CPF
What Public Home Scheme covers?
The scheme applies only to government-built Housing Board flats, either new or resold by existing owners.
How Public Home Scheme works?
When buying a new flat, all the savings in the CPF Ordinary Account may be used to pay the 20% deposit as well as the balance of the buying price. For a resale flat, CPF savings may be used to pay either the purchase price or its market value as determined by a valuer appointed by the Housing Board, whichever is lower.
If a housing loan is taken out, future monthly contributions may be used to pay the instalments. The savings can also pay for stamp duty and legal fees incurred in the purchase.
Who is eligible for Public Home Scheme?
Anyone who buys a new or resale Housing Board flat may use this scheme. Family co-owners may pool their CPF savings to buy the flat.
How much can be used?
For a new flat, the entire cost of buying the flat may be paid with CPF savings.
For a resale flat, CPF savings may be used to pay up to the purchase price or market value of the flat, whichever is lower. The housing loan taken up to meet the purchase price can also be paid using future contributions. If the housing loan is still outstanding when the total CPF used reaches the lower of the purchase price or market value of the flat, CPF savings – up to 80% of the gross CPF savings in the member’s Ordinary and Special Accounts in excess of the Minimum Sum – may still be used to service the housing loan.
Can I use the savings in my Special Account to pay my monthly housing instalments?
You may do so if you meet the following requirements:
. The balance in your Ordinary Account has been deleted, and
. The property was bought before 1 January 1999.
The following dates are used to determine the date of purchase:
For private properties, HUDC flats and non-residential properties
Upon signing the Option to Purchase, or the Sale & Purchase Agreement, whichever is applicable.
For HDB properties
Flat bought direct from HDB : Date of signing the Agreement For Lease (ie date 20% downpayment is made)
Flat bought from open market : Date of signing the Sale & Purchase Agreement
Flat obtained through transfer : Date of Registration of Transfer Application (after all requisite documents have been submitted to HDB)
How much can I use from the Special Account?
The amount that can be used every month is the shortfall in your monthly instalment payment arising from the cut in the CPF contributions to your Ordinary Account, subject to a maximum of $360 (ie 6% of $6,000) per contribution per month.
Example:
A member’s wages is $6,000 a month. The last contribution received from his employer is $2,400 for the month of November 1998. The amount released from the member’s CPF account for the monthly housing loan instalment is as follows:
Contributions in Ordinary Account (before CPF cut) = $1,800
Monthly CPF repayment to financier (before CPF cut) = $1,600
Contributions in Ordinary Account (after CPF cut) = $1,440
_______
Monthly shortfall in CPF housing instalment = $160
_______
In this case, the member’s shortfall in the CPF housing instalment (i.e. $160) is less than the maximum of $360 allowed to be withdrawn from the member’s Special Account. The $360 is derived from 6% of $6,000 (6% is the contribution rate cut for the Ordinary Account).
Assuming his Ordinary Account balance has been depleted, the CPF Board will therefore release $160 from the member’s Special Account towards his housing loan instalment every month.
How do I apply to use the Special Account?
Please refer to the table below for the procedures.
Types of property: Private and Commercial Properties HDB flats HUDC Properties
Ownership status
Co-owner of property and currently using CPF
No need to apply. Deduction of Special Account is automatic.
No need to apply. Deduction of Special Account is automatic.
No need to apply. Deduction of Special Account is automatic.
Co-owner of property and
1)Stopped using CPF; or
2) has applied to use CPF but has yet to commence usage
Complete and submit RPS Form 4B through your financier so as to re-commence or commence the CPF monthly instalment deductions.
Approach the HDB branch office managing your flat personally to complete the CPF application form, HPS/9.
Property bought under Residential Properties Scheme (RPS)
Complete and submit RPS Form 4B through your financier.
Property bought under Public Housing Scheme (PHS)
Complete and submit the CPF application Form, HPS/11, through your financier.
Co-owner of property and never applied to use CPF
Complete and submit Form RPS/1A for private properties, and NRPS/1A for commercial properties.
Approach the HDB branch office managing your flat personally to complete the CPF application form, HPS/9.
If there are no other co-owners who have ever used CPF towards the property; or if there is another co-owner currently using CPF under RPS, complete and submit Form RPS/1A.
