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There's a maximum limit to the amount of CPF savings that can be used for housing. |
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| The limit applies to those who: |
buy a HDB flat from 1 January 2003, financed with a bank loan.
refinance their HDB concessionary loan with a bank loan from 1 January 2003.
take a bank loan to buy a private property from 1 September 2002.
refinance an existing housing loan taken before 1 September 2002 for a private property from 1 September 2002.
The applicable limit depends on when the property is purchased or when the housing loan is refinanced (please see table below). The limit will be reduced progressively by 6 per cent a year to 120 per cent in 2008. Private properties with remaining leases of less than 60 years but at least 30 years, will have lower limits. |
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The use of CPF to pay the interest on housing loans is essentially consumption (ie. an expense), which does not add to the property value.
Excessive amounts used to pay interest will affect CPF members’ ability to save enough CPF for retirement needs. |
| Calculate how much interest you’re paying on a housing loan! |
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| Unlike the AHWL which is a moving limit, the 120% - 150% limit is fixed. |
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| Once it is reached, CPF members will not be able to withdraw any more CPF for their property (the limit applies to a particular property, so members can use CPF for other properties which have not reached the limit). |
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| Date of Purchase or Loan Refinancing |
HDB Flat* (bank loans) |
Private Property^ |
| 1 Sep 2002 - 31 Dec 2002 |
Not applicable |
150% of VL |
| 1 Jan 2003 - 31 Dec 2003 |
150% of VL |
150% of VL |
| 1 Jan 2004 - 31 Dec 2004 |
144% of VL |
144% of VL |
| 1 Jan 2005 - 31 Dec 2005 |
138% of VL |
138% of VL |
| 1 Jan 2006 – 31 Dec 2006 |
132% of VL |
132% of VL |
| 1 Jan 2007 – 31 Dec 2007 |
126% of VL |
126% of VL |
| 1 Jan 2008 onwards |
120% of VL |
120% of VL | |
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* For purchase of new flats, it refers to the date of booking. For resale flats, it refers to the date of application received by HDB.
^ For private properties with remaining lease of at least 60 years. |
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Private properties with remaining leases of less than 60 years but at least 30 years
The withdrawal limit will be calculated based on the ratio of the remaining lease when the member is 55 years old, to the lease at the point of purchase. You can use this table to find out the applicable withdrawal limit.
Examples:
(a) 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 withdrawal limit = 30/50 x 100% = 60% of Valuation Limit.
(b) A 30 year old member buys a private property with 59 years 11 months of lease remaining. When the member turns 55 years old, the property will have 34 years 11 months of lease remaining.
Hence, the withdrawal limit = 34/59 x 100% = 58% of Valuation Limit. |
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| Important points to note |
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The CPF Withdrawal Limit is a maximum limit per property.
Using your CPF to make a lumpsum/capital repayment on your housing loan will make you reach the maximum limit earlier, but it will reduce the interest charges.
The applicable maximum limit will not change even if the housing loan is refinanced (eg. a private property bought in Jan 2003 is subject to 150% of VL. If the loan is refinanced in 2006, the maximum limit remains at 150% of VL).
The Board informs affected members six months before they reach their applicable maximum limit (members are informed about their limit when they apply to use CPF to buy property). | |
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| Click here to calculate your maximum housing limit |