs only one SC owner aged 55 or above, with the same $16,000 ceiling.
How much is the LBS bonus for each flat type?Show answer
Up to $30,000 for a 3-room or smaller flat, $15,000 for a 4-room and $7,500 for a 5-room or bigger. The bonus falls as the flat gets bigger; candidates often guess it the other way round.
The youngest LBS owner is 67 and the flat has 62 years of lease left. How much lease can be sold?Show answer
HDB's minimum retained lease at 65 to 69 is 30 years, so 62 − 30 = 32 years to sell. That meets the rule that at least 20 years must be left to sell.
A couple sell their HDB flat, commit $40,000 to their Retirement Accounts and buy a 2-room Flexi. What SHB do they get?Show answer
$30,000. For an HDB flat the bonus is $1 for every $2 committed: $40,000 ÷ 2 = $20,000. Add the non-pro-rated $10,000 for moving to a 2-room or smaller flat.
What is the shortest lease a 58-year-old can take on a short-lease 2-room Flexi flat?Show answer
40 years. The lease must cover her to age 95, which is 37 years, and short leases come only in 5-year steps from 15 to 45 years, so 35 years is too short.
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 at least the minimum HDB sets for the youngest owner's age: 30 years at 65 to 69, 25 at 70 to 74, 20 at 75 to 79 and 15 at 80 or above. 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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