HDB flat buyers will now have more flexibility in using their Central Provident Fund (CPF) money.
Previously, flat buyers had to fully utilise the balances in their CPF Ordinary Account (OA) to pay for their flat purchase, before they take up a HDB housing loan.
From Tuesday (28 Aug), flat buyers taking up HDB housing loan will have the option of retaining up to $20,000 each in their CPF OA. The remaining CPF OA balance will be used to pay for their flat purchase.
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 28 Aug.
The option to retain some balance in their CPF OA will provide flat buyers with greater flexibility in using their CPF funds. The funds can be used for their monthly mortgage instalments in times of need and will improve retirement adequacy if left unutilised. Flat buyers who wish to use all their CPF OA balances for their flat purchase may continue to do so.Source: “HDB Launches 5,101 Flats In August 2018 BTO and ROF Exercise” (Press Release by HDB, 28 Aug 2018)