Flat buyers using CPF can retain up to $20,000 in OA when applying for HDB loans

SINGAPORE - Flat buyers now have more flexibility in using their Central Provident Fund (CPF) money, the Housing Board said as it launched 5,101 flats for sale from Tuesday (Aug 28).

Buyers can now keep up to $20,000 in their CPF Ordinary Accounts (OA) when they take a Housing Board loan. Before, they had to use all the funds in their OA first.

Said the HDB: "The funds can be used for their monthly mortgage instalments in times of need and will improve retirement adequacy if left unutilised."

The flats offered for sale are 4,375 Build-to-Order flats in Yishun and a new waterfront district in Punggol, and 726 Re-Offer of Balance Flats (ROF) units - flats that remain unsold after several exercises.

Prices excluding grants for the new flats range from $75,000 for a two-room flexi flat in Yishun to more than $411,000 for a three-generation flat in Punggol.

The Punggol flats, in two housing projects called Punggol Point Cove and Punggol Point Woods, are in a new waterfront district that the HDB launched on Sunday. The two projects are bounded by New Punggol Road and Punggol Way.

There are two Build-to-Order projects in Yishun offered for sale. Melody Spring @ Yishun is bounded by Yishun Avenue 8 and Yishun Street 42 and Yishun Glen is bounded by Yishun Ring Road, Yishun Street 31 and Yishun Avenue 6.

The balance flats comprise 67 two-room flexi units, 171 three-room units, 294 four-room units, 152 five-room units, 33 three-generation flats, and nine executive flats in various towns.

About 58 per cent of these are already completed, said the HDB.

Applications close next Monday (Sept 3).

The next BTO launch will be in November, where the HDB will offer about 3,800 flats in Sembawang, Sengkang, Tampines, Tengah and Yishun.

Apart from the flats in Tampines and Tengah, the projects will have a shorter waiting of time of 2.5 years instead of the typical three to four years. They are the first batch of projects with shorter waiting times first announced in 2017.

This article was first published in The Straits Times. Permission required for reproduction.