Asked by Anonymous
Why do some hdb home owners reach CPF usage limit after a few years?
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7 Answers
Short answer is they made a bad property decision or they currently hold a property that they should think about selling.
Our government has policies in place that don't allow such owners to put any more of their CPF retirement savings into a HDB that is depreciating in value, in case these owners end up homeless and without any leftover CPF/ savings to survive in the future.
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.
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
Our government has policies in place that don't allow such owners to put any more of their CPF retirement savings into a HDB that is depreciating in value, in case these owners end up homeless and without any leftover CPF/ savings to survive in the future.
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.
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
Good day to you.
Financial prudence is vital before purchasing any residential unit. The ability of the balance lease to cover the youngest co-owner till the age of 95 affects the amount of CPF OA that the owners can use on the unit.
Navigating a property transaction can be complex, especially with major life events. As a seasoned property consultant with 15 years of experience, I provide informed guidance on complex property matters.
I assist my clients with -
Divorce: Providing guidance for property settlements and achieving a clear outcome.
Estate Planning: Simplifying the process of planning for the future or handling inherited property.
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Financial prudence is vital before purchasing any residential unit. The ability of the balance lease to cover the youngest co-owner till the age of 95 affects the amount of CPF OA that the owners can use on the unit.
Navigating a property transaction can be complex, especially with major life events. As a seasoned property consultant with 15 years of experience, I provide informed guidance on complex property matters.
I assist my clients with -
Divorce: Providing guidance for property settlements and achieving a clear outcome.
Estate Planning: Simplifying the process of planning for the future or handling inherited property.
Complex Situations: Offering support for cases involving Power of Attorney, bankruptcy, and other challenges.
For informed guidance along your property journey, you can schedule a free consultation to discuss your specific needs.
For more property insights, follow my short videos here: https://www.youtube.com/@SGHomeCompass Read More
Hi
They probably use substantial CPF OA to pay most if not the full price of the property. It isn't really an issue if there is financial planning done up in advance so that they have sufficient monies during retirement and need not rely on selling the property to unlock funds for retirement. The only problem comes when they need to sell or do not have enough cpf funds for retirement purposes. The property sale is likely to be negative sale since the sale price cannot cover the full cpf refund plus accrued interest.
Hope the above clarifies. I am well-versed with HDB and private property transactions, having helped more than 100 homeowners transit smoothly with their housing plans. Please reach out to me at 97432395 for a more in-depth discussion :)
May I have more info on your requirements so as to make better recommendations? Thanks and looking forward to chat more
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They probably use substantial CPF OA to pay most if not the full price of the property. It isn't really an issue if there is financial planning done up in advance so that they have sufficient monies during retirement and need not rely on selling the property to unlock funds for retirement. The only problem comes when they need to sell or do not have enough cpf funds for retirement purposes. The property sale is likely to be negative sale since the sale price cannot cover the full cpf refund plus accrued interest.
Hope the above clarifies. I am well-versed with HDB and private property transactions, having helped more than 100 homeowners transit smoothly with their housing plans. Please reach out to me at 97432395 for a more in-depth discussion :)
May I have more info on your requirements so as to make better recommendations? Thanks and looking forward to chat more
Warm Regards,
Ivan Ng Realtor
ERA Senior Marketing Director
ERA Multiple Diamond Award Achiever
SEAA Salesperson Achievement Award (Gold)
SEAA Singapore Accredited Mortgage Planner (SAMP)
ERA Top 11th Achiever in Feb 2024 (Top 1% Company Level)
ERA Top 64th Achiever in March 2024 (Top 1% Company Level)
ERA Top 37th Achiever in Oct 2023 (Top 1% Company Level)
ERA Top 93th Achiever for Full-Year 2020 (Top 1.5% Company Level)
ERA Top 11th Achiever in June 2020 (Top 1% Company Level)
SMU BBM (Finance), Magna Cum Laude
Proactive. Sincerity. Feedback.
