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10-03-2014, 11:20 PM
An honorable member of the Coffee Shop Has Just Posted the Following:
Reverse mortgages for elderly HDB flat owners being seriously studied: Khaw
Here is an excerpt of the statement by the Ministry of National Development:
Enhancing Monetisation Options for the Elderly
Currently, 220,000 HDB flats are owned by Singaporeans aged 55 and above, and with mortgages fully paid up. Most of these elderly have strong family support and healthy savings. For those who want to convert part of their housing asset into cash, the current options are:
a) Sell their HDB flat and move to live with family members or to a smaller flat or Studio Apartment (SA). An eligible elderly household who chooses to top-up their CPF Retirement Accounts (RA) with proceeds from right-sizing and join CPF LIFE can enjoy a Silver Housing Bonus (SHB) of up to $20,000 in cash. Since 1 Feb 2013, 70 households have enjoyed the SHB.
b) Join the Enhanced Lease Buyback Scheme (LBS) where the household sells part of the flat's lease to HDB and retains a 30-year lease, and use its net proceeds to top up their CPF RAs, join CPF LIFE, and get a cash bonus of up to $20,000. The LBS is currently available to eligible elderly households in 3-room or smaller HDB flats.
The LBS was introduced in 2009 and enhanced in 2013. Over the last three years, LBS has benefited 390 elderly households.
c) Rent out their HDB flat or spare room.
MND last improved monetisation options for the elderly on Feb 1, by introducing the Silver Housing Bonus, and enhancing the Lease Buyback Scheme to allow more households in 3-room or smaller flats to qualify, allow retention of cash proceeds after meeting the required CPF top-up, and increasing the bonus to $20,000 in cash.
Going forward, MND is studying reverse mortgage* as a new monetisation option, with a view to formulate a practical scheme. MND is also reviewing to improve existing options, including whether to extend the Lease Buyback Scheme to larger flat types.
* Under a reverse mortgage, the owner retains the full lease of the flat, but takes a loan against his flat as collateral, and will have to repay the loan with accumulated interest upon termination of the loan, or death.
Click here to view the whole thread at www.sammyboy.com (http://www.sammyboy.com/showthread.php?176903-PAP-wants-to-squeeze-you-dry&goto=newpost).
Reverse mortgages for elderly HDB flat owners being seriously studied: Khaw
Here is an excerpt of the statement by the Ministry of National Development:
Enhancing Monetisation Options for the Elderly
Currently, 220,000 HDB flats are owned by Singaporeans aged 55 and above, and with mortgages fully paid up. Most of these elderly have strong family support and healthy savings. For those who want to convert part of their housing asset into cash, the current options are:
a) Sell their HDB flat and move to live with family members or to a smaller flat or Studio Apartment (SA). An eligible elderly household who chooses to top-up their CPF Retirement Accounts (RA) with proceeds from right-sizing and join CPF LIFE can enjoy a Silver Housing Bonus (SHB) of up to $20,000 in cash. Since 1 Feb 2013, 70 households have enjoyed the SHB.
b) Join the Enhanced Lease Buyback Scheme (LBS) where the household sells part of the flat's lease to HDB and retains a 30-year lease, and use its net proceeds to top up their CPF RAs, join CPF LIFE, and get a cash bonus of up to $20,000. The LBS is currently available to eligible elderly households in 3-room or smaller HDB flats.
The LBS was introduced in 2009 and enhanced in 2013. Over the last three years, LBS has benefited 390 elderly households.
c) Rent out their HDB flat or spare room.
MND last improved monetisation options for the elderly on Feb 1, by introducing the Silver Housing Bonus, and enhancing the Lease Buyback Scheme to allow more households in 3-room or smaller flats to qualify, allow retention of cash proceeds after meeting the required CPF top-up, and increasing the bonus to $20,000 in cash.
Going forward, MND is studying reverse mortgage* as a new monetisation option, with a view to formulate a practical scheme. MND is also reviewing to improve existing options, including whether to extend the Lease Buyback Scheme to larger flat types.
* Under a reverse mortgage, the owner retains the full lease of the flat, but takes a loan against his flat as collateral, and will have to repay the loan with accumulated interest upon termination of the loan, or death.
Click here to view the whole thread at www.sammyboy.com (http://www.sammyboy.com/showthread.php?176903-PAP-wants-to-squeeze-you-dry&goto=newpost).