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News Release by:
Central Provident Fund Board
15 OCTOBER 2003 -- |
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As announced by DPM and Minister for Finance during his Parliamentary Statement in August, the Government is providing a short term loan at a concessionary rate to help Singaporeans and Singapore permanent residents who have difficulty meeting the shortfall in their monthly housing instalment as a result of the recent CPF changes. |
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The Government Bridging Loan Scheme (GBL) will be available to those who are currently using their CPF savings to service the following types of properties:
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HDB flats where the loan from HDB or a bank is at the market interest rate |
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private residential properties, including Executive Condominiums; |
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HUDC flats; and |
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non-residential properties; |
These properties must have been bought before 1 October 2003.
Application forms are available at all CPF offices and on the CPF website. Members who wish to apply for the GBL should complete the application form and submit it to the CPF Board together with the following documents:
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his/her latest pay slip |
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a letter from his/her financier indicating that the housing loan has been rescheduled, or that the financier is unable to reschedule his/her housing loan |
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For HDB flats financed with a HDB loan, a letter from HDB indicating the date of purchase of the flat and that the loan is at market interest rate. | |
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The GBL will be available for a period of 3 years and 2 months from 1 November 2003 to 31 December 2006. CPF members can check their Statement of Account to estimate when the balances in their CPF Ordinary Account and Special Account will be exhausted. Members can start applying for the GBL three months before their accounts are depleted. However, the loan will only be disbursed after the applicant has used up all the savings in his Ordinary and Special Accounts. For further details on the calculations, please refer to the CPF website. |
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The GBL will be disbursed monthly and the maximum amount of loan released each month will be the shortfall in the monthly loan instalment or the amount of cut in the CPF Ordinary Account contribution, whichever is lesser. |
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Once the GBL is approved, the loan amount will be credited into the borrower’s CPF account and deducted automatically by the CPF Board for monthly repayment of the housing loan. |
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The interest charged on the bridging loan is at a concessionary rate of 0.1% above the prevailing CPF interest rate. |
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A member who has applied for GBL will not be allowed to make new investments under the CPF Investment Scheme from the date of application until the GBL is fully disbursed. |
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CPF members can repay the GBL with cash or through contributions in the member’s Ordinary Account. Repayment will start on 1 January 2008 or when the applicant reaches 63 years old, whichever is earlier. The maximum repayment period is 5 years, with full repayment required immediately upon the disposal of the property. |
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Members with enquiries can call the CPF Call Centre at 1800-227-1188 (Code 2 for HDB flats or Code 3 for residential and non-residential properties).
Members can also log on to the CPF website for more information. |
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