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Can I use my CPF for properties with less than 60 years lease left?

02 Aug 2016 
SOURCE: CPF Board

Can I use my CPF for properties with less than 60 years lease left 2.png 

If you're buying a property with a remaining lease of at least 60 years, you can use your CPF savings for the property purchase. The amount of savings you can use will depend on the type of property as well as loan you are taking. More information can be found here.

 

For HDB flats/ private properties with leases of less than 60 years, the following rules apply:

  1. No CPF can be used if the remaining lease of a property is less than 30 years.
  2. A property owner is eligible to use his CPF for the property if his age plus the remaining lease of the property 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 property at the time of purchase. The percentage is computed based on the remaining lease of the property when the youngest eligible member using CPF reaches age 55, as shown below:

Can I use my CPF for properties with less than 60 years lease left.png 

 

Example

Mary (28 years old) and Adam (30 years old) are intending to buy a property with a remaining lease of 57 years.  

 

Remaining lease of property when purchased: 57 years

Property purchase price: $500,000

Value of property: $520,000

 

When Mary turns 55, the remaining lease would be 57 – 27 = 30 years.

 

Maximum amount of CPF that Mary and Adam can use is 30/57 = 0.53 (or 53%) of the lower of the purchase price or value of the flat.

 

Maximum amount of CPF: 53% of $500,000 = $265,000 from their Ordinary Accounts to pay for their property.

 

Here's a calculator to help you determine your eligibility and the maximum amount of CPF you can use to buy a property with remaining lease of less than 60 years, but at least 30 years.

 

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