• Home  / 
  • HDB
  •  /  What do I need to know about Resale Flat?

What do I need to know about Resale Flat?

20 June 2017
resale flat

This article is for those who are seriously considering to purchase a resale flat. So be it if you are a first-timer applicants or second-time applicants, below are some of the points that you should take note.

Before we continue, you will need to know that all HDB has a lease period of 99-years. In another words, you can own the property for a maximum of 99 years (provided you can live for that long) only. After 99 years, the value of the property will drop to zero (yes, SGD$0.00) and the land itself will goes back to the government. Till date, it has never occurred before because Singapore is only ½ a century old.

Grants for First-timer applicants

You will be entitled to the following grants, provided you fufill the criterias set for each specific grant.

  • PHG (Proximity Housing Grant): $20,000
  • Family Grant: $50,000 (4-rooms and below), $40,000 (5-rooms and above)

Can I use my CPF?

We know that purchasing a flat cost a bomb and you will definitely need to utilize your CPF. Unlike BTO flats, there are a few more criteria you need to fulfil in order to use your CPF for your resale flat.

  1. The remaining lease must not be less than 30 years. (The chances are pretty high, considering that Singapore is only 50 plus years old)
  2. The remaining lease of the property plus your current age must be at least 80 years.

If you fulfill the above 2 criteria, congratulations! You are eligible to use your CPF for your resale flat. But now, the main question is, how much can you use?

IF your property is…

  1. More than 60 years of lease.
    Yes, you may pay the full sum using purely your CPF.
  2. More than 30 years but less than 60 years of lease.
    Yes, you may use your CPF money but not in full. The rest has to be paid by cash.
  3. Less than 30 years of lease.
    No, you cannot use any of your CPF money at all. The house must be paid in cash.

Point A and C is quite straight forward but what about point B? You might ask, “So exactly how much CPF can I use for my resale flat?” The formula that HDB and CPF use to calculate is pretty complex that is not necessary for you to know.

You may use the calculator (link below) to find out how much CPF you can use for your resale flat. https://www.cpf.gov.sg/eSvc/Web/Schemes/PropertyWithLessThanSixtyYearsLease/Input

For those who wish to know how exactly they (HDB & CPF) calculate the amount, the formula can be found here. https://www.cpf.gov.sg/Assets/members/Documents/Housingwithdrawallimit.pdf