CPF
1. Rules on CPF Usage (Updated 10 May 2019)
2. Seller at/ above 55 years old. What will be the different if I sold my house at 55 years old or older?
3. Use of CPF for 2nd / subsequent properties - For Private Residential
Rules on CPF (updated 10 May 2019)
Use of CPF for property purchase (Private & HDB)
Youngest Buyer Age + Remaining Lease of Property
= MORE than 95 years
Use of CPF: 100% of Valuation Limit *
Youngest Buyer Age + Remaining Lease of Property
= LESS than 95 years
Use of CPF: Pro-rated of Valuation Limit *
Use CPF Calculator to determine your eligibility and the maximum amount of CPF you can use
* CPF savings will not be granted to fund the purchase of property if the remaining lease at the point of purchase^ is 20 years or less.
^ For HDB flat, refers to the flat application date. For EC or private properties, refers to the Option to Purchase or Sale & Purchase Agreement exercised date.
Seller at / above 55 years old
For seller who sold a property at age 55/ above, the only different is the CPF. There are 2 types of cash you will get from: -
Cash Proceed from sale of property & Refunded Cash from CPF.
Cash Proceed from Sale of Property (if any)
Selling price minus outstanding loan, minus total used CPF + interest that used for the sold property.
The total will be the cash you will get after selling your property.
Cash Proceed from Sale of Property (if any)
=
Property Sold Price
-
Outstanding Loan
-
Used CPF + interest
Refunded cash from CPF (if any)
Used CPF + interest that used for the property minus retirement shortfall, minus property pledge will be the cash that CPF will refund to you.
Refunded Cash from CPF (if any)
=
Used CPF + interest
-
Retirement Shortfall
-
Property Pledge
Total CASH you will get from selling a property = Cash Proceed + Cash refunded by CPF
To purchase next house after selling, your CPF can be use for next purchase will be your current ordinary account (OA) + property pledge
Budget for next house = Cash + CPF + Loan
Use of CPF for 2nd / subsequent properties
Scenario 1:
When your Special Account (SA) is less than half of minimum sum*:
CPF can be use = OA - [ (Minimum sum / 2) - SA ]
Scenario 2:
When your Special Account (SA) is more than half of minimum sum*:
You can use all the money is your Ordinary Account (OA) for your 2nd / subsequent properties.
* For buyer below 55 years old, minimum sum for Year 2018 is $171,000.
* For buyer 55 years old or above, minimum sum refer to the year when the buyer reach 55 years old.
