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When you reach the 100% VL, you may continue to use your CPF savings to repay the housing loan (up to the applicable Housing Withdrawal Limit), provided you have sufficient AHWL. |
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The AHWL ensures that members have at least the Minimum Sum cash component set aside for retirement.
This is important as any CPF monies used beyond the value of the property stand a higher risk of not being refunded to members' CPF when the property is sold, eg. low property prices during a market downturn.
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| * Special Account balance (including the amount used for investment) and Ordinary Account balance are used to meet the Minimum Sum cash component. |
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| The AHWL is a moving limit. For example, the AHWL changes when:
you have new CPF contributions (the figure goes up).
the Minimum Sum increases (the figure goes down). |
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| It’s thus possible for a member who’s now unemployed to reach the AHWL, and be able to use more CPF for housing when he has CPF contributions after getting a job. |
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| Important points to note |
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The AHWL is a moving limit.
Using your CPF to make a lumpsum/capital repayment on your housing loan may make you reach the AHWL earlier, but it will reduce the interest charges.
The Board informs members three months before the VL is reached and the AHWL becomes applicable. | |
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