### Crucial Rule: Short-Lease 2-Room Flexi vs. 99-Year Lease
Even though you are 65, working, and have sufficient income to pay monthly installments, **how you can pay depends entirely on whether you choose a short lease or a 99-year lease**:
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### 1. If You Choose a Short Lease (15 to 30+ Years)
* **No Housing Loans Allowed:** Under HDB statutory regulations, **no HDB concessionary loan or bank housing loan is permitted** for short-lease 2-Room Flexi flats.
* **Full Payment Required:** The purchase must be settled **100% upfront in lump-sum cash and/or CPF Ordinary Account (OA) savings** at the point of collection of keys/completion.
* **Lease Length Requirement:** Because you are 65, the lease must cover you until at least **age 95**, meaning your minimum allowable lease is **30 years**.
* **Affordability:** A 30-year short-lease 2-room flat is heavily subsidised, generally costing between **S$75,000 and S$115,000** (depending on Type 1/Type 2 and project location). However, you cannot service it via monthly mortgage installments from your current salary.
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### 2. If You Choose a 99-Year Standard Lease
* **HDB Housing Loan Permitted:** If you apply as a single citizen (under the Single Singapore Citizen Scheme) for a **standard 99-year lease** 2-room BTO flat, you **can apply for an HDB housing loan** and service it through monthly installments using your working income/CPF.
* **Loan Tenure Cap at Age 65:** Because HDB loans cap the borrowing tenure at age 65 (or up to 25 years maximum), getting an HDB loan at age 65 means your **loan tenure will be very short** (typically limited to a few years) or the loan quantum offered will be minimal.
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### Practical Options
1. **Use CPF OA / Past Property Proceeds for Short Lease:** If you have accumulated sufficient CPF OA savings or cash proceeds from a previous home, buying a 30-year short lease outright eliminates all monthly mortgage burdens for the rest of your life.
2. **Consider a Resale 2-Room / 3-Room with Cash/CPF:** If upfront funds are tight, check your available CPF OA balances and housing grant entitlements (such as the Enhanced CPF Housing Grant) under an HFE assessment.
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Gan Eng Joo Onassis 颜荣裕, REALTOR®
MSc BIT (Middlesex, England, United Kingdom); BBA (South Australia)
CEA Reg No: R021244C | Singapore Line:
(+65) 88899918
Email: onassis@sgagent.com
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