Contact: (+65) 97432395
Whatsapp: wa.me/6597432395
Email: Ivanng10@gmail.com
IG: instagram.com/ivanngrealtor
WeChat: ivanng10
FB: fb.com/IvanNgRealtor
Web: https://propertyportal.era.com.sg/agent/detail/R052114D
(Client's Testimonials)
CEA: R052114D
**Note: We are not prompted when you respond here, hence please get in touch directly. Look forward to hear from you soon! ** Read More
There are several factors to this, and most likely, these owners will have used little to no cash for their HDB, thus hitting the usage limit.
It could also be a case where balance lease of the HDB does not allow the youngest owner to age 95. Read More
It could also be a case where balance lease of the HDB does not allow the youngest owner to age 95. Read More
1
It usually happens when the property’s remaining lease is short or when the valuation limit (VL) or withdrawal limit (WL) for CPF has been hit.
• Valuation Limit (VL): This is the lower of the purchase price or market value at the time of purchase. Once this amount is fully used, homeowners can only use CPF beyond this if they set aside the Basic Retirement Sum (BRS) in their CPF Ordinary + Special Accounts.
• Short lease balance: If the flat has fewer than 60–65 years left on its lease, CPF usage is pro-rated, which means buyers hit their usage cap sooner.
• Accrued interest: CPF funds used for housing also accumulate interest that has to be refunded when the property is sold, so owners may feel the squeeze earlier than expected. Read More
• Valuation Limit (VL): This is the lower of the purchase price or market value at the time of purchase. Once this amount is fully used, homeowners can only use CPF beyond this if they set aside the Basic Retirement Sum (BRS) in their CPF Ordinary + Special Accounts.
• Short lease balance: If the flat has fewer than 60–65 years left on its lease, CPF usage is pro-rated, which means buyers hit their usage cap sooner.
• Accrued interest: CPF funds used for housing also accumulate interest that has to be refunded when the property is sold, so owners may feel the squeeze earlier than expected. Read More
1. Many buyers rely heavily on CPF OA, sometimes covering almost the entire property price.
2. This approach works if retirement planning is already in place, so they don’t need to cash out the home later.
3. The real concern arises when CPF savings for retirement fall short or when a sale becomes necessary.
4. In such cases, the property could end up a negative sale if the selling price cannot cover CPF refunds plus accrued interest.
“Planning is bringing the future into the present so that you can do something about it now.” – Alan Lakein
WhatsApp me at: ABLE Toh (65) 9856-9255 or through this link.:https://wa.me/6598569255
----------------------------888--------------------------------888--------------------------->>>
(1) "If you need more assistance with property matters:
like renting / selling, buying / or investing, I'm here to help!
WhatsApp me at: ABLE Toh (65) 9856*9255 or through this link.:https://wa.me/6598569255
(Unfortunately, this platform doesn't allow direct contact, but you can easily reach me )
(2) (***) ✅✅ You can READ my REVIEWS here:
✅✅ https://www.propertyguru.com.sg/agent/able-s-k-toh-61591.
(3) ✅✅ For PRIVATE Home Buyers, I offer solutions for sourcing resale and new PRIVATE homes at ✅✅ ZERO charge (Because Most PRIVATE seller Agent are willing to share commission with Buyer Agent)
*** You can reach me at my Singapore mobile: (65) 9856 9255
***(4) ✅ ✅ ✅ DEVELOPER SALES TEAM!!! BEST PRICES !!! ✅ ✅ NO AGENT FEES !! ✅ ✅ LOWEST PRICE GUARANTEED!!!
*** Connect Singapore Line: (65) 9856*9255
FOR : UPDATED INFO / E- BROCHURE / FLOOR PLAN / PRICE LIST!!!
