The new rules on buying properties using CPF or HDB housing loans is a move to expand the demand pie of potential homebuyers, as well as the supply pool of potential sellers. As the new borrowing rules on minimum property tenure are readjusted from 30 to 20 years, and pegged to the younger homebuyer’s lifespan, potential homebuyers can now qualify for some developments that have otherwise been out of their reach.
Older homebuyers may also benefit from these changes, says Christine Sun, head of research and consultancy at OrangeTee & Tie. At the same time, existing owners of developments with 30 to 40 years left have effectively received a 10-year extension to their properties saleability. Apart from unlocking additional value to older properties, this will also allay the fears of people owning aging assets.
Previously, older homebuyers may not be able to use CPF for flat purchases but with the new regulation, some will be able to use CPF for their home purchase. It also helps the retirement plan for older homebuyers as many may want to use more CPF for home purchase and have more cash for daily expenses or for retirement.