Data on Take-up Rates on Reverse Mortgage Tie-Up between CPF and DBS

Ms Joan Pereira asked the Prime Minister with regard to the reverse mortgage tie up between CPF and DBS to help seniors unlock equity from their private homes while they continue to live in them (a) whether the Government has data on the take-up rates since it was offered; and (b) whether the Government will implement measures to promote reverse mortgages and increase awareness among these seniors who are asset-rich but cash-strapped.

The DBS Home Equity Income Loan is a reverse mortgage product that allows homeowners to borrow against their fully paid private residential properties. The loan proceeds will be used to top up their CPF Retirement Sums which will be used for the CPF LIFE1 scheme, allowing them to receive monthly payouts for as long as they live.

Since its launch in August 2021, we understand DBS has approved most of the reverse mortgage applications it has received from eligible private property owners. We are unable to share specific data on the take-up of the product as the information is commercially sensitive.

The Government offers a range of housing monetisation options. All homeowners can consider renting out the property or a room for rental income, or right-sizing. HDB owners who right-size may enjoy a cash bonus through the Silver Housing Bonus scheme. Eligible HDB flat owners can also unlock the value of their properties by selling back part of their lease to HDB under the Lease Buyback Scheme. Homeowners can access information on these housing monetisation options on HDB's website.

The Government will continue to review our policies to ensure Singaporeans have suitable housing monetisation options, especially to meet their retirement needs.