You can use a pro-rated amount of your CPF savings if the property has a remaining lease of at least 20 years, even if it doesn't cover the youngest buyer until age 95.
The pro-rated amount depends on:
- The age of the youngest owner
- The remaining lease of the property (at least 20 years)
For instance, if two 25-year-old buyers purchase a flat with 65 years of remaining lease for $550,000, they can use up to $495,000 (90% of the purchase price) of their CPF. This is because the lease will only last until they are 80 years old.
- The owners' ages
- The property's remaining lease
This policy reflects Singapore's increasing life expectancy and encourages buyers to:
- Purchase properties with sufficient lease coverage
- Set aside adequate CPF savings for retirement housing needs (e.g. a replacement property)
Important note: If the youngest co-owner gives up their ownership, the CPF usage limit will be recalculated based on the next youngest co-owner's age.
