Transcription of TERMS AND CONDITIONS FOR THE USE OF CPF SAVINGS TO ...
1 Version , last updated in May 2019 TERMS AND CONDITIONS FOR USE OF CPF UNDER THE CPF HOUSING SCHEMES 1. APPLICATION OF TERMS AND CONDITIONS Parts A and C are applicable to CPF members who use their CPF SAVINGS to buy Housing and Development Board ( HDB ) flats or Design Build and Sell Scheme ( DBSS ) flats under the Public Housing Scheme. Parts B and C are applicable to CPF members who use their CPF SAVINGS to buy or build private residential properties under the Private Housing Scheme. 2. OBJECTIVE OF THE SCHEMES The Public Housing Scheme enables CPF members to use their CPF SAVINGS to buy HDB flats or DBSS flats. The Private Housing Scheme enables CPF members to use their CPF SAVINGS to buy or build private residential properties. Version , last updated in May 2019 PART A - TERMS AND CONDITIONS FOR USE OF CPF UNDER THE PUBLIC HOUSING SCHEME 1. USE OF CPF SAVINGS You may use your CPF Ordinary Account ( OA ) SAVINGS for the following: a.
2 Direct payment of the purchase price of your HDB flat or DBSS flat (including the cost of the common areas) to HDB, DBSS property developer or sellers; b. Repayment of the housing loan in part or whole and/or to pay the monthly instalments of the housing loan1 taken for the purchase of your HDB flat or DBSS flat; c. Payment of the stamp duty, legal fees and other related costs incurred by you in connection with the purchase or mortgage of your HDB flat or DBSS flat; and/or d. Payment of the costs incurred by you in respect of upgrading your HDB flat under the HDB Main Upgrading Programme ( MUP ) and/or Town Council Lift Upgrading Programme ( TCLUP ) in part or whole and/or by monthly instalments. CPF SAVINGS cannot be used for the following: a. Payment of booking fees, option fees or deposit to HDB, DBSS property developers or sellers; b. Payment of resale levy to HDB where applicable; c.
3 Payment of construction works, improvements, repairs and/or renovation of your HDB flat or DBSS flat; d. Payment of monthly service and conservancy charges including all rates, taxes and other charges imposed on your HDB flat or DBSS flat; e. Repayment of non-housing loans ( loans not taken for the purchase of your HDB flat or DBSS flat); f. Payment of purchase price that is above the Valuation Limit ( VL ) for resale HDB flat and DBSS flat. The VL refers to the purchase price or the market value of the flat, at the time of purchase, whichever is lower; and/or g. Reimbursement of any payments made to HDB out of your personal funds in respect of the purchase of your HDB flat. Generally, if you are aged 55 or above, you can only use your CPF OA and Retirement Account ( RA ) SAVINGS in excess of your Basic Retirement Sum ( BRS ) to buy a Studio Apartment or short-lease 2-room Flexi flat with lease of between 15 years and 45 years from HDB.
4 2. CPF WITHDRAWAL LIMITS The use of your CPF SAVINGS towards your HDB flat or DBSS flat is subject to the CPF housing limits. 1 The housing loan must be secured by a mortgage on the property that is owned by the CPF members. Version , last updated in May 2019 For HDB flat or DBSS flat bought: a. before 1 July 2013; or b. from 1 July 2013 but before 10 May 2019 with a remaining lease of at least 60 years at the time of purchase; or c. from 10 May 2019 with a remaining lease that can cover the youngest owner using CPF for the flat till age 95, the maximum amount of CPF that can be used towards the HDB flat or DBSS flat is as below. Type of flat Type of purchase Type of loan Maximum amount of CPF that can be used HDB flat Direct from HDB No loan Up to the purchase price of the flat or such amount as may be required by HDB HDB loan Up to the purchase price of the flat or the housing loan taken to buy the flat HDB flat or DBSS flat Resale HDB loan Up to the VL if you cannot set aside the BRS Up to the housing loan taken to buy the flat if you can set aside the BRS Direct from HDB / Resale Bank loan Up to the VL if you cannot set aside the BRS Up to the Withdrawal Limit2 ( WL ) if you can set aside the BRS For HDB flat or DBSS flat bought from 1 July 2013 but before 10 May 2019 with a remaining lease of less than 60 years but at least 30 years at the time of purchase: a.
