CPF Usage for Lesser balance Lease Tenure. Make Sure the Youngest Buyer can Stay up to 95 Years old in the property.

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Things to Take Note when buying lesser balance lease tenure Properties.

Buying a private property from 10 May 2019 whereby if the remaining lease of the property does not allow the youngest to stay until age 95, the amount of CPF that can be used will be pro-rated.

Some home buyers may overlook and only realized after the purchase of the property.

 

CPF withdrawal Flowchart

Case Study.

Jason, Age 45 buys a private property with   a balance lease of 80 Years

At a purchase price of $2,200,000 and Value price of $2,000,000.

For this case,

Valuation Limit (VL) of Property = $2,000,000

Withdrawal Limit (WL) of the property = $2,400,000

For this case, Jason at Age 45, 80 years balance you can use 100%.

If Jason buys a private property with balance 45 Years of Remaining lease, his CPF usable will be 83%.

The below Table for Pro-Rated CPF usable based on Remaining Lease applies to Private Residential and HDB.

CPF pro rate usage

Also note that CPF cannot be used if the remaining lease is less than 20 years.


You can also use CPF housing Usage Calculator on CPF Website to Calculate the amount of CPF that can be used.

 

cpf web

 

Feel free to contact buycondo.sg and we will provide you with Professional Advice.

 

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