BUYING A PROPERTY WITH REMAINING LEASE OF LESS THAN 60 YEARS BUT AT LEAST 30 YEARS

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1) How much of my CPF savings can I withdraw to buy a property with remaining lease of less than 60 years but at least 30 years?

You can use your Ordinary Account savings, and the future monthly CPF contributions in this account to buy the property and/ or to pay the monthly installments of the housing loan up to the applicable Withdrawal Limit (WL).

The applicable WL is set at a level that covers the estimated depreciated value of the property when the member reaches the CPF withdrawal age of 55 years. It is calculated based on the ratio of the remaining lease when the member is 55 years old, to the lease at the point of purchase.

Example:

A 35 year old member buys a private property with 50 years of lease remaining. When the member turns 55 years old, the property will have 30 years of lease remaining.Hence, the applicable WL = 30/50 x 100% = 60% of *Valuation Limit

Valuation Limit is the lower of the purchase price or the value of the property at the time of purchase.

For details of applicable WL, please refer to the above table.

2) I am 30 years old and I wish to buy a private property which has a remaining lease of 59 years and 11 months.Would I be eligible to withdraw my CPF savings up to 100% of valuation limit?

No. As the property has a remaining lease of less than 60 years, a lower withdrawal limit will be applicable for your case. Based on the property remaining lease of 59 years and your age of 30 years, you may withdraw up to 58% of the valuation limit for the property. Once this limit is reached, you cannot withdraw more CPF savings for the property.

3) I am now 40 years old. Can I buy a property with a remaining lease of 30 years?

No. You cannot use your CPF to buy this property as the remaining lease of 30 years will not last you till 80 years old.