5 The maximum amount of CPF SAVINGS that can be used for the HDB flat or DBSS flat is capped at a percentage of the VL. The percentage is computed based on the remaining lease of the flat when the youngest eligible owner using CPF SAVINGS reaches age 55. b. To be eligible to use CPF, your age plus the remaining lease of the flat must be at least 80 years at the time of purchase. c. No CPF SAVINGS can be used if the remaining lease of the HDB flat or DBSS flat is less than 30 years at the time of purchase. For HDB flat or DBSS flat bought from 10 May 2019 with a remaining lease that does not cover the youngest owner using CPF for the flat till age 95: a. The maximum amount of CPF SAVINGS that can be used for the HDB flat or DBSS flat is capped at a percentage of the VL. Table 1 shows a rough guide on how the maximum amount of CPF SAVINGS that you can use for your property changes with age and the remaining lease of the property.
6 2 The WL is 120% of the VL for purchase on or after 1 January 2008. Version , last updated in May 2019 Table 1: Maximum amount of CPF SAVINGS that you can use for your property Age of youngest owner using CPF (in years) 25 35 45 55 Remaining lease of flat (in years) 70 60 80% 100% 50 60% 75% 40 40% 50% 67% b. No CPF SAVINGS can be used if the remaining lease of the HDB flat or DBSS flat is 20 years or less at the time of purchase. For HDB flats purchased under the Fresh Start Housing Scheme ( FSHS ) from 1 December 2016, the time of purchase used for the computation of the WL is: a. The estimated lease commencement date where the lease commencement is in the future; or b. The flat application date where the lease has already commenced. 3. TYPE AND REPAYMENT OF HOUSING LOAN You can choose to finance your HDB flat or DBSS flat with a housing loan from HDB or from a bank that is regulated by the Monetary Authority of Singapore, subject to the eligibility CONDITIONS .
7 The Board will stop all CPF monthly deductions from your CPF account(s) when: a. You have zero balance in your CPF account(s) that you can use for housing payments; and b. You did not receive any CPF contributions for 6 consecutive months. If you wish to use your CPF again for the housing loan instalment payments, you are required to re-apply. The amount of CPF SAVINGS to be withdrawn each month for instalment payments shall not exceed the amount required for the monthly repayment of the housing loan. You have to be insured under the CPF Home Protection Scheme if you are using your CPF SAVINGS to service the housing loan for your HDB flat or DBSS flat. Version , last updated in May 2019 PART B TERMS AND CONDITIONS FOR USE OF CPF UNDER THE PRIVATE HOUSING SCHEME 1. USE OF CPF SAVINGS You may use your CPF Ordinary Account ( OA ) SAVINGS for the following: a. Direct payment of the purchase price of your private residential property to the property developer or sellers; b.
8 Repayment of the housing loan in part or whole and/or to pay the monthly instalment of the housing loan taken for the purchase of your property, land and/or for construction of a house on that land; and/or c. Payment of the stamp duty, legal fees and other related costs incurred by you in connection with the purchase or mortgage of the property and/or construction of the house. CPF SAVINGS cannot be used for the following: a. Payment of option fees to property developers or sellers; b. Payment of construction works, improvements, repairs and/or renovation of your private residential property; c. Payment of monthly service and conservancy charges including all rates, taxes and other charges imposed on your private residential property; d. Repayment of non-housing loans ( loans not taken for the purchase of your private residential property); or e. Payment of purchase price that is above the Valuation Limit ( VL ) for resale private residential property.
9 The VL refers to the purchase price or the market value of the property, at the time of purchase, whichever is lower; and/or f. Reimbursement of any payments made to the property developers or sellers out of your personal funds in respect of the purchase of your private residential property. If you are an undischarged bankrupt, you are not allowed to withdraw your CPF SAVINGS to buy or build private residential property. For private residential properties which are under construction, CPF SAVINGS can be used to meet the progressive payments to the property developers when due. For private residential properties constructed by unlicensed developers, CPF SAVINGS can only be released when the properties are completed up to the roofing stage. 2. ADDITIONAL CONDITIONS ON THE USE OF CPF SAVINGS FOR PURCHASE OF LAND AND CONSTRUCTION OF HOUSE CPF SAVINGS cannot be used to pay the land and/or the construction cost of the house directly.
10 You would have to use your own funds (and seek for reimbursement later) and/or a loan to meet the said payments first. Request for reimbursement of CPF SAVINGS have to be made within six months from the issue of the Temporary Occupation Permit ( TOP ). The reimbursement will be in the form Version , last updated in May 2019 of a one-time payment, subject to available balance in your OA. Monthly withdrawals are not allowed. Application for the above purpose should only be submitted, together with the below documents, after the TOP has been issued: a. Valuation report of the completed property prepared by a licensed valuer. Valuation report prepared by the financier will be considered on a case by case basis. The Board reserves the right to re-asses the value of the property, if necessary; b. Breakdown of contractors' construction costs; c. Original receipts to show evidence of the payments made from your own funds, if you are applying for reimbursement; d.
