Things to Take Note when buying lesser balance lease tenure Properties.
Buying a private property from 10 May 2019 whereby if the remaining lease of the property does not allow the youngest to stay until age 95, the amount of CPF that can be used will be pro-rated.
Some home buyers may overlook and only realized after the purchase of the property.
Case Study.
Jason, Age 45 buys a private property with a balance lease of 80 Years
At a purchase price of $2,200,000 and Value price of $2,000,000.
For this case,
Valuation Limit (VL) of Property = $2,000,000
Withdrawal Limit (WL) of the property = $2,400,000
For this case, Jason at Age 45, 80 years balance you can use 100%.
If Jason buys a private property with balance 45 Years of Remaining lease, his CPF usable will be 83%.
The below Table for Pro-Rated CPF usable based on Remaining Lease applies to Private Residential and HDB.
Also note that CPF cannot be used if the remaining lease is less than 20 years.
You can also use CPF housing Usage Calculator on CPF Website to Calculate the amount of CPF that can be used.
Feel free to contact buycondo.sg and we will provide you with Professional Advice.