Where another co-owner is currently using CPF under the HDB-HUDC Housing Scheme, complete and submit Form HPS/11.
Not a co-owner
Not eligible to use Special Account.
Co-owner must have bought the property before 1 January 1999.
Not eligible to use Special Account.
Co-owner must have bought the property before 1 January 1999.
Not eligible to use Special Account.
Co-owner must have bought the property before 1 January 1999.
Owners of private (including HUDC flats) and commercial properties who are applying to use their CPF for the first time would have to engage a lawyer as legal documentation is required. After the legal documentation has been completed, the CPF Board will release your Ordinary Account savings for the monthly instalment payments and the legal costs incurred. The Special Account can only be used after the balance in the Ordinary Account has been exhausted. It cannot be used to pay the legal fees.
The available balance in my Ordinary Account has been fully earmarked for payment of legal and stamp fees on my private property. Can I use my Special Account savings for the housing instalment?
Yes, if your property was bought before 1 January 1999. Monies that are earmarked in your CPF Account will be reserved. The Special Account can be used if the balance in the Ordinary Account has been depleted after setting aside the monies earmarked. The amount that can be used every month is the shortfall in your monthly instalment payment arising from the cut in the CPF contributions to your Ordinary Account, subject to a maximum of $360 (ie 6% of $6,000) per contribution per month.
Can I use my Special Account savings to pay the cost of upgrading my HDB flat under HDB’s Main Upgrading Programme?
Yes, if your property was bought before 1 January 1999, and the balance in your Ordinary Account has been exhausted.
I am currently topping-up my monthly instalment payment with cash. Can I use my Special Account savings to pay the cash top-up?
The use of the Special Account is to help members meet the shortfall in their housing instalment payments arising from the CPF cut. Therefore, it cannot be used for the cash top-up.
Can I use the Special Account for capital repayment of my housing loan? What about progress payments for my private property which is still under construction?
The use of the Special Account is to help members meet the shortfall in their housing instalment payments arising from the CPF cut. As such, it cannot be used for capital repayment or progress payments.
My husband and I are using CPF to pay the housing instalments. Must both Ordinary Account balances be exhausted before we can use our Special Account savings?
No. The use of a member’s Special Account is not dependent on the CPF balance of the co-owner. The member may use his Special Account savings if the balance in his Ordinary Account is depleted.
I have been retrenched/I am a housewife who had worked before/self-employed. Can I use my Special Account savings to pay my monthly housing instalments?
The use of the Special Account is to help members meet their housing loan shortfall arising from the cut in the CPF contributions to the Ordinary Account. However, as a concession to members who are not affected by the CPF cut, the use of the Special Account is extended to them after their Ordinary Account savings have been depleted.
a) CPF members with employer’s contributions
The amount that can be used every month is the shortfall in the monthly instalment payment arising from the cut in the CPF contributions to the Ordinary Account, subject to the maximum of $360 (ie. 6% of $6,000) per contribution per month.
b) CPF members who do not have employer’s contributions recently
The limit is $100 per month (about 6% of $1,600, the median monthly income of workers).
Is the use of the Special Account restricted to one property?
No, as long as you meet the conditions for the use of the Special Account.
However, the total amount that can be used from the Special Account cannot exceed the shortfall in your monthly instalment payments arising from the cut in the CPF contributions to your Ordinary Account.
Can I use the Special Account for HDB commercial properties?
Yes, if the property was bought before 1 January 1999.
Can I use the Special Account to buy a new private property or a new HDB flat? Can it be used for the 20% downpayment as well?
No. The use of the Special Account is to help members meet their housing loan repayment shortfall arising from the cut in the CPF contributions to the Ordinary Account.
When can I start using my Special Account?
From 1 January 1999, CPF contributions will be cut. As employers have up to the 14th of the following month to pay their contributions, you may start using your Special Account from 1 February 1999, after your Ordinary Account savings have been depleted.
Do I need to refund the amount withdrawn from my Special Account?
If you sell your property, you are required to refund the CPF savings withdrawn, plus the accrued interest, to your Special Account. The interest computed will be based on the Ordinary Account savings interest rate.
With the CPF cut, I will not have enough CPF to pay the monthly housing instalment. What can I do?
