• Published Date: 09 May 2019

    Today, MND and MOM announced the updated rules on CPF usage and HDB housing loan to give buyers more flexibility when buying a home for life, while safeguarding their retirement adequacy.  Under the updated rules, the total amount of CPF that can be used for a property purchase will depend on the extent the remaining lease of the property can cover the youngest buyer to the age of 95. With this update:

    a) Buyers who buy a residential property (private and public housing) with a remaining lease that can cover the youngest buyer to the age of 95 and beyond, can use the CPF to pay for the property up to the valuation limit. The HDB housing loan amount that they may take to buy an HDB flat will be up to 90% of the lower of the flat’s purchase price or value (“90% loan-to-value”).

    b) Buyers who buy a residential property (private and public housing) with a remaining lease that does not cover the youngest buyer to the age of 95 and beyond, the CPF usage will be pro-rated based on the extent the remaining lease of the property can cover the youngest buyer to the age of 95. The HDB housing loan amount that they may take to buy an HDB flat will be pro-rated from the 90% loan-to-value limit.  

    To ensure prudent use of CPF monies, there will still be a minimum lease requirement for the use of the CPF for property purchases. Nevertheless, this will be lowered from the current 30 years to 20 years, in line with the existing criterion for HDB housing loans.  

    In addition, CPF members will now need to have a property with sufficient remaining lease to cover them to the age of 95 and beyond, before they can withdraw their CPF savings above the Basic Retirement Sum.

    The updated rules will apply to resale flat applications submitted to HDB on or after 10 May 2019.

    For more details, you may refer to the press release.


    Please disseminate the information to your salespersons. Thank you.