New rules on buying homes using CPF or HDB housing loans will be introduced.
The changes, which apply to the purchase of HDB flats, private properties and executive condominiums, take effect on Friday (May 10).
Under the current rules, the amount of CPF allowed to be used is dependent on the remaining lease of the property. With the changes, the total amount of CPF that can be used will depend on whether the remaining lease can cover the youngest buyer until age 95.
For those looking to take an HDB housing loan, buyers will be eligible to take the full 90% Loan-to-Value limit, if the remaining lease can cover the youngest buyer to the age of 95. This is even if the flat has less than 60 years left on its lease.
There will also be changes to the CPF withdrawal rules after age 55.
CPF members who want to withdraw their CPF savings above the Basic Retirement Sum will need to have a property with a remaining lease to cover them until at least age 95.
– 09 May 2019