You may approach your financier (bank, finance company, etc) or HDB for help in your housing loan repayment.
If you need further assistance, you may apply for a Government Bridging Loan through the CPF Board.
What is the Government Bridging Loan and how does it work?
The Government Bridging Loan is a short-term loan offered by the Government at a concessionary interest rate to help Singaporeans and permanent residents affected by the CPF cut. It is meant to help CPF members meet the shortfall in their monthly mortgage repayments arising from the CPF cut.
Example:
Cut in CPF contributions in Ordinary Account at the time of application for the Government Bridging Loan = $360, based on wages of $6,000 per month.
Monthly CPF repayment to financier = $1,800 (before CPF cut)
Contributions in Ordinary Account = $1,440 (after CPF cut)
_______
Monthly shortfall $360
_______
The Government will provide the $360 (or shortfall in housing loan instalment, whichever is lesser) to help the CPF member bridge the shortfall in his monthly mortgage instalment.
Who are eligible for the Government Bridging Loan?
The loan is applicable to Singapore citizens and permanent residents who are using their CPF savings to service the mortgage loans for the following properties bought before 1 January 1999:
- private residential properties;
- HUDC flats;
- non-residential properties; and
- HDB flats where the HDB loan is at the market interest rate.
To qualify, the member must:
- be below the age of 62 years at the time of application,
- not be a bankrupt, and
- be affected by the 10% cut in the employer’s CPF contributions.
Can I use my CPF savings for investment under the CPF Investment Scheme (CPFIS) and then apply for the Government Bridging Loan subsequently?
If you withdraw your CPF for investments after the date of the CPF cut, you will still be eligible for the bridging loan subsequently. However, you will not be allowed to invest or reinvest under the CPF Investment Scheme and Special Discounted Shares Scheme, from the date your application is received to the end of the draw-down period.
I have been retrenched. Can I apply for the Government Bridging Loan to help service the monthly instalment payment?
The Government Bridging Loan is only available to members who are affected by the CPF cut, and not intended to help retrenched members service their housing loans.
If your application for the Government Bridging Loan had earlier been approved, the draw-down will be discontinued until your new employer contributes CPF for you.
I am a self-employed. Do I qualify for the Government Bridging Loan?
The Government Bridging Loan is only available to members who are affected by the CPF cut. As self-employed persons are not affected by the CPF cut, they will not qualify.
When is a property considered “bought before 1 January 1999″?
The following dates are used to determine the date of purchase:
For private properties, HUDC flats and non-residential properties
Upon signing the Option to Purchase, or the Sale & Purchase Agreement, whichever is applicable.
For HDB properties
Flat bought direct from HDB : Date of signing the Agreement For Lease (ie date 20% downpayment is made)
Flat bought from open market : Date of signing the Sale & Purchase Agreement
Flat obtained through transfer : Date of Registration of Transfer Application (after all requisite documents have been submitted to HDB)
How would I know whether I have a shortfall in my CPF savings to pay for the monthly mortgage instalments?
You can find out if you have a shortfall by checking your latest CPF Statement of Account. From the Statement of Account, you can estimate how long the balances in your CPF Account can service your monthly instalments.
Example:
a) No. of months before Ordinary Account balance is exhausted:
Balance in Ordinary Account
Monthly shortfall
b) No. of months before Special Account balance is exhausted:
Balance in Special Account
Special Account limit or monthly shortfall, whichever is lower
No. of months the CPF balances can service the monthly shortfall is a+b.
Where to obtain the CPF Statement of Account
You may check your latest CPF balances through the CPF PAL-Phone or CPF PAL-Internet. The Statement is also available at any CPF office.
Where can I go for assistance if there is a shortfall in my CPF savings to meet the monthly instalment payments because of the CPF cut?
The CPF Board will inform members who may be eligible for the Government Bridging Loan three months in advance. As soon as you have been informed by the Board that you may have a shortfall, you should approach your financier (ie bank or finance company) for assistance to restructure the monthly instalment payment.
If you still have difficulty meeting the shortfall after rescheduling your loan, you may apply for the Government Bridging Loan through the CPF Board.
How do I apply for the Government Bridging Loan?
To apply, just complete the application form for the Government Bridging Loan, and submit it together with your latest pay slip, to the CPF Board. You will be informed of the status of your application 2 weeks later.