NEW Launches Condominium in 2025 , call , whatsapp me FOR BEST CHEAPEST, LOWEST PRICE:
NORTH Region //
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N2.Artisan 8 – Sin Ming Road, D20 | RCR | ~4 min to Upper Thomson MRT (TEL)
N3.Canberra Crescent Residences – Canberra Crescent, D27 | OCR | ~6 min to Canberra MRT (NSL)
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S4.Robertson Opus – Unity Street, D9 | CCR | ~7 min to Fort Canning MRT (DTL)
S5.River Green – River Valley Road, D9 | CCR | ~5 min to Great World MRT (TEL)
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E1.Arina East Residences – Tanjong Rhu Road, D15 | RCR | ~3 min to Katong Park MRT (TEL)
E2,Amber House – Amber Gardens, D15 | RCR | ~10 min to Tanjong Katong / Marine Parade MRT (TEL)
E3.Mori @ Guillemard – Guillemard Road, D14 | RCR | ~8 min to Mountbatten MRT (CCL)
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W1.LyndenWoods – Science Park Drive, D5 | RCR | ~5 min to Kent Ridge MRT (CCL)
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W3.Faber Walk GLS – Faber Walk, D5 | RCR | ~10 min to Clementi MRT (EWL)
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O4.The SEN – De Souza Avenue, D21 | OCR | ~8 min to Hillview MRT (DTL)
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O6.Margaret Drive GLS – Margaret Drive, D3 | RCR | ~5 min to Queenstown MRT (EWL)
QUOTE OF THE DAY " In negotiations, the most important thing is not to win or lose, but to find a solution that is mutually beneficial." Read More
2. This approach works if retirement planning is already in place, so they don’t need to cash out the home later.
3. The real concern arises when CPF savings for retirement fall short or when a sale becomes necessary.
4. In such cases, the property could end up a negative sale if the selling price cannot cover CPF refunds plus accrued interest.
“Planning is bringing the future into the present so that you can do something about it now.” – Alan Lakein
WhatsApp me at: ABLE Toh (65) 9856-9255 or through this link.:https://wa.me/6598569255
----------------------------888--------------------------------888--------------------------->>>
(1) "If you need more assistance with property matters:
like renting / selling, buying / or investing, I'm here to help!
WhatsApp me at: ABLE Toh (65) 9856*9255 or through this link.:https://wa.me/6598569255
(Unfortunately, this platform doesn't allow direct contact, but you can easily reach me )
(2) (***) ✅✅ You can READ my REVIEWS here:
✅✅ https://www.propertyguru.com.sg/agent/able-s-k-toh-61591.
(3) ✅✅ For PRIVATE Home Buyers, I offer solutions for sourcing resale and new PRIVATE homes at ✅✅ ZERO charge (Because Most PRIVATE seller Agent are willing to share commission with Buyer Agent)
*** You can reach me at my Singapore mobile: (65) 9856 9255
***(4) ✅ ✅ ✅ DEVELOPER SALES TEAM!!! BEST PRICES !!! ✅ ✅ NO AGENT FEES !! ✅ ✅ LOWEST PRICE GUARANTEED!!!
*** Connect Singapore Line: (65) 9856*9255
FOR : UPDATED INFO / E- BROCHURE / FLOOR PLAN / PRICE LIST!!!
