View Full Version : Guide to using cpf on housing

slow learner
1st May 2012, 02:32 PM
What is the rules to using cpf for housing? Heard cannot use cpf for properties that have short leases on their land? Is it so?

3rd May 2012, 08:46 PM
I understand that you can use your ordinary account savings and the monthly CPF contributions to buy property and to pay the monthly instalments of the housing loan up to the withdrawal limit.

8th May 2012, 02:55 PM
Here is a useful FAQ from HDB on how much CPF you can use for leasehold properties. Basically, the Minimum Lease Period (MLP) is now 30 years and the CPF that can be withdrawn depends on the property lease and CPF member age. The formula is

Remaining lease when member is 55 years old / Property lease at the point of purchase x (purchase price or valuation whichever is lower)

For example, if a CPF member aged 38 years old buys a leasehold property with 48 years remaining, the maximum CPF that he or she can withdraw from CPF, is

(48 - (55 - 38)) / 48 x (purchase price or valuation whichever is lower)

PS the maximum CPF withdrawal is also subject to the CPF Minimum Sum if CPF member owns more than 1 property