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29 Apr 2019


​​​Besides being a safe space where you build precious memories with your loved ones, did you know that your home can also supplement your retirement needs in your golden years?

As a homeowner, here are three things you can consider doing to unlock the value of your flat.

 Illustration showing three ways to unlock the value of your home for retirement.

1. Sell part of your lease

If you’re aged 65 or above, the Lease Buyback Scheme (LBS) allows you to monetise your flat to receive a stream of income in your retirement years, while continuing to live in it.​

​You can choose the length of your lease to retain, based on the age of the youngest homeowner.​

For households with 1 owner:
The net proceeds* from selling the tail-end of your lease will be used to top up your Retirement Account (RA) up to the current Full Retirement Sum (FRS), which is then used to join CPF LIFE to give you lifelong monthly payouts. Any balance proceeds after the top-up is yours to enjoy in cash.

For households with 2 or more owners:

The net proceeds will be used to top up each owner’s RA to the current age-adjusted Basic Retirement Sum (BRS). After topping up their RAs, the household may retain the proceeds in cash, up to $100,000. If there are any remaining proceeds (after the top-up and setting aside of $100,000 cash), they will be used to further top up the owners’ respective RAs to the current FRS, before they can retain any balance in cash as well.

When you sell part of your lease, you will also receive a cash bonus! As long as the total top-up to your RA from the net proceeds is at least $60,000, you will receive the bonus of up to $30,000 (depending on the flat type).

Find out how the LBS works and whether you’re eligible.

2. Sell your flat, buy a 3-room or smaller HDB flat and enjoy the Silver Housing Bonus

If yo​u are aged 55 and above, and are considering moving to a 3-room or smaller flat, you can supplement your retirement income with the Silver Housing Bonus (SHB).​ 

You can qualify as long as you unlock proceeds from selling your existing home (either an HDB flat or a private property with an annual value that is $13,000 or less), top up your CPF RA and join CPF LIFE.  You can enjoy a maximum cash bonus of $30,000 per household if you top up $60,000 to your RA!  For top-ups of less than $60,000 to RA, you will enjoy a cash bonus of $1 for every $2 top-up.  

Tip: If you move to a resale flat (with no resale levy) within 4km of your children’s residence, you may also receive a Proximity Housing Grant of up to $20,000.

3. Rent out your flat or spare bedroom(s)

If you prefer spending your golden years in your current home, you can consider renting out your spare bedrooms while earning regular income from it. The only downside of this is the inconvenience of having to live with strangers around. If you don’t mind sharing your personal living space, then this is a viable option for you.

Alternatively, you may prefer renting out your entire flat and move in with your children. Apart from being able to live closer to family, you will also earn higher rental income compared to renting out a single bedroom.

Find out more about renting out your flat or bedroom.

As you weigh your options and consider your next step, you may want to speak with an HDB officer who can advise you. Make an e-Appointment with HDB for a one-to-one financial counselling session or call the toll-free HDB Branch Service line at 1800-225-5432 between 8am and 5pm from Mondays to Fridays for more information.

*Net proceeds for LBS = the proceeds from the sale of the tail-end lease to HDB less all outstanding payments such as mortgage loan, upgrading cost, ex-tenancy/lease arrears, taxes and LBS fees including administrative and legal fees. 

Last updated on 23/10/2020.