Changes in the Central Provident Fund (CPF) loan rules on the purchase of older Housing Board resale flats will be announced soon for implementation in May this year, National Development Minister Lawrence Wong said yesterday. At issue is the restriction on using CPF to buy...
Changes in the Central Provident Fund loan rules on the purchase of older Housing Board resale flats will be announced soon for implementation in May this year, National Development Minister Lawrence Wong said yesterday.
At issue is the restriction on using CPF to buy flats with less than 60 years of lease remaining. About 90,000 of the total stock of about one million HDB flats are more than 40 years old. "Some banks take reference from these CPF restrictions when assessing how much loan to extend. As a result, both the CPF and loan quantums may be reduced for the purchase of such flats,"said Mr Wong.While the CPF rule is intended to safeguard the retirement adequacy of those who buy older flats, its design has led to some unintended consequences, he noted.
"For example, if a buyer would like to buy a 39-year-old flat, he can use full CPF; but one year later, because you hit this less-than-60-years requirement, the amount of CPF will be restricted. And there is no good reason why this should be so just because the flat became one year older," he said in Parliament.
"In fact, the focus should not be on the remaining lease of the flat. What we want to ensure is that buyers purchase flats with leases that are long enough to last them for life. If that is done, we can relax CPF usage rules, even if the remaining lease is less than 60 years."
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Government to relax CPF rules for purchase of older resale HDB flatsSpeaking at the 2019 Committee of Supply Debate in Parliament, Mr Wong acknowledged that the revised CPF rules for purchase of older resale HDB flats may have disadvantaged owners of such flats.
Read more »
CPF loan rules for older HDB resale flats to be relaxedCPF loan rules for older HDB resale flats to be relaxed | Singapore Business Review
Read more »
Govt says there’s no need to revise CPF payout mechanism as they send yearly reminder lettersDr Ho Ting Fei had earlier said that the payout mechanism should be revised in a more compassionate manner given the life expectancy and needs of the members.
Read more »
HDB to relax rules on CPF use for purchase of older flats; will take effect in MaySINGAPORE's National Development Minister Lawrence Wong said in Parliament on Thursday morning that his ministry is working out details on relaxing Central Provident Fund (CPF) loan rules on the purchase of older Housing Board resale flats, and will announce them soon for implementation in May this year. Read more at The Business Times.
Read more »
HDB looking into relaxing CPF usage rules for older flats, details to be announced soon for implementation in MaySINGAPORE- National Development Minister Lawrence Wong said Thursday morning (March 7) that his ministry is working out details on relaxing Central Provident Fund (CPF) loan rules on the purchase of older Housing Board resale flats, and will announce them soon for implementation in May this year.. Read more at straitstimes.com.
Read more »
S’pore govt actually had to remind S’poreans to feed their foreign domestic helpersWith the recent incidents of foreign domestic helper abuse surfacing in the country, the Singapore government, via the Ministry of Manpower (MOM), had to release an “Employer’s Guide” on December 2018 which includes a reminder to provide FDWs with...
Read more »
26 vulnerabilities detected from 2nd Singapore Govt bug bounty programmeThe top local hacker is Samuel Eng, who found four of the validated vulnerabilities and got a bounty of US$1,750 as a result.
Read more »
Govt to make it easier for businesses to apply for licencesTO CREATE a pro-business environment, the government wants to streamline regulations to reduce costs, cut paper work and free up resources, said Senior Parliamentary Secretary for Trade and Industry Tan Wu Meng on Monday. Read more at The Business Times.
Read more »