Repayment of CPF Funds and Accrued Interest upon Withdrawal of Name from Co-ownership of HDB Flat

Dr Intan Azura Mokhtar asked the Acting Minister for Manpower whether the requirement for the repayment of CPF funds and accrued interest upon withdrawal of one's name from the co-ownership of a HDB flat can be reviewed, where if this is done by a Singaporean who is co-owning the flat with his aged parents, an option can be given to the younger Singaporean co-owner to seek (i) lump sum repayment of the CPF funds used; (ii) instalment repayment of the CPF funds used; or (iii) waiver of the repayment of CPF funds used.

When a CPF member wishes to relinquish his ownership of a property, he is required to refund the principal amount of CPF savings withdrawn for the property, as well as any interest that would have accrued had this amount not been withdrawn, before we are able to lift the CPF charge on his property. Otherwise, there is a risk that the monies may not be returned to the member’s CPF account, compromising his retirement adequacy.

Dr Intan suggested that the child be given a choice of (a) lump sum repayment of the CPF funds used; (b) instalment repayment of the CPF funds used; or (c) waiver of the repayment of CPF funds used. I would like to clarify that some flexibility in repayment is already provided for today. The full refund amount is only required within six months of the child taking possession of his new flat, at which point he withdraws as a co-owner in his parents' flat. This could take a few years, if he is buying a new flat that is under construction. In the interim, voluntary repayments can be made to progressively bring down the outstanding refund amount. If the parents are eligible for HDB or bank loans or have CPF monies that are available to be used for housing, these monies can also be used to make the refund upon the withdrawal of the child as a co-owner.

However, we are unable to allow the child, or any CPF member, who has used CPF savings for a property, a waiver of the required refund when he sells or relinquishes ownership of the property. Doing so would compromise his retirement savings which he will need when he enters old age.

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