Pledge property for CPF minimum sum

Pledging your property

Your property, which you had purchased using your CPF savings, was automatically pledged for part of your Minimum Sum when you reached 55 if you were not able to set aside the required Minimum Sum in cash. 

You may pledge your property up to 50% of the MS after you have obtained the consent from all other co-owners to do so.

The amount that you can pledge depends on

• HDB’s quarterly median resale prices for HDB flats or valuation price for private properties;
  
• Outstanding housing loan amount (including non-housing loan for private properties); 
  
• Co-owner’s CPF usage (for joint-ownership cases); and
  
• Your share of the property.

Upon the sale of the property, you will need to refund the principal CPF amount withdrawn towards the property plus the accrued interest as well as the pledged amount.

Examples illustrating the amounts that can be pledged:

EXAMPLE 1

Where the co-owner’s CPF usage is less than 50% of the residual value of the property
HDB’s average valuation price	:$300,000
Less outstanding HDB loan	:$100,000
Residual value :	:$200,000
Co-owner's CPF usage :	:$ 40,000
Member's share :	:$ 100,000

In example 1 above, as the co-owner's CPF usage is less than 50% of the residual value, the member’s share of the property would be based on 50% (assuming that the property has only two owners with 50% share each) of the residual value. He can pledge the property up to the maximum limit of $77,500 if his MS is $155,000 and he has fully set aside this amount in his RA.

EXAMPLE 2

Where the co-owner’s CPF usage is more than 50% of the residual value of the property
HDB’s average valuation price	:$300,000
Less outstanding HDB loan	:$200,000
Residual value :	:$100,000
Co-owner's CPF usage :	:$ 80,000
Member's share :	:$ 20,000

In example 2 above, as the co-owner's CPF usage is greater than 50% of the residual value, the member's share of the property would be the residual value less the co-owner's CPF usage. The member can only pledge an amount of $20,000(i.e. $100,000 less $80,000).

EXAMPLE 3

Where the co-owner did not use his CPF for the property and has 50% share ownership
HDB’s average valuation price	:$300,000
Less outstanding HDB loan	:$250,000
Residual value :	:$ 50,000
Co-owner's CPF usage :	:$          0
Member's share :	:$ 25,000

In example 3 above, as the co-owner did not use his CPF for the property and the member has 50% share of the property, the amount that the member can pledge is $25,000 only.