Loan and CPF

[mcpqueen]

If husband and wife purchase a property together, however the loan of the property is only taken under the husband name. That is only the husband is the borrower, can the loan be service using wife CPF monthly contribution?:confusion:

[mhhouse]

I think wife can still use her CPF to service the home loan. What say you HalcyonVI?

[HalcyonVI]

Yes, should be fine as long as the wife is also an owner of the property on paper.

[bookworm]

I understand from a lawyer that for CPF to be used to service the loan, the loan must be taken by the CPF holder.

[HalcyonVI]

The person who wants to pay down the housing loan using CPF has to be a mortgagor but does not have to be a borrower. A mortgagor basically means an owner who agrees to pledge the property to get a housing loan whereas a borrower is primarily responsible for servicing the home loan. A borrower, if he's not a mortgagor, cannot service the loan using CPF; a mortgagor, regardless whether borrower or not, can use CPF to service the housing loan. But even if you are a mortgagor, you must still get your lawyer to process the paperwork required to drawdown from your CPF money, ideally when you take up your home loan. You can only use CPF to service your loan after the paperwork is done.