Flat buyers can now choose to keep up to S$20,000 each in their Central Provident Fund (CPF) when taking a loan from the Housing and Development Board (HDB), the housing board said on Tuesday (Aug 28).
Previously, buyers would have to fully utilise the balances in their CPF Ordinary Account (OA) to pay for their flat before taking up an HDB loan.
The move will provide flat buyers with “greater flexibility in using their CPF funds”, said HDB in the press release.
It added that the funds can be used for buyers’ monthly mortgage instalments in times of need and for retirement purposes.
“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,” HDB said.
Those who wish to use all their CPF OA balances for their flat purchase can continue to do so.
Source: Channel NewsAsia – 28 Aug 2018