| Q1: |
Can
I use my CPF savings to purchase a private property? |
|
| Yes.
Under the Approved Residential Properties Scheme by the CPF Board,
you can use your CPF savings for the following purposes: |
| a) |
Pay the purchase price of the property |
| b) |
Redeem a housing loan taken for
the purchase of a residential property |
| c) |
Monthly installments of existing
housing loan |
| d) |
Repay a housing
loan taken for the purchase of land and the construction of a house
on that land |
| e) |
Pay for stamp duty, valuation and
legal fees on transfer or conveyance in the purchase or mortgage
of a property |
| However,
you cannot use you CPF savings for the deposit or down payment;
monthly service and conservancy charges; property tax; renovations,
and repair of your property. |
|
| Q2: |
What
are the limitations in using my CPF savings to purchase a private property?
|
|
The following conditions must be met
when using your CPF savings for buying properties:
| a) |
Leasehold properties bought cannot
have less than 60 years left in the tenure. |
| b) |
Only immediate family members can
combine their CPF savings to buy a property, and they can use
up to 100 % of their Ordinary Accounts. However, the total amount
(lump sum and monthly installments) withdrawn by all joint
owners should not exceed the purchase price of the property. |
| c) |
The CPF Board must approve the sale
of the property before the property is sold, mortgaged or transferred.
After the sale of the property, all money withdrawn from your CPF
account, must be returned to your CPF savings. The money return
must include the principle sum withdrawn and the accumulated
interest of the sum withdrawn. |
| d) |
There must be a lapse of 1 year
from the date of the signing of the Sale & Purchase agreement
before CPF members can re-use their refunded CPF savings and accrued
interest. However, this rule does not apply to those who are upgrading
from HDB flats to private properties. |
|
| Q3: |
When
must I apply to the CPF Board for approval if I intend to use my CPF to
purchase a property? |
|
You must do so as soon as possible because
the CPF approval can take up to 3 weeks, and the Bank loan would only
be released after the CPF has released the funds from your savings account.
|
| Q4: |
What
is the amount of CPF savings that can be utilized? |
|
You may use 100% of the existing savings
in the Ordinary account, and 100% of your future monthly CPF contributions
that are paid to your ordinary account.
|
| Q5:
|
What
amount of the CPF can I use if I am purchasing the property with my sister
who also wants to use her CPF? |
|
Immediate family members
may jointly use up to 100% of their Ordinary Account balances to buy
a property. However, the total amount (lump sum and monthly installments)
cannot be more than the purchase price of the property.
|
