Use of CPF savings for purchase of land and construction of house – property for sale Singapore
a) A member is not allowed to use his CPF savings to pay directly for the land cost and the construction costs of the house. He would have to use his own funds and/or a loan to meet the said payments first. Property for sale Singapore.
When the house has been completed up to the Temporary Occupation Permit stage, the member can then use his CPF savings to repay the loan. Reimbursement of the land and construction costs paid by him with his own funds can only be allowed if the house is constructed on or after 1 Oct 1993 and the construction of the house has commenced within six (6) months from completion date of purchase of the land. If the construction of the house has commenced more than six (6) months after the completion date of purchase of the land, he can only use his CPF savings to reimburse himself for the construction costs. Property for sale Singapore.
b) Requests for reimbursement of CPF savings have to be made within six months after the issue of the Temporary Occupation Permit. The reimbursement will be in the form of a one-time payment. Monthly withdrawals are not allowed. Requests for further reimbursement from the members’ future CPF savings are also not allowed. Property for sale Singapore.
c) Members can submit their applications, with the following documents, three months before the issue of the Temporary Occupation Permit:
(i) 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-assess the value of the property, if necessary.
(ii) Breakdown of contractors’ construction costs.
(iii) Original receipts to show evidence of the payments made from your own funds (if applying for reimbursement).
(iv) Financier’s Letter of Offer for the land/construction loan(s).
(v) Grant of written permission from Urban Redevelopment Authority (URA) for the proposed “reconstruction” or “erection” of the new property.
Source: CPF website
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