CPF valuation & withdrawal limit serve important purpose: Tan Chuan-Jin
- POSTED: 16 Sep 2013 22:23
This graph is an experimental feature that tracks number of views over time.
Acting Manpower Minister Tan Chuan-Jin has stressed the valuation and withdrawal limit continue to serve an important purpose in ensuring CPF members purchase a property they can afford.
SINGAPORE: Acting Manpower Minister Tan Chuan-Jin has stressed the valuation and withdrawal limit continue to serve an important purpose in ensuring CPF members purchase a property they can afford without having to deplete their retirement CPF savings.
Mr Tan said this in a written parliamentary response to MP for Sembawang GRC Ong Teng Koon.
Mr Ong had asked whether the CPF Housing Withdrawal Limit of 120 per cent of the Valuation Limit is enough to fully finance a typical loan of 20 to 25 years, at a typical interest rate of between two and five per cent.
Mr Tan said whether a member is able to fully finance his housing loan with his CPF savings depends on several factors.
These include the property price and the corresponding loan amount required, as well as the loan tenure and interest charge.
He added most CPF members have been prudent and taken the CPF usage limits for housing into account, before deciding which property to purchase.
Mr Tan noted the number of CPF members who reached their valuation limit is small, at less than half a per cent of those using their CPF to service their housing loans.
The number who reached the withdrawal limit is even smaller, he added.
Mr Tan also said where the case merits, flexibility has been exercised to allow affected members to use their CPF savings beyond their valuation limit.