CPF Minimum Sum Adjustment from 1st July 2013

Buying a residential property, or even a second one soon? Take note that CPF minimum sum will be revised upwards to $148,000 for period between 1st July 2013 and 30th June 2014. This is a yearly revision which CPF adjusts for inflation. The Minimum Sum was set at $80,000 in 2003 and will be raised gradually until it reaches $120,000 (in 2003 dollars) in 2015.

These amounts will be adjusted yearly for inflation.

CPF Minimum Sum Observation

More details at CPF website.

So what do you need to take note for property purchase should you use CPF?

If this is the first time you are buying a property, you may choose to use the full sum of your Ordinary Account (OA) as part of your sales proceed towards your first residential property. But should you be buying a second and/or third property onward and should you still decide to use your CPF to pay for your property sales proceed, you are to observe the minimum sum requirements. As of this upcoming adjustment, you are to have at least $74,000 in your Special and/or Ordinary Account before you can use the remaining funds to down pay your next residential property.

Would it be okay if I have 50% of the Minimum Sum (ie. $74,000) in Special Account and I would like to utilize the rest of my Ordinary Account for the next property?

Yes, having the funds in Special Account suffices.

Can I use my CPF funds to downpay investment properties such as Commercial or Industrial ones?

No. As of July 2006, CPF Non-Residential Property Scheme has already been phased out. You can only utilize your CPF account for the sole purpose of purchasing Residential properties only.

Hope this helps in your home purchase planning!

Written by Benson Koh
Benson Koh is a professional real estate realtor with over 9 years of experience specializing in all forms of real estate consultancy and brokeraging of different segments from regal homes to commercial spaces. Also a boutique developer, he manages bothSRI5000 Developments which concentrates on landed homes as part of his land bank segment and Singapore Realtors Inc (SRI), a real estate agency which has over 5 years of group experience. You can reach him here via various channels. [ Facebook | Linkedin | Twitter | RSS Feed ]