TERMS & CONDITIONS ON THE USE OF CPF FOR PURCHASE OF HDB FLATS FINANCED WITH BANK LOANS
	1.	OBJECTIVE
		The objective of the Scheme is to help CPF members buy a flat in Singapore for occupation.
	2.	USE OF CPF SAVINGS
		A member is allowed to withdraw his Ordinary Account savings under the Scheme for:
		a) Direct payment of purchase price of the flat, including cost of common areas, to the HDB and/or sellers. This amount will only be released when member has paid the cash difference (purchase price less housing loan and CPF lumpsum);  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; c) Payment of stamp duty, legal fees, and other related costs incurred in connection with the purchase or mortgage on the flat; d) Payment of the cost of upgrading the HDB flat incurred under the HDB Main Upgrading Programme (MUP) and/or Town Council Lift Upgrading Programme (TCLUP), in part or whole and/or by monthly instalments.     *The housing loan should be for a fixed term and secured by a mortgage on the property, which is owned by the member.
	3.	CPF CHARGE
		A CPF Charge on the flat is effected immediately upon the release of CPF monies for the flat. The Charge shall be in force until the CPF released towards the flat, including the interest accrued, are refunded into the member’s account as required by the Board, or when the member is eligible to withdraw under Section 15 of the CPF Act. The Board may, where it deems fit, accept an application and release information regarding the Board’s charge on a flat to any public authority and/or members of the public. An administration fee of $21.00 (including GST) will be imposed for the release of information.
	4.	WITHDRAWAL LIMIT
		The lumpsum CPF withdrawn plus the loan taken for the purchase of the flat cannot exceed the Valuation Limit (VL), which is the lower of the purchase price or market value of the flat at the time of purchase as assessed by the Board. The Board reserves the right to release monies based on the value of the property as assessed by the Board. If the housing loan is still outstanding when the Valuation Limit (VL) is reached, flat owners may use further CPF savings up to the CPF Withdrawal Limit (WL) if they can set aside the prevailing Minimum Sum cash component in their Ordinary and Special Accounts. The table below shows the schedule of the WL over the years:
		Date of Purchase (i.e. S&P agreement) CPF Withdrawal Limit (WL) 1 Jan 2003 – 31 Dec 2003 150% of VL 1 Jan 2004 – 31 Dec 2004 144% of VL 1 Jan 2005 – 31 Dec 2005 138% of VL 1 Jan 2006 – 31 Dec 2006 132% of VL 1 Jan 2007 – 31 Dec 2007 126% of VL 1 Jan 2008 onwards 120% of VL
		Where a member has used CPF for a private property before 1 July 2006, and applies to use CPF for a flat purchased on or after 1 July 2006, he is required to set aside the prevailing Minimum Sum cash component, or Minimum Sum cash component shortfall if he is aged 55 and above, before he can withdraw any excess in the Ordinary Account for the flat. Savings in the Special Account (including the amount used for investment) and Ordinary Account can be used to meet the prevailing Minimum Sum cash component, or Minimum Sum cash component shortfall if he is aged 55 and above. The withdrawal limit for the second and subsequent properties will be set at 100% of the VL.
	5.	ABORTIVE PURCHASE
		The member shall refund to his account all the monies he had withdrawn for the flat if he withdraws his application for the purchase of the flat, or if the agreement entered into by the member and any person for the purchase of the flat is rescinded.
	6.	NOTIFICATION OF CHANGES TO LOAN DETAILS
		The member, who had used CPF towards the purchase of the flat, and his financier (if any) are required to notify the Board of the following:
		a) full redemption of the housing loan b) refinancing or re-mortgage of the flat c) increase in loan quantum approved by the financier (Note: If the quantum exceeds the CPF Withdrawal Limit, the Board may require the member and his financier to maintain a separate loan account for the excess sum.) d) Changes in term of loan (applicable if using CPF for monthly instalment payment)
	7.	APPLICATION TO WITHDRAW CPF SAVINGS
		All applications must be submitted on official application forms which are obtainable from the Board. The forms are to be submitted to Public Housing Section – Bank Loan at 31st storey, CPF Building, 79 Robinson Road, Singapore 068897. The application has to be submitted to the Board at least 3 weeks prior to the payment due date. Members are required to furnish the Board all such information, evidence and documents as the Board may require for the release of the members’ CPF in respect of the flat.
		If the members are submitting the HBL/3 application to use their CPF savings to effect a full redemption of the housing loan, they are required to submit the financier’s statement on loan outstanding, together with the HBL/3 application.
		In the event the member submits a second application while the first application is still being processed by the Board, the second application will be deemed to supersede the first application.
	8.	APPOINTMENT OF LAWYER
		Where HDB is not acting for the member, the Board may appoint a lawyer to disburse the CPF monies withdrawn from the member’s account for payment to the relevant parties for the completion of the flat purchase, and/or collect the repayment of the CPF monies into the member’s account upon the sale, transfer, assignment or otherwise disposal of the flat. For flats under the Design, Build and Sell Scheme (DBSS), the Board's lawyer will also liaise with member's lawyer to reserve CPF monies for subsequent progress payment. The costs incurred shall be borne by the members. The indicative costs are as follows: Disbursement of CPF Monies Recovery of CPF Monies (not payable using CPF savings) *Legal Fees for non-DBSS flats less-than-or-equals to $220/ less-than-or-equals to $175/ *Legal Fees for DBSS flats less-than-or-equals to $320/ less-than-or-equals to $175/
		*The costs indicated above exclude GST, and may vary depending on the nature of work and members’ application.
	9.	OTHER CONDITIONS
	a)	In the event that a member passes away after his application to use his CPF for the flat is accepted by the Board, but before the payment is released from his account, no payment will be released from his account for the purchase or payment of the flat or housing loan
	b)	Members who already own a property bought with their CPF savings and wish to buy another property with CPF savings on or after 1 July 2006, will be given a grace period if they intend to sell the existing properties. The grace period is as follows:
		i) 6 months from date of issue of the Temporary Occupation Permit (TOP) if the new property is under construction
		ii) 6 months from date of completion of purchase if the new property is a completed property. Where members bought their first property before 1 July 2006, and apply to use CPF for the first property only after making an application to use CPF for the second property bought after 1 July 2006, the multiple property (MP) rule will apply to the second property. For example:
	10.	NOTIFICATION OF SALE AND REFUND OF CPF MONIES
		A member, who had used CPF towards the purchase of the flat, and his financier (if any) are required to notify the Board of the intended sale, transfer, assignment and otherwise disposal of the flat one month prior to the completion of the transaction. The member and/or his financier are to furnish the Board with the redemption statement cof the housing loan four weeks prior to the completion of sale, transfer, assignment or otherwise disposal of the flat. The member is required to refund the CPF savings withdrawn plus accrued interest to his CPF account upon the sale, transfer, assignment or otherwise disposal of the flat, if he has not yet qualified for withdrawal of CPF savings under Section 15 of the CPF Act. Otherwise, if the member is aged 55 and above and qualifies for withdrawal of his CPF savings under Section 15 of the CPF Act, he is required to refund to his account the Minimum Sum for which the property is pledged plus the accrued interest, if he has pledged the property in lieu of the Minimum Sum.
	11.	PENALTY FOR FALSE DECLARATION AND MIS-USE OF PROPERTY
		Any member who has purchased a property under the Scheme 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 unauthorized purposes, or who contravenes any of the conditions under the Scheme, 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.