NEW Launches Condominium in 2025 , call , whatsapp me FOR BEST CHEAPEST, LOWEST PRICE:
NORTH Region //
N1.Springleaf Residence – Upper Thomson Road, D26 | OCR | ~3 min to Springleaf MRT (TEL)
N2.Artisan 8 – Sin Ming Road, D20 | RCR | ~4 min to Upper Thomson MRT (TEL)
N3.Canberra Crescent Residences – Canberra Crescent, D27 | OCR | ~6 min to Canberra MRT (NSL)
SOUTH Region //
S1.UpperHouse @ Orchard – Orchard Boulevard, D10 | CCR | Direct link to Orchard Boulevard MRT (TEL)
S2.Zion Residences – Zion Road, D9 | CCR | ~4 min to Great World MRT (TEL)
S3.Promenade Peak – Zion Road, D9 | CCR | ~5 min to Havelock MRT (TEL)
S4.Robertson Opus – Unity Street, D9 | CCR | ~7 min to Fort Canning MRT (DTL)
S5.River Green – River Valley Road, D9 | CCR | ~5 min to Great World MRT (TEL)
EAST Region //
E1.Arina East Residences – Tanjong Rhu Road, D15 | RCR | ~3 min to Katong Park MRT (TEL)
E2,Amber House – Amber Gardens, D15 | RCR | ~10 min to Tanjong Katong / Marine Parade MRT (TEL)
E3.Mori @ Guillemard – Guillemard Road, D14 | RCR | ~8 min to Mountbatten MRT (CCL)
WEST Region //
W1.LyndenWoods – Science Park Drive, D5 | RCR | ~5 min to Kent Ridge MRT (CCL)
W2,Bloomsbury Residences – Media Circle, D5 | RCR | ~8 min to one-north MRT (CCL)
W3.Faber Walk GLS – Faber Walk, D5 | RCR | ~10 min to Clementi MRT (EWL)
W4.Elta Condo (Clementi Ave 1) – Clementi Avenue 1, D5 | RCR | ~10 min to Clementi MRT (EWL)
OTHERS / OCR Launches //
O1.One Marina Gardens – Marina Gardens Lane, D1 | CCR | ~2 min to Marina South MRT (TEL)
O2.W Residences Marina View – Marina View, D1 | CCR | ~2 min to Shenton Way MRT (TEL)
O3.Otto Place EC – Plantation Close, D24 | OCR | ~6 min to Tengah Park MRT (JRL)
O4.The SEN – De Souza Avenue, D21 | OCR | ~8 min to Hillview MRT (DTL)
O5.Skye at Holland – Holland Drive, D10 | CCR | ~6 min to Holland Village MRT (CCL)
O6.Margaret Drive GLS – Margaret Drive, D3 | RCR | ~5 min to Queenstown MRT (EWL)
QUOTE OF THE DAY " In negotiations, the most important thing is not to win or lose, but to find a solution that is mutually beneficial." Read More
Hi,
1) HDB home owners reached CPF usage limit only when they bought a resale flat.
2) There is no CPF usage limit when buying BTO/SBF.
3) The maximum usage of funds in CPF taking HDB loan is 100% LTV & 120% when taking a bank loan.
4) 2 possible situations that home owner reached CPF usage limit:
(a) Remaining loan + youngest age < 95. This will greatly reduce the CPF funds allowed to be use in the mortgage payment.
(b) Fully utilizing CPF funds in paying the flat and minimum cash. It is advisable to pay the monthly mortgage using mixture of cash and CPF funds appropriately to ensure that this mortgage payment method can last till completion of the mortgage payment even at a later stage of life.
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.
I'll be glad to assist.
Best regards
Ling CK
90110636
ling.ck7@gmail.com
https://www.linkedin.com/in/ckling/
https://agents.huttonsgroup.com/R056727F/
Note:
Any response to our answer does not reach us until we scroll through every query posted daily.
The best way to get a follow-up is to contact us directly via WhatsApp or email. Read More
1) HDB home owners reached CPF usage limit only when they bought a resale flat.
2) There is no CPF usage limit when buying BTO/SBF.
3) The maximum usage of funds in CPF taking HDB loan is 100% LTV & 120% when taking a bank loan.
4) 2 possible situations that home owner reached CPF usage limit:
(a) Remaining loan + youngest age < 95. This will greatly reduce the CPF funds allowed to be use in the mortgage payment.
(b) Fully utilizing CPF funds in paying the flat and minimum cash. It is advisable to pay the monthly mortgage using mixture of cash and CPF funds appropriately to ensure that this mortgage payment method can last till completion of the mortgage payment even at a later stage of life.
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.
I'll be glad to assist.
Best regards
Ling CK
90110636
ling.ck7@gmail.com
https://www.linkedin.com/in/ckling/
https://agents.huttonsgroup.com/R056727F/
Note:
Any response to our answer does not reach us until we scroll through every query posted daily.
The best way to get a follow-up is to contact us directly via WhatsApp or email. Read More
1