Do I need to engage a lawyer? What legal documents must a member sign to obtain the Government Bridging Loan?
No, you do not need to engage a lawyer. Once all the terms and conditions have been met, the CPF Board will send you a Letter of Approval, and a Bridging Loan Agreement for you to sign. This Agreement is an agreement between yourself and the Government who is providing the bridging loan.
Please return the signed Agreement to the CPF Board. The Bridging Loan will only be available after the Board has received the signed copy of the Agreement.For how long will the bridging loan be available?
It will be available for 3 years with effect from 1 March 1999, or when the member reaches 62 years, whichever is earlier.
What is the interest charged on the Government Bridging Loan?
The interest charged will be the same as the HDB concessionary interest rate, which in turn is computed at the prevailing CPF interest rate + 0.1%. Interest is calculated at monthly rest.
Besides interest, what other fees are likely to be incurred in taking up a bridging loan?
There are no other costs.
When does repayment of the Government Bridging Loan start?
Repayment will commence on 1 March 2003 or when the member turns 63 years, whichever is earlier. The maximum repayment period is 10 years. The repayment can be in cash and/or paid through the CPF contributions in the member’s Ordinary Account. Payment in cash must be through GIRO.
The loan must be fully repaid when the member:
a) Reaches 65 years,
b) Sells his share in the property, or
c) Applies for withdrawal of his CPF savings on the following grounds:
. He is leaving Singapore and West Malaysia permanently,
. He is a Malaysian who is leaving Singapore for West Malaysia permanently,
. He is permanently incapacitated,
. He is of unsound mind, or
. He is a bankrupt who is applying to withdraw his CPF on grounds of reaching 55, 58, etc, or on grounds of being permanently incapacitated from future employment.
What is the amount of monthly repayment?
The minimum monthly repayment amount is $100 per month. This is fixed for the whole repayment period, except for the last repayment amount, which will be the balance of the outstanding loan.
Will there be any penalty for late or non-payment of the loan?
In the event of any default in repayment, additional penalty charges at the rate of 0.2% per month in the amount in arrears, subject to a minimum of $2.00, will be levied each month.
What Public Home Scheme covers?
The scheme applies only to government-built Housing Board flats, either new or resold by existing owners.
How Public Home Scheme works?
When buying a new flat, all the savings in the CPF Ordinary Account may be used to pay the 20% deposit as well as the balance of the buying price. For a resale flat, CPF savings may be used to pay either the purchase price or its market value as determined by a valuer appointed by the Housing Board, whichever is lower.
If a housing loan is taken out, future monthly contributions may be used to pay the instalments. The savings can also pay for stamp duty and legal fees incurred in the purchase.
Who is eligible for Public Home Scheme?
Anyone who buys a new or resale Housing Board flat may use this scheme. Family co-owners may pool their CPF savings to buy the flat.
How much can be used?
For a new flat, the entire cost of buying the flat may be paid with CPF savings.
For a resale flat, CPF savings may be used to pay up to the purchase price or market value of the flat, whichever is lower. The housing loan taken up to meet the purchase price can also be paid using future contributions. If the housing loan is still outstanding when the total CPF used reaches the lower of the purchase price or market value of the flat, CPF savings – up to 80% of the gross CPF savings in the member’s Ordinary and Special Accounts in excess of the Minimum Sum – may still be used to service the housing loan.
Can I use the savings in my Special Account to pay my monthly housing instalments?
You may do so if you meet the following requirements:
. The balance in your Ordinary Account has been deleted, and
. The property was bought before 1 January 1999.
The following dates are used to determine the date of purchase:
For private properties, HUDC flats and non-residential properties
Upon signing the Option to Purchase, or the Sale & Purchase Agreement, whichever is applicable.
For HDB properties
Flat bought direct from HDB : Date of signing the Agreement For Lease (ie date 20% downpayment is made)
Flat bought from open market : Date of signing the Sale & Purchase Agreement
Flat obtained through transfer : Date of Registration of Transfer Application (after all requisite documents have been submitted to HDB)
How much can I use from the Special Account?
The amount that can be used every month is the shortfall in your monthly instalment payment arising from the cut in the CPF contributions to your Ordinary Account, subject to a maximum of $360 (ie 6% of $6,000) per contribution per month.
