Reverse Mortgage Singapore

Reverse Mortgage Singapore: HDB Lease Buyback and Monetising Your Home

A reverse mortgage lets elderly homeowners convert home equity into income without selling. In Singapore, the primary equivalent is the HDB Lease Buyback Scheme (LBS) — a government programme that enables elderly flat owners to sell a portion of their flat’s remaining lease back to HDB, receiving a cash sum credited into CPF LIFE for lifelong monthly payouts. This is not financial advice — check eligibility and scheme details directly with HDB.

What Is a Reverse Mortgage?

A conventional reverse mortgage (common in the US and Australia) allows a homeowner to borrow against their property’s value. The loan balance grows over time as interest accrues, and the loan is repaid when the owner sells, moves out, or passes away. The homeowner retains ownership and continues living in the property.

Singapore does not have a widely available private reverse mortgage product. Instead, the government provides the HDB Lease Buyback Scheme and the Silver Housing Bonus as structured alternatives for HDB flat owners.

HDB Lease Buyback Scheme (LBS)

The LBS is the most relevant reverse mortgage equivalent for most Singaporeans. Key features:

  • Who qualifies: Singapore citizen aged 65 or above; HDB flat of 4 rooms or smaller; at least one owner must meet the age and citizenship criteria; flat must be fully paid up or with only a small outstanding loan
  • How it works: You sell a portion of your flat’s remaining lease back to HDB. If you have 60 years of lease remaining and sell 30 years, HDB pays you the market value of those 30 years. You keep 30 years — enough to cover your lifetime
  • Proceeds: Cash proceeds go into your CPF Retirement Account to top up CPF LIFE, boosting your monthly payout. A cash bonus (the LBS bonus, up to S$30,000) may also be paid directly
  • Eligibility for 5-room flats: As at Q1 2026, 5-room and Executive flats are not eligible for LBS — only 1- to 4-room flats

Silver Housing Bonus (SHB)

The Silver Housing Bonus applies when elderly flat owners right-size (downgrade to a smaller flat). If you sell a larger flat and buy a smaller one, you can receive up to S$30,000 as an SHB cash bonus when you use the sale proceeds to top up your CPF LIFE. This is not a reverse mortgage per se, but serves a similar income-boosting function.

Private Reverse Mortgage Products in Singapore

Several local banks have explored reverse mortgage products for private property owners, but availability is limited as at Q1 2026. Private property owners with significant equity can consider:

  • Home equity loans: Borrow against property value (requires monthly repayments — not truly a reverse mortgage)
  • Sale-and-leaseback: Sell the property to a buyer and lease it back as a tenant — releases full equity but gives up ownership
  • Downsizing: Sell private property, purchase a smaller unit or HDB (for PRs/citizens), and deploy surplus cash for retirement income

Is Monetising Your HDB a Good Retirement Strategy?

For asset-rich, cash-poor Singaporeans who have significant wealth tied up in their HDB flat but modest CPF savings, the LBS can meaningfully boost retirement income. However, it permanently reduces the flat’s remaining lease — affecting what can be passed to beneficiaries. It is best viewed as one component of a broader retirement income plan alongside CPF LIFE, investment dividends, and SRS savings.

Frequently Asked Questions

Is there a reverse mortgage scheme in Singapore?
Singapore does not have a widely available private reverse mortgage product. The closest government equivalent is the HDB Lease Buyback Scheme (LBS), which allows eligible elderly flat owners (aged 65+, 4-room or smaller flat) to sell part of their remaining lease back to HDB in exchange for a CPF top-up that boosts CPF LIFE monthly payouts.
How does the HDB Lease Buyback Scheme work?
You sell a portion of your HDB flat’s remaining lease to HDB. For example, if 60 years remain, you might sell 30 years and retain 30 years of occupancy rights. HDB pays you the market value of the sold lease portion, which is credited to your CPF Retirement Account to increase your CPF LIFE monthly payout.
Who is eligible for the HDB Lease Buyback Scheme?
Eligibility requires: Singapore citizen aged 65 or above; HDB flat of 4 rooms or smaller (5-room and Executive flats are not eligible as at Q1 2026); at least one owner must be a Singapore citizen aged 65+; and the flat should be substantially paid up.
What is the Silver Housing Bonus in Singapore?
The Silver Housing Bonus (SHB) is a cash incentive (up to S$30,000) for elderly Singaporeans who right-size by selling a larger flat and buying a smaller one, using part of the sale proceeds to top up CPF LIFE. It encourages home monetisation to supplement retirement income.
Can private property owners get a reverse mortgage in Singapore?
Private reverse mortgage products are limited in Singapore as at Q1 2026. Private property owners can consider home equity loans (with repayments), sale-and-leaseback arrangements, or downsizing to release equity. Banks occasionally offer reverse mortgage pilot products — check with DBS, OCBC, or UOB for current availability.