If you plan to use CPF savings to buy an older home, compare its remaining lease with the age of the youngest buyer. CPF Board says that where the lease is at least 20 years but does not cover the youngest buyer to age 95, CPF usage can be pro-rated. The remaining lease and the youngest owner’s age determine that lease-based limit.
Start with the actual remaining lease and the proposed buyers’ ages. Use CPF Board’s housing usage calculator for the amount that applies to your purchase. Check loan, cash and grant arrangements separately before relying on a budget. Read CPF Board’s guidance for a lease that falls short of age 95.
- Confirm the remaining lease for the exact property.
- Identify the youngest person who would buy the home.
- Use the age-plus-lease check to see whether proration may apply.
- Run the CPF calculator and use the result in your financing worksheet.
Jump to a section
Work out whether the lease reaches age 95
Suppose the younger of two proposed buyers is 32 and the flat has 58 years remaining. Adding 32 and 58 gives 90. The lease would reach about age 90 for the younger buyer, so the household should check the pro-rated limit. A second property with 63 years remaining would reach age 95 for that same buyer. This quick comparison identifies the lease coverage. Use the calculator for the amount rather than estimating a percentage from the age gap.
| Example | Lease coverage check |
|---|---|
| Youngest buyer is 32 and 58 years remain | The lease falls short of age 95 |
| Youngest buyer is 32 and 63 years remain | The lease reaches age 95 on these simplified figures |
| The lease has fewer than 20 years remaining | It falls below the minimum for the pro-rated CPF usage described by CPF Board |
| The household changes who will buy the property | Recheck using the proposed ownership and financing details |
Back to contents · Next section
Carry the result into the purchase budget
Put the purchase price, housing loan, available CPF and required cash into separate rows. If the result leaves less CPF available for the purchase than your worksheet assumed, work out which payments would need more cash and when those payments would be due. An attractive asking price can still lead to a tighter cash schedule.
For an HDB resale flat, check the HFE and Request for Value process as applicable. If the value differs from your offer, revisit the cash figures using the HDB resale cash gap worksheet.
Back to contents · Next section
Frequently asked questions
Does reaching age 95 tell me exactly how much CPF I can use?
It answers the lease coverage question. Use CPF Board’s calculator and confirm the other conditions for your purchase.
Should I average the buyers’ ages?
Use the youngest buyer’s age for this check. If your proposed buyer list changes, use the updated details.