Use of CPF funds, HDB loans tightened for public housing

SINGAPORE : As part of the cooling measures for the property market, limits have been set for granting of HDB loans and the use of CPF funds for the purchase of public housing with remaining leases of less than 60 years.

They will take effect on 1 July 2013.

If the remaining lease of the HDB flat is between 30 and 59 years, the use of CPF funds is allowed, except for buyers for whom the remaining lease cannot cover them to the age of at least 80.

The total CPF usage by the household will be the pro—rated Valuation Limit based on the ratio of the remaining lease when the youngest buyer who can use CPF turns 55 years old, to the lease at point of purchase.

If the remaining lease of the HDB flat is 29 years or less, use of CPF funds is not allowed.

As for HDB housing loan, if the remaining lease of the HDB flat is between 20 and 59 years, it will be allowed if remaining lease can cover the buyer to the age of at least 80, and loan tenure will be the shortest of 30 years or 65 years minus average age of buyers or balance lease at the point of purchase minus 20 years.

If the remaining lease of the HDB flat is below 20 years, HDB loan will not be granted.

— CNA/al