Always wanted the charm of an older HDB flat but hate the restrictive CPF rules associated with them? Currently, buyers who want to purchase an old resale flat with less than 60 years left to its lease face a number of rules, which are:
1) a buyer can use his CPF to finance the flat if the buyer’s age combined with the remaining lease adds up to 80 and above
2) if a property’s lease is <30 years, it is not fully payable via CPF
But those days will soon be long gone, according to an announcement made by National Development Minister Lawrence Wong on March 7. The government is currently looking into relaxing the CPF usage rules of older flats as the current rules in place often unintentionally work against homeowners who want to sell off their old flats as it limits the eligible group of buyers. He also hopes that the change will safeguard home buyers into paying using their CPF funds instead of dipping into their retirement savings.
The official details of the new rules will be announced in May.
Rule change predictions from Ohmyhome agent
Ohmyhome’s experienced agent is optimistic about the changes to come, as it signals a potential win-win situation for homeowners of older flats and buyers keen on mature HDB estates. CPF changes could also have practical upsides as it can help stabilise HDB flat prices and increase demand for older flats. He also foresees homeowners of older flats holding back their sales plan until the official details are released as they might want to make an informed decision before putting their home on the market.
While waiting for May’s official announcement, why not browse thousands of authentic listings on Ohmyhome? With just a glance, you’ll be up-to-date on the latest past transaction data of any unit. Go check it out!
Sources: TodayOnline, Straits Times