Example:
A member’s wages is $6,000 a month. The last contribution received from his employer is $2,400 for the month of November 1998. The amount released from the member’s CPF account for the monthly housing loan instalment is as follows:
Contributions in Ordinary Account (before CPF cut) = $1,800
Monthly CPF repayment to financier (before CPF cut) = $1,600
Contributions in Ordinary Account (after CPF cut) = $1,440
_______
Monthly shortfall in CPF housing instalment = $160
_______
In this case, the member’s shortfall in the CPF housing instalment (i.e. $160) is less than the maximum of $360 allowed to be withdrawn from the member’s Special Account. The $360 is derived from 6% of $6,000 (6% is the contribution rate cut for the Ordinary Account).
Assuming his Ordinary Account balance has been depleted, the CPF Board will therefore release $160 from the member’s Special Account towards his housing loan instalment every month.
How do I apply to use the Special Account?
Please refer to the table below for the procedures.
Types of property: Private and Commercial Properties HDB flats HUDC Properties
Ownership status
Co-owner of property and currently using CPF
No need to apply. Deduction of Special Account is automatic.
No need to apply. Deduction of Special Account is automatic.
No need to apply. Deduction of Special Account is automatic.
Co-owner of property and
1)Stopped using CPF; or
2) has applied to use CPF but has yet to commence usage
Complete and submit RPS Form 4B through your financier so as to re-commence or commence the CPF monthly instalment deductions.
Approach the HDB branch office managing your flat personally to complete the CPF application form, HPS/9.
Property bought under Residential Properties Scheme (RPS)
Complete and submit RPS Form 4B through your financier.
Property bought under Public Housing Scheme (PHS)
Complete and submit the CPF application Form, HPS/11, through your financier.
Co-owner of property and never applied to use CPF
Complete and submit Form RPS/1A for private properties, and NRPS/1A for commercial properties.
Approach the HDB branch office managing your flat personally to complete the CPF application form, HPS/9.
If there are no other co-owners who have ever used CPF towards the property; or if there is another co-owner currently using CPF under RPS, complete and submit Form RPS/1A.
Where another co-owner is currently using CPF under the HDB-HUDC Housing Scheme, complete and submit Form HPS/11.
Not a co-owner
Not eligible to use Special Account.
Co-owner must have bought the property before 1 January 1999.
Not eligible to use Special Account.
Co-owner must have bought the property before 1 January 1999.
Not eligible to use Special Account.
Co-owner must have bought the property before 1 January 1999.
Owners of private (including HUDC flats) and commercial properties who are applying to use their CPF for the first time would have to engage a lawyer as legal documentation is required. After the legal documentation has been completed, the CPF Board will release your Ordinary Account savings for the monthly instalment payments and the legal costs incurred. The Special Account can only be used after the balance in the Ordinary Account has been exhausted. It cannot be used to pay the legal fees.
The available balance in my Ordinary Account has been fully earmarked for payment of legal and stamp fees on my private property. Can I use my Special Account savings for the housing instalment?
Yes, if your property was bought before 1 January 1999. Monies that are earmarked in your CPF Account will be reserved. The Special Account can be used if the balance in the Ordinary Account has been depleted after setting aside the monies earmarked. The amount that can be used every month is the shortfall in your monthly instalment payment arising from the cut in the CPF contributions to your Ordinary Account, subject to a maximum of $360 (ie 6% of $6,000) per contribution per month.
Can I use my Special Account savings to pay the cost of upgrading my HDB flat under HDB’s Main Upgrading Programme?
Yes, if your property was bought before 1 January 1999, and the balance in your Ordinary Account has been exhausted.
I am currently topping-up my monthly instalment payment with cash. Can I use my Special Account savings to pay the cash top-up?
The use of the Special Account is to help members meet the shortfall in their housing instalment payments arising from the CPF cut. Therefore, it cannot be used for the cash top-up.
Can I use the Special Account for capital repayment of my housing loan? What about progress payments for my private property which is still under construction?
The use of the Special Account is to help members meet the shortfall in their housing instalment payments arising from the CPF cut. As such, it cannot be used for capital repayment or progress payments.
My husband and I are using CPF to pay the housing instalments. Must both Ordinary Account balances be exhausted before we can use our Special Account savings?
