Those who intend to use all of their CPF Ordinary Account balance may also do so.
Flat buyers may choose to retain up to $20,000 in their Central Provident Fund (CPF) Ordinary Account (OA) in taking Housing and Development Board (HDB) loans, an announcement revealed.
With the new scheme, 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,” HDB explained.
Previously, flat buyers needed to fully use the balances in their CPF OA in paying for they flat purchase before they can take an HDB housing loan.
HDB believes that the option to retain some balance in their CPF OA will allow flat buyers with greater flexibility in using their CPF funds. However, those who intend to use all their CPF OA balances for their flat purchase may continue to do so.
“The funds can be used for their monthly mortgage instalments in times of need and will improve retirement adequacy if left unutilised,” HDB noted.
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