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Good day to you.

With the pro-rated valuation cap, there are several ways to mitigate the effects:
1) Contact HDB and ask for an extension of the loan tenure if you are not already utilizing the maximum duration.
2) Lease any spare rooms to alleviate the financial strain.
3) Request financial support from HDB.
If these options are unsuccessful, you may want to think about downsizing your current residence.

Regardless of the path you choose, ensure that you continue making your monthly mortgage payments.

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If this situation happens, a viable alternative is actually to sell the flat.

There is a reason why government restricts CPF usage on older properties. We protect our population against putting too much of their CPF retirement savings into a home that may not be worth much in the future, and reduce the risk of homelessness in old age.

Unless the home owner is wealthy enough or very confident that he/ she can afford another home at 95 years old if the lease runs to 0.... then keeping the flat could work.

I'm a Harvard graduated real estate agent with a degree in economics, and I have a decade of experience working on Singapore public policy. I would love to schedule a free consultation to discuss your options if you need any support.

Feel free to reach out via whatsapp or email.

Regards
Kay Cloud
The Harvard Educated Agent
Propnex Realty Pte Ltd
cloud@propnex.com
Tel: (+6.5.) 8.5.6.7.4.5.8.5
Whatsapp -> https://wa.me/6585674585 Read More

Assuming that CPF cap has been maxed out for the current place and financing it with cash is strenuous in your monthly expenses, you can perhaps look into selling the current place, and look into purchasing another place with higher lease balance. Alternatively, refinancing with a bank loan and extending the loan tenure, if eligible, may reduce the monthly cash commitments in the loan repayment.

——

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Hi,

1) As far as I'm aware, home loan can only be paid using cash or CPF from OA, or both.
2) When the CPF usage limit is reached. The CPF will not disburse any fund from the OA.
3) Thus, the only sole payment method would be in cash.

All The Best!!!

Hope the above answer to your main concerns, but if there are more query, please feel free to contact me at 90110636  , or email: ling.ck7@gmail.com if more information is needed.
I'll be glad to assist.

Best regards
Ling CK
 90110636 
ling.ck7@gmail.com
https://R056727F.propnex.net/
https://www.facebook.com/Homesellerbuyer

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When you hit the CPF usage limit for an HDB loan and the flat’s remaining lease does not last until the youngest buyer turns 95, CPF will no longer be allowed for your monthly instalments. From that point onwards, HDB will require alternative arrangements.

Here are the realistic options available:
1. Pay monthly instalments fully in cash
This is the default outcome once CPF usage stops. Monthly instalments continue at the same amount, just without CPF support.
2. Part-cash + CPF (if partial CPF is still allowed)
In some cases, CPF usage may not drop to zero immediately. You might still be allowed limited CPF usage with the balance topped up by cash. HDB will inform you clearly if this applies.
3. Refinance to a bank loan (subject to eligibility)
This is sometimes overlooked. If you still meet bank loan criteria (age, income, remaining lease), refinancing may allow:

• Lower monthly instalment
• Longer loan tenure
This can ease cashflow even though CPF usage remains restricted.

4. Use cash proceeds from partial sale / rightsizing later
Some owners plan ahead by building a cash buffer or downsizing before cash strain becomes heavy.

What won’t work:
• Extending HDB loan tenure beyond policy limits
• Continuing CPF usage once the limit is fully reached

This is one of those situations where timing matters a lot. A small adjustment early on (refinance, restructuring, planning cash buffer) can make a big difference later.

If you want, you can share your age, remaining loan amount, monthly instalment and flat lease, and I can help you map out the most practical next step before cashflow becomes tight.

Aren Goh, PropNex
 9657 6701  Read More