No. The use of a member’s Special Account is not dependent on the CPF balance of the co-owner. The member may use his Special Account savings if the balance in his Ordinary Account is depleted.
I have been retrenched/I am a housewife who had worked before/self-employed. Can I use my Special Account savings to pay my monthly housing instalments?
The use of the Special Account is to help members meet their housing loan shortfall arising from the cut in the CPF contributions to the Ordinary Account. However, as a concession to members who are not affected by the CPF cut, the use of the Special Account is extended to them after their Ordinary Account savings have been depleted.
a) CPF members with employer’s contributions
The amount that can be used every month is the shortfall in the monthly instalment payment arising from the cut in the CPF contributions to the Ordinary Account, subject to the maximum of $360 (ie. 6% of $6,000) per contribution per month.
b) CPF members who do not have employer’s contributions recently
The limit is $100 per month (about 6% of $1,600, the median monthly income of workers).
Is the use of the Special Account restricted to one property?
No, as long as you meet the conditions for the use of the Special Account.
However, the total amount that can be used from the Special Account cannot exceed the shortfall in your monthly instalment payments arising from the cut in the CPF contributions to your Ordinary Account.
Can I use the Special Account for HDB commercial properties?
Yes, if the property was bought before 1 January 1999.
Can I use the Special Account to buy a new private property or a new HDB flat? Can it be used for the 20% downpayment as well?
No. The use of the Special Account is to help members meet their housing loan repayment shortfall arising from the cut in the CPF contributions to the Ordinary Account.
When can I start using my Special Account?
From 1 January 1999, CPF contributions will be cut. As employers have up to the 14th of the following month to pay their contributions, you may start using your Special Account from 1 February 1999, after your Ordinary Account savings have been depleted.
Do I need to refund the amount withdrawn from my Special Account?
If you sell your property, you are required to refund the CPF savings withdrawn, plus the accrued interest, to your Special Account. The interest computed will be based on the Ordinary Account savings interest rate.
With the CPF cut, I will not have enough CPF to pay the monthly housing instalment. What can I do?
You may approach your financier (bank, finance company, etc) or HDB for help in your housing loan repayment.
If you need further assistance, you may apply for a Government Bridging Loan through the CPF Board.
What is the Government Bridging Loan and how does it work?
The Government Bridging Loan is a short-term loan offered by the Government at a concessionary interest rate to help Singaporeans and permanent residents affected by the CPF cut. It is meant to help CPF members meet the shortfall in their monthly mortgage repayments arising from the CPF cut.
Example:
Cut in CPF contributions in Ordinary Account at the time of application for the Government Bridging Loan = $360, based on wages of $6,000 per month.
Monthly CPF repayment to financier = $1,800 (before CPF cut)
Contributions in Ordinary Account = $1,440 (after CPF cut)
_______
Monthly shortfall $360
_______
The Government will provide the $360 (or shortfall in housing loan instalment, whichever is lesser) to help the CPF member bridge the shortfall in his monthly mortgage instalment.
Who are eligible for the Government Bridging Loan?
The loan is applicable to Singapore citizens and permanent residents who are using their CPF savings to service the mortgage loans for the following properties bought before 1 January 1999:
- private residential properties;
- HUDC flats;
- non-residential properties; and
- HDB flats where the HDB loan is at the market interest rate.
To qualify, the member must:
- be below the age of 62 years at the time of application,
- not be a bankrupt, and
- be affected by the 10% cut in the employer’s CPF contributions.
Can I use my CPF savings for investment under the CPF Investment Scheme (CPFIS) and then apply for the Government Bridging Loan subsequently?
If you withdraw your CPF for investments after the date of the CPF cut, you will still be eligible for the bridging loan subsequently. However, you will not be allowed to invest or reinvest under the CPF Investment Scheme and Special Discounted Shares Scheme, from the date your application is received to the end of the draw-down period.
I have been retrenched. Can I apply for the Government Bridging Loan to help service the monthly instalment payment?
The Government Bridging Loan is only available to members who are affected by the CPF cut, and not intended to help retrenched members service their housing loans.
If your application for the Government Bridging Loan had earlier been approved, the draw-down will be discontinued until your new employer contributes CPF for you.
