TERMS AND CONDITIONS FOR THE USE OF CPF SAVINGS TO
PURCHASE HDB FLATS UNDER THE PUBLIC HOUSING SCHEME
(USING HDB CONCESSIONARY LOAN)
1.
2.
2.1
The objective of the Public Housing Scheme (PHS) is to help CPF members buy
a flat in Singapore with the use of their CPF savings.
Use of CPF Savings
A member is allowed to withdraw his Ordinary Account savings under PHS for:
a)
Direct payment of purchase price of the flat, including cost of common
areas, to the HDB, financier and/or sellers. The approved CPF savings will
only be released after the member has paid the balance (i.e. purchase price
less housing loan and the approved CPF savings that can be used for the flat
purchase) in cash. The purchase price that is above the value of the flat has
to be paid in cash;
b) Repayment of housing loan in part or whole and/or to pay the monthly
instalments of the housing loan taken for the purchase of the flat; and
c)
2.2
Payment of stamp duty, legal fees, and other related costs incurred related
to the purchase or mortgage of the flat.
A member aged 55 and above can use his CPF Ordinary Account and
Retirement Account savings in excess of his Basic Retirement Sum to buy a
Studio Apartment or short-lease 2-room Flexi flat with lease of between 15
years and 45 years.
CPF housing limits for flats with remaining lease of at least 60 years
3.
3.1
New HDB Flat
The first withdrawal of CPF savings to meet the deposit for the purchase of a
new HDB flat shall not exceed 10% of the purchase price or such amount as may
be required by HDB.
3.2
The amount withdrawn to meet the deposit with accrued interest shall be
refunded to the member's CPF account when the member cancels his
agreement to purchase the HDB flat.
3.3
A member who takes up a HDB housing loan to buy a new HDB flat can use all
the CPF savings in his Ordinary Account to meet the monthly instalment
payment of the housing loan.
4.
Resale HDB Flat / Design Build Sell Scheme (DBSS) Flat
4.1
The total CPF savings which a member can withdraw to buy a resale HDB flat /
DBSS flat is subject to the Valuation Limit as determined by the Board. The
Valuation Limit is the purchase price or the market value of the flat, at the time
of purchase, whichever is lower.
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4.2
A member who takes up a HDB housing loan to buy a resale HDB flat / DBSS flat
can use the CPF savings in his Ordinary Account to meet the monthly instalment
payment of the housing loan.
4.3
If the HDB housing loan is still outstanding when the total CPF savings
withdrawn towards payment of the flat has reached the Valuation Limit and the
member is below age 55, he can continue to use his CPF Ordinary Account
savings to repay the housing loan after setting aside the current Basic
Retirement Sum in his Special Account (including the amount used for
investments) and Ordinary Account.
4.4
However, if the member is 55 years and above when the Valuation Limit is
reached, he can use his CPF Ordinary Account savings to repay the housing loan
after setting aside his Basic Retirement Sum in his Retirement Account, Special
Account (including the amount used for investments) and Ordinary Account.
CPF housing limits for flats with remaining lease of less than 60 years
but at least 30 years (wef 1 July 2013)
5.
Additional rules apply to the use of CPF savings for flats with remaining lease
of less than 60 years, as follows:
a) No CPF can be used if the remaining lease of a flat is less than 30 years.
b) A flat owner is eligible to use his CPF savings for the flat only if his age plus
the remaining lease of the flat is at least 80 years.
c) The maximum amount of CPF savings that can be used is 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
Remaining lease at the time of purchase
Lower of the purchase price
X or the value of the flat at the
time of purchase
6.
6.1
Monthly Repayment
The amount of CPF savings to be withdrawn each month for instalment payments
shall not exceed the amount required for the monthly repayment of the HDB
housing loan.
6.2
For a member who has applied to use his CPF savings for the monthly repayment
of housing loan, the Board will cease the CPF monthly deduction when there is no
CPF contribution for six consecutive months and no CPF savings that can be used
for housing. If he wishes to use his CPF savings for the monthly repayment of
housing loan subsequently, he can apply again by submitting an application form.
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7.
Use of CPF Savings for Upgrading of HDB Flat
7.1
A member will be allowed to use his CPF savings to pay the cost of upgrading
his HDB flat incurred under the HDB Upgrading Programmes and Town Council
Lift Upgrading Programme (TCLUP) in part or whole and/or by monthly
instalments. However, CPF savings cannot be used for construction works,
improvements, repairs and renovations of the flat.
8.
Sale/Mortgage/Transfer/Assignment of Flat
8.1
The consent of the CPF Board must be obtained before any HDB flat purchased
through the use of CPF savings is sold, mortgaged, transferred or assigned.
8.2
As provided in the CPF (Approved Housing Scheme) Regulations, all CPF savings
withdrawn by a member under PHS together with any interest that would have
accrued if the withdrawal had not been made have to be refunded to the
member’s CPF account on the occurrence of any of the following events:
a)
if the property or any interest therein is sold, transferred, assigned or
otherwise disposed of by the member;
b)
if the property or any interest therein is sold, transferred, assigned or
otherwise disposed of by any other person with or without the consent of
the Board;
c)
if any mortgage or encumbrance is created over the property in favour of
a person other than an approved mortgagee without the consent of the
Board; or
d)
if the member has committed a breach of any of the terms and conditions
imposed by the Board in connection with the withdrawal of CPF savings
under PHS.
9.
Application
The application form, together with the relevant documents (if any), are to be
submitted to the Board one week before the release of CPF savings.
10.
Payee/Recipient of CPF Savings
Any withdrawal made by a member for the property shall not be paid to the
member but shall be paid directly to HDB, Town Councils or such other entity as
the Board thinks fit to receive the CPF savings.
11. Other Conditions for Use of CPF Savings
11.1 The Board reserves the right to value the property before releasing CPF savings.
The valuation fees shall be paid by the member.
11.2 Monthly service and conservancy charges including all rates, taxes and other
charges imposed upon the HDB flat cannot be paid with CPF savings.
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11.3 Any payments made by the member to HDB out of the member's personal funds
in respect of the purchase of a HDB flat cannot be reimbursed with CPF savings.
11.4 Any member who has purchased a property under the PHS by making a false
statement or declaration, or furnishing any information or document which he
knows to be false in material or who allows such property to be used for any
immoral, illegal or unauthorised purposes, or who contravenes any of the
conditions under PHS, shall be guilty of an offence under the CPF Act. The Board
shall in such circumstances, be entitled to seize the property and sell it to recover
the amount of CPF savings that has been withdrawn plus accrued interest.
12.
Home Protection Scheme
12.1 A member shall, subject to good health satisfactory to the Board, be covered
by the CPF Home Protection Scheme (HPS) if he is below 65 years old and is
using his CPF savings to service his HDB housing loan. However, he may apply
for exemption if :
13.
(i)
the outstanding housing loan on the HDB flat is not more than $3,000/and the remaining period of repayment is not more than two years; or
(ii)
he already has an alternate mortgage or life insurance policy which is
sufficient to cover his outstanding housing loan.
The member shall furnish to the Board such documentary evidence as is
required by the Board.
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