Use of CPF Funds for Homes With Less Than 60 Years Lease

Use of CPF Funds for Homes With Less Than 60 Years Lease

Balance lease of HDB Flat at time of purchase Eligibility to use CPF Funds (wef 1 July 2013) Example
Less than 30 years Cannot use CPF funds at all to purchase
30 years – 59 years Can use CPF funds to purchase if:
Age of youngest eligible owner plus the balance lease of the HDB Flat is a minimum of 80 years and up
– If you are 23 years old and the balance lease of the HDB Flat is 50 years, this adds up to 73 years. This does not meet the min. of 80 years criterion.
The maximum amount of CPF that can be used is: 

RATIO OF Balance Lease of HDB Flat when youngest eligible owner becomes 55 years old

 

TO Balance Lease of the HDB Flat at time of purchase

 

MULTIPLIED BY the price of the property at time of purchase or the valuation of the property (whichever amount that is lower)

– If you are 30 years old and the HDB Flat has a balance lease of 58 years.
It takes 55-30 = 25 years for owner to reach 55 years old.
By then, the balance lease of the HDB Flat is 58-25 = 33 years.Hence, Maximum CPF usage is 33 / 58 = 57%
More than or equal to 60 years Can use CPF funds to purchase (no change in status from before)

(Note: This set of rules is applicable to private condo Singapore property as well.)

CPF Table For Less Than 60 Years Lease Property
CPF Table For Less Than 60 Years Lease Property / Credits: CEA 10 Jul 2013

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