3 Changes with the New CPF and HDB Loan Rules You Need to Know

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Are you updated on the new, old-flat friendly CPF rules? On 9 May 2019, rule changes on buying homes using CPF and HDB housing loans were announced that will allow greater flexibility for buyers of older flats and prevent them from out-living their leases. The new rules will take effect from 10 May 2019. To get you up to speed, here’s a quick rundown.

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How the criteria for CPF and HDB housing loans have changed:

  1. The total amount of CPF that can be used is no longer dependent on the balance lease of the property but on whether the remainder of the lease can last until the youngest buyer turns 95. This is a stark contrast to the old rules where you can only use the maximum amount of CPF allowed if the property has a minimum of 60 years left to its balance lease. However, if the balance lease is less than 60 years, the Buyer is only allowed to use CPF if the Buyer’s age and balance lease add up to at least 80 years.

    Under the new rules, if the criteria are met, the buyer is able to obtain maximum CPF usage of 90% Loan-to-Value (LTV) limit. Owning or buying a home that meets the criteria will also allow the buyer (from age 55) to be eligible to withdraw CPF savings above the Basic Retirement Sum.

  2. If the property’s balance lease could not cover the buyer until the age of 95, he/she is still able to obtain an HDB loan but on a pro-rated basis. They will also be allowed to withdraw CPF upon reaching the age of 55.

  3. These rule changes are applicable to the following:

    • HDB flat applications received on or after 10 May 2019
    • CPF withdrawal applications received on or after 10 May 2019
    • Private Option to Purchase or Sales and Purchase Agreement signed on or after 10 May 2019

Will we see a higher demand for old flats following these new rule changes? According to a recent study, there’s an upsurge in old flat sales, albeit due to a number of factors. If you’re more motivated than ever to sell your home, post a listing for free on our platform or call 6886 9009 to learn more about our fixed-rate agent services.

Sources: MOM, ChannelNewsAsia


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While the Information is considered to be true and correct at the date of publication, changes in circumstances after the time of publication may impact on the accuracy of the Information. The Information may change without notice and Ohmyhome is not in any way liable for the accuracy of any information printed and stored or in any way interpreted and used by a user.

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