I am a self-employed. Do I qualify for the Government Bridging Loan?
The Government Bridging Loan is only available to members who are affected by the CPF cut. As self-employed persons are not affected by the CPF cut, they will not qualify.
When is a property considered “bought before 1 January 1999″?
The following dates are used to determine the date of purchase:
For private properties, HUDC flats and non-residential properties
Upon signing the Option to Purchase, or the Sale & Purchase Agreement, whichever is applicable.
For HDB properties
Flat bought direct from HDB : Date of signing the Agreement For Lease (ie date 20% downpayment is made)
Flat bought from open market : Date of signing the Sale & Purchase Agreement
Flat obtained through transfer : Date of Registration of Transfer Application (after all requisite documents have been submitted to HDB)
How would I know whether I have a shortfall in my CPF savings to pay for the monthly mortgage instalments?
You can find out if you have a shortfall by checking your latest CPF Statement of Account. From the Statement of Account, you can estimate how long the balances in your CPF Account can service your monthly instalments.
Example:
a) No. of months before Ordinary Account balance is exhausted:
Balance in Ordinary Account
Monthly shortfall
b) No. of months before Special Account balance is exhausted:
Balance in Special Account
Special Account limit or monthly shortfall, whichever is lower
No. of months the CPF balances can service the monthly shortfall is a+b.
Where to obtain the CPF Statement of Account
You may check your latest CPF balances through the CPF PAL-Phone or CPF PAL-Internet. The Statement is also available at any CPF office.
Where can I go for assistance if there is a shortfall in my CPF savings to meet the monthly instalment payments because of the CPF cut?
The CPF Board will inform members who may be eligible for the Government Bridging Loan three months in advance. As soon as you have been informed by the Board that you may have a shortfall, you should approach your financier (ie bank or finance company) for assistance to restructure the monthly instalment payment.
If you still have difficulty meeting the shortfall after rescheduling your loan, you may apply for the Government Bridging Loan through the CPF Board.
How do I apply for the Government Bridging Loan?
To apply, just complete the application form for the Government Bridging Loan, and submit it together with your latest pay slip, to the CPF Board. You will be informed of the status of your application 2 weeks later.
Do I need to engage a lawyer? What legal documents must a member sign to obtain the Government Bridging Loan?
No, you do not need to engage a lawyer. Once all the terms and conditions have been met, the CPF Board will send you a Letter of Approval, and a Bridging Loan Agreement for you to sign. This Agreement is an agreement between yourself and the Government who is providing the bridging loan.
Please return the signed Agreement to the CPF Board. The Bridging Loan will only be available after the Board has received the signed copy of the Agreement.For how long will the bridging loan be available?
It will be available for 3 years with effect from 1 March 1999, or when the member reaches 62 years, whichever is earlier.
What is the interest charged on the Government Bridging Loan?
The interest charged will be the same as the HDB concessionary interest rate, which in turn is computed at the prevailing CPF interest rate + 0.1%. Interest is calculated at monthly rest.
Besides interest, what other fees are likely to be incurred in taking up a bridging loan?
There are no other costs.
When does repayment of the Government Bridging Loan start?
Repayment will commence on 1 March 2003 or when the member turns 63 years, whichever is earlier. The maximum repayment period is 10 years. The repayment can be in cash and/or paid through the CPF contributions in the member’s Ordinary Account. Payment in cash must be through GIRO.
The loan must be fully repaid when the member:
a) Reaches 65 years,
b) Sells his share in the property, or
c) Applies for withdrawal of his CPF savings on the following grounds:
. He is leaving Singapore and West Malaysia permanently,
. He is a Malaysian who is leaving Singapore for West Malaysia permanently,
. He is permanently incapacitated,
. He is of unsound mind, or
. He is a bankrupt who is applying to withdraw his CPF on grounds of reaching 55, 58, etc, or on grounds of being permanently incapacitated from future employment.
What is the amount of monthly repayment?
The minimum monthly repayment amount is $100 per month. This is fixed for the whole repayment period, except for the last repayment amount, which will be the balance of the outstanding loan.
Will there be any penalty for late or non-payment of the loan?
In the event of any default in repayment, additional penalty charges at the rate of 0.2% per month in the amount in arrears, subject to a minimum of $2.00, will be levied each month.
