For giving more flexibility to flat buyers in Singapore, they have been given the option to keep up to SGD20,000 each in their Central Provident Fund (CPF) when taking a loan from the Housing and Development Board (HDB).
Previously, buyers had to fully utilise the balances in their CPF Ordinary Account (OA) to pay for their flat purchase before they took up an HDB housing loan.
“From today, flat buyers taking an HDB housing loan will have the option of retaining up to SGD20,000 each in their CPF OA,” said HDB in a press release issued today.
“The remaining CPF OA balance will be used to pay for their flat purchase. This option will be available to flat buyers who have yet to collect the keys to their new flats, as well as resale applications received from today,” added HDB.
HDB also observed that the option to retain some balance in their CPF OA will provide flat buyers with greater flexibility in using their CPF funds.
The funds can be used for their monthly mortgage instalments in times of need and will improve retirement adequacy if left unutilised.
“Flat buyers who wish to use all their CPF OA balances for their flat purchase may continue to do so,” said HDB.
Meanwhile, HDB also launched about 5,101 flats for sale under the August 2018 Build-to-Order (BTO) and Re-Offer of Balance Flats (ROF).
About 4,375 BTO units have been launched in Punggol and Yishun and another 726 ROF units across various towns and estates.