SINGAPORE: New rules on buying homes using CPF or HDB housing loans will be introduced, that will focus on whether the lease of the property can cover the buyer until at least age 95.
This was announced on Thursday (May 9) by the Ministry of National Development (MND) and Ministry of Manpower (MOM).
The changes, which apply to the purchase of HDB flats, private properties and executive condominiums, take effect on Friday (May 10).
Under the current rules, the amount of CPF allowed to be used is dependent on the remaining lease of the property. For instance, if there is at least 60 years left in the lease, a buyer can use the maximum CPF allowed to pay for the property.
If the property has less than 60 years left on its lease, a buyer is eligible to use CPF if his age plus the remaining lease is at least 80 years.
With the changes, the total amount of CPF that can be used will depend on whether the remaining lease can cover the youngest buyer until age 95.
Read more at https://www.channelnewsasia.com/news/singapore/hdb-loan-cpf-rules-buy-property-flats-home-11518170
Adapted from CNA 9 My 2019