Currently, Executive Condominium (EC) purchasers have to pay a downpayment of 20% cash. With effect from 1 Sep 2002, for purchase of ECs, a minimum 10% of the downpayment will have to be paid in cash, while the remaining 10% can be paid out using CPF funds. This is in line with the treatment of private properties and HDB flats bought with bank loans. [Note: from 1 Sep 02, a minimum 10% of the downpayment for private property purchases will have to be paid in cash, while the remaining 10% can be paid out using CPF funds. For HDB flats bought with bank loans, the 10% cash downpayment requirement will be phased in over 5 years, starting from 2% on 1 Jan 2004].

From 1 Sep 02, the CPF Housing Grant, which is given to eligible first-time buyers, cannot be used to offset the 10% cash downpayment. It can be used to pay for the 10% CPF downpayment. It will be treated as part of the CPF funds of the purchaser and will be included in the computation of the CPF withdrawal limit, which will be fixed at 150% of the property value from 1 Sep 02, and gradually reduced to 120% from 1 Jan 08.

Similar to the treatment for private properties, EC buyers who have not paid the second 10% downpayment by 1 Sep 02, will also have the choice of using their CPF savings to pay half of the 20% downpayment, provided they agree to the new rules on the bank’s priority charge and CPF withdrawal limit.

For enquiries, please contact Diane Loo at 6325-7264.

Issued By : Ministry of National Development

Date : 14 Aug 02