For Singaporeans or PRs, we have something called CPF funds. There’s only a handful of items that we can use our CPF funds for. And most of us would have used it for housing purposes.
If you are intending to buy a new house, there are many things to watch out for, especially if you are intending to take on a loan for your new house. The magical age to watch out for here is 55 years old. This is the time when there are many complications/changes when it comes to utilising your CPF for housing purposes.
Many cases I’ve seen met with a problem changing or getting a new house on or after this age. There simply isn’t enough funds to be set aside for the compulsory retirement funds and to finance the new house by today’s standards.
So if you are a few more years away from the magical age of 55 and intends to continue to use your CPF funds for housing purposes, do start making plans now. You’ll also need some time to source for your ideal home.
If you are still far away from the age of 55, good! It’s never to late to start any planning now to ensure you have enough retirement funds.
However, if you have already reached 55 years old, and still intends to buy a new house, do watch out and do a proper financial check to ensure you have enough before making any commitments.
