CPF valuation limit not an issue for majority of home buyers

Channel NewsAsia, 14 May 2012 

The CPF Valuation Limit is not a constraint for the vast majority of members who are servicing housing loans using their CPF savings.

Minister of State for Manpower Tan Chuan-Jin said this in response to MP for Pasir Ris-Punggol GRC Gan Thiam Poh's question on whether the CPF Board will review the CPF withdrawal limit for housing.

The valuation limit restricts the amount of CPF savings members may use or property purchases to the lower of property price or property value at the time of purchase.

This is to ensure Singaporeans' retirement needs are not compromised when CPF savings are used to finance housing needs.

Mr Tan said the number of members who can no longer use CPF savings to pay for monthly instalments after reaching the valuation limit is actually very small.

"But the small minority of members who may find it difficult to continue servicing their housing loans after they reach the valuation limit, CPF Board does assess the situation and has allowed them some flexibility on a case-by-case basis," Mr Tan said.

"For example, where giving such flexibility helps them tide over a period of temporary hardship or where the member is in the midst of right-sizing his property to avoid defaults."

"CPF Board will continue to exercise such flexibility and discretion where the case merits," Mr Tan added.