Updated Rules on CPF Usage and HDB Housing Loan from 10 May 2019

Rules on CPF usage and HDB hous­ing loans will now focus on wheth­er the remain­ing lease of the home can cov­er the young­est buy­er until at least the age of 95. Home buy­ers will be allowed to obtain max­im­um CPF usage and HDB hous­ing loan (for HDB flat buy­ers) if the cri­ter­ia is met, else the amount will be pro-rated. 

Pre­vi­ously, the use of CPF to buy prop­er­ties focused on the remain­ing lease of the prop­erty. Now under the new rules, the total amount of CPF that can be used for prop­erty pur­chase will depend on the extent the remain­ing lease of the prop­erty can cov­er the young­est buy­er to the age of 95. If the remain­ing lease of prop­erty is at least 20 years and can cov­er young­est buy­er until at least the age of 95, buy­er can use CPF to pay for the prop­erty up to the Valu­ation Lim­it (VL), else it will be pro-rated based on the extent the remain­ing lease of the prop­erty can cov­er the young­est buy­er to the age of 95.

On CPF with­draw­al after age 55, CPF mem­bers will now need to have a prop­erty with suf­fi­cient remain­ing lease to cov­er them until at least the age of 95, before they can with­draw their CPF sav­ings above the Basic Retire­ment Sum (BRS).

Pre­vi­ously, buy­ers of HDB flats faced restric­tions on the amount of HDB hous­ing loan they could get to pur­chase flats with remain­ing leases of less than 60 years. How­ever, buy­ers will now be able to take an HDB hous­ing loan of up to the full 90% Loan-to-Value (LTV) lim­it , if the remain­ing lease of the flat can cov­er the young­est buy­er to the age of 95. If the remain­ing lease of the flat can­not cov­er the young­est buy­er to the age of 95, they can still take an HDB loan but the LTV lim­it will be pro-rated from 90%, based on the extent that the remain­ing lease can cov­er the young­est buy­er to the age of 95. 

Source: MOM Press Release

Close Menu