What Is CPF?
CPF is also known as the Central Provident Fund on which Singaporeans are required to set up for retirement purposes. Every Singaporean across the globe have recognized its importance to get by in today’s way of life.
CPF can also be utilized in purchasing properties like condo units and other related stuff. If you are a first time condo buyer, you can make use of the CPF’s ceiling value for your Ordinary Account or OA funds. First time property buyer can use the entire OA fund.
If you are buying a second property, make sure that you fulfil the minimum sum of $77,500 in your combined OA and Special Account (SA) which is 50% of the required minimum sum of $155,000 in the CPF. (as of 08/05/2014)
You are not eligible to use CPF to buy a private property if:
- you are buying a private property with a remaining lease of less than 30 years;
- you are buying a private property with a remaining lease of less than 60 but at least 30 years and your age plus the remaining lease of the private property is less than 80 years;
You can read more about the things to consider before buying a home.