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I am 41yo and looking to buy a HDB flat that is 40yo and older. How will this affect my HDB loan or will the down payment be higher than buying a younger flat e.g. 30yo and younger. Also, can CPF be fully wipe out with the above age and scenario? thank you.
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Hi, the loan will be affected if the house you purchase can't last you till the age of 95, which means any house with more than 54 years of lease left will not be affected. CPF can be used fully if the lease of the HDB can cover you till you are 95 years old.

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You may wish to consult a mortgage professional to find out the exact impact for such a purchase for your home loan.

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1. **Impact on Loan**:
The loan eligibility depends on whether the lease of the property lasts until you turn 95. Properties with less than 54 years of lease remaining may not qualify.

2. **CPF Usage**:
CPF funds can only be fully used if the property's lease covers you until you are 95 years old.

3. **Eligibility Criteria**:
If the lease is sufficient, you can use CPF without issues for your purchase.

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Good day to you,

One can only utilize full CPF OA fund and loan when the purchased unit can suppose them till the age of 95. This means you will still need 51 years of lease, at minimum.
Looking for a unit that is 40 years old means that you still have a balance of a 59-year lease.

Let's get together to materialize your intention.

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Tan Pei Cheng (Pei)
I would be glad to assist you.
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Hi,

1) The downpayment will definitely be affected. You have to prepare to pay at least another 26% more than the current requirement of 25%.
2) You have to check with the bank or HDB how much it affects when you decided to go ahead if you already got your HFE.
3) In general, the loan should be pro-rated according to the percentage of missing lease to match the 95 criteria.
4) Your CPF utilization will be affected as well. There is a calculator in CPF website to calculate how much CPF you can used for the purchase.
5) Whether the CPF can be fully wiped now will depends on how much the CPF allowed to use.

All The Best!!!

Hope the above answers your main concerns, but if there are more queries, please feel free to contact me at 90110636  , or email: ling.ck7@gmail.com if more information is needed.
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