Withdrawal Limit for Purchase of a Resale HDB Flat – Property for sale Singapore

Withdrawal Limit for Purchase of a Resale HDB Flat – Property for sale Singapore

The total CPF savings which a member can withdraw to buy a resale HDB flat is subject to the Valuation Limit (VL) as determined by the CPF Board. The VL is the purchase price or the market value of the flat, at the time of purchase, whichever is lower. Property for sale Singapore.

A member who takes up a housing loan from the Housing & Development Board or from a bank to buy a resale HDB flat may use the CPF savings in his Ordinary Account to meet the monthly instalment payment of the housing loan. If the housing loan is still outstanding when the total CPF withdrawals towards payment of the flat has reached the VL, he may continue to use his CPF Ordinary Account savings to repay the housing loan under the following conditions stipulated in the table below. Property for sale Singapore.

Loan From Type of Home Applicable Limits Conditions to use CPF beyond VL
HDB New flat No limit None. You can use your CPF until the loan is fully paid.
Resale HDB flat/DBSS flat VL Below 55 years old
To set aside the current Basic Retire Sum (BSR) in your Special Account (SA)* and Ordinary Account (OA).
55 years old and above
To meet the BRS in your Retirement Account (RA), SA* and OA.* including the amount withdrawn for investment.For bank loan, you can only use your CPF up to WL.
Bank New HDB flat/Resale HDB flat/DBSS flat VL and WL

Additional rules apply to the use of CPF for flats with remaining lease of less than 60 years, as follows:
(1) No CPF can be used if the remaining lease of a flat is less than 30 years. Property for sale Singapore.
(2) A flat owner is eligible to use his CPF for the flat only if his age plus the remaining lease of the flat is at least 80 years.
(3) The maximum amount of CPF that can be used is capped at a percentage of the lower of the purchase price or the value of the flat at the time of purchase. The percentage is computed based on the remaining lease of the flat when the youngest eligible member using CPF reaches age 55, as shown below:

“Remaining lease when the youngest eligible owner using CPF turns 55” divided by “Remaining lease at the time of purchase” and multiplied by “Lower of the purchase price or the value of the flat at the time of purchase”.

Source: CPF website

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