National Development Minister Lawrence Wong said in Parliament on Thursday morning (March 7) that his ministry is looking into relaxing Central Provident Fund (CPF) loan rules on the purchase of older Housing Board resale flats, and will announce the changes soon for implementation in May this year.
He referred specifically to the restriction in CPF usage for flats with less than 60 years of lease remaining. About 90,000 of the total stock of about one million HDB flats are more than 40 years old.
“Some banks take reference from these CPF restrictions when assessing how much loan to extend. As a result, both the CPF and loan quantums may be reduced for the purchase of such flats.
– Updated Mar 8, 2019