Housing Loan from Banks
Get an In-Principal Approval (IPA) for your Bank Loan once you have the intention to buy!
Fill in our Financial Calculation Sheet and we will calculate your Total Debt Servicing Ratio (TDSR), Maximum Loan amount, Total amount required for purchase and your Monthly Instalment amount in CPF & Cash, as well as check if you are subjected to Additional Buyer's Stamp Duty (ABSD). Hence, you will have a good idea on purchase budget and perimeters!
In the meantime please call our DirectHome List of Bankers to confirm the loan amount you can get based on your current income and to get your In-Principle Approval (IPA) from the bank.
Quote "DirectHome" to the banker to receive a $80 voucher when your loan is granted!
With this IPA from the bank, you can be rest assured that your bank loan will be granted when you eventually proceed for your property purchase.
CPF Usage for Private Property Purchase
Private Properties Scheme
The Private Properties Scheme enables CPF members to use their CPF Ordinary Account savings to buy or build private residential properties in Singapore for their own occupation or investment.
What is Private Properties Scheme (PPS)?
Under PPS, you can use your CPF Ordinary Account (OA) savings to buy or build private residential property for occupation or investment.
It can be used to:
- pay the purchase price of the private property;
- repay the housing loan in part or whole and/or to service the monthly housing loan instalments taken to buy the private property;
- repay the construction loan in part or whole and/or to service the monthly construction loan instalments taken to buy land and/or to construct a house on that land; and
- pay the stamp duty, legal costs, survey fees and other related cost incurred in the private property purchase, refinancing and/or construction of the house.
Am I eligible to use my CPF savings under PPS?
All CPF members who are eligible to buy a private property are eligible to use their CPF savings under PPS.
You are not eligible if:
- you are buying a private property with a remaining lease of less than 30 years;
- you are buying a private property with a remaining lease of less than 60 but at least 30 years and your age plus the remaining lease of the private property is less than 80 years;
- you are a single person buying a private property with a non-related single and you have used CPF for an existing property; or
- you are a married person buying a private property with a non-related single.
You can check if you are eligible to buy a private property on the URA website.
Read the Terms and Conditions to use your CPF to buy a private property.
How much CPF savings can I use?
To ensure you have enough CPF savings for your retirement years, there are housing limits on the amount of CPF savings you can use to buy a private property.
Valuation Limit (VL) is the purchase price or the value of the private property at the time of purchase, whichever is lower.
Withdrawal Limit (WL) is 120% of the VL. This is the maximum amount of CPF you can use for the private property.
To continue using your CPF beyond VL, up to WL, you need to meet the following requirements:
- Below 55 years old: To set aside the current Basic Retirement Sum (BRS) in your Special Account (SA), including the amount withdrawn for investment, and Ordinary Account (OA).
- 55 years old and above: To meet the BRS in your Retirement Account (RA), SA (including the amount withdrawn for investment) and OA.
The amount of CPF you can use is lower if you are buying a private property with a remaining lease of less than 60 years but at least 30 years.
Try the Property with Less Than 60 Years Lease Calculator to find out the amount you can use for such properties.
What are the conditions for using CPF to buy private properties with remaining lease of less than 60 years but at least 30 years?
The conditions are as follows:
First, to use CPF to buy private properties with remaining lease of less than 60 years but at least 30 years, an owner’s age plus the remaining lease of the private property must be at least 80 years. This is to ensure that the private property will last the owner until he/she is at least 80 years old, which is roughly the average life span of Singaporeans at birth.
Second, the maximum amount of CPF that all eligible owners may use for the private property is a percentage of the lower of the purchase price or the value of the private property at the time of purchase. This is computed as follow:
| (The remaining lease of flat when the youngest eligible owner using CPF is 55 years old) x (The lease of the flat at the point of purchase) |
Lower of purchase price or value of the flat |
You can also click here to use the table to help you with the calculation.
The maximum amount of CPF that can be used for the property is set at a level that covers the estimated depreciated value of the private property when the youngest eligible member using CPF for the private property reaches the CPF withdrawal age of 55 years. This is to ensure prudent use of members’ CPF savings towards the purchase of private properties with short remaining lease.
An example of how the maximum amount is determined is shown below.
Example
A 35 year old member buys a private property with 50 years of lease remaining. When the member turns 55 years old, the property will have 30 years of lease remaining.
The maximum amount of CPF that he can use is 30/50 = 0.6 (or 60%) of the lower of the purchase price or value of the private property.
