More Flexibility to Buy a Home for Life While Safeguarding Retirement Adequacy
The age-based framework may widen financing access for some older-lease homes while pro-rating support for shorter coverage, potentially influencing affordability and buyer choices.
From 10 May 2019, maximum CPF usage and HDB loans apply when a home's remaining lease covers the youngest buyer until at least age 95.
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More Flexibility to Buy a Home for Life While Safeguarding Retirement Adequacy
Rules on CPF usage and HDB housing loans have been updated to provide more flexibility for Singaporeans to buy a home for life, while safeguarding their retirement adequacy. The rules will now focus on whether the remaining lease of the home can cover the youngest buyer until at least the age of 95. If so, home buyers will be allowed to obtain maximum CPF usage and HDB housing loan (for HDB flat buyers). Those who do not meet this criteria will still be able to use CPF and take up an HDB housing loan, but the amount will be pro-rated.
The updated rules will take effect from 10 May 2019. Majority of home buyers will not be affected as they are already purchasing a property which lasts them to the age of 95.
Updates to CPF rules for all properties
Use of CPF for property purchase
Previously, the use of CPF to buy properties focused on the remaining lease of the property:
Remaining lease of property
Remaining lease of property
Previous rules on total use of CPF
Previous rules on total use of CPF
60 years or more
60 years or more
Buyer can use CPF to pay for the property up to the Valuation Limit1 (VL)
Buyer can use CPF to pay for the property up to the Valuation Limit1 (VL)
30 years to less than 60 years
30 years to less than 60 years
Buyer can use CPF if the remaining lease of the property covers the youngest buyer until at least the age of 80
Total amount of CPF that can be used is capped at pro-rated VL
Buyer can use CPF if the remaining lease of the property covers the youngest buyer until at least the age of 80
Total amount of CPF that can be used is capped at pro-rated VL
Remaining lease of property is more than 20 years and can cover youngest buyer until at least the age of 95
Remaining lease of property is more than 20 years and can cover youngest buyer until at least the age of 95
New rules on total use of CPF
(with effect from 10 May 2019)
New rules on total use of CPF
(with effect from 10 May 2019)
Yes
Yes
Buyer can use CPF to pay for the property up to the VL
Buyer can use CPF to pay for the property up to the VL
No
No
Use of CPF will be pro-rated based on the extent the remaining lease of the property can cover the youngest buyer to the age of 95. This will help buyers set aside CPF savings for their housing needs during retirement (e.g. a replacement property).
Use of CPF will be pro-rated based on the extent the remaining lease of the property can cover the youngest buyer to the age of 95. This will help buyers set aside CPF savings for their housing needs during retirement (e.g. a replacement property).