Written Answer by Minister for Manpower Dr Tan See Leng to PQ on Percentage of Monthly CPF Ordinary Account Contributions Used to Service HDB Housing Loans and Property Loans

NOTICE PAPER NO. 1618 FOR THE SITTING ON 9 JANUARY 2023 
QUESTION NO. 2570 FOR WRITTEN ANSWER

MP: Assoc Prof Jamus Jerome Lim 

To ask the Minister for Manpower what is the current percentage of monthly CPF Ordinary Account contributions being used to service (i) HDB housing loans obtained through HDB Loan Eligibility (HLE) Letters and (ii) property loans from financial institutions for HDB flats and private property, broken down by income quintile. 

Answer:

The median percentages of monthly CPF Ordinary Account contributions withdrawn to service (i) HDB housing loans, (ii) loans from Financial Institutions (FIs) for HDB flats and (iii) loans from FIs for private properties by income quintile among CPF members who had made housing instalments as at December 2021 are shown in Table 1 below.

Notes: 

1. Data based on CPF members who made housing withdrawals for monthly instalments from their Ordinary Account balances in December 2021.
2. Excludes members with zero wages.

The CPF system was designed to assist Singaporeans to own their homes and to service their mortgages with little or no out-of-pocket cash. Together with a commitment and policy to keep public housing affordable and accessible, and with many Singaporeans tapping on their Ordinary Account savings, the CPF system has helped Singaporeans achieve their aspirations to own their homes.

In addition, our CPF system is also designed to assist members to save for their future retirement and healthcare needs, by allocating a proportion of members’ CPF contributions to their Special and MediSave Accounts. These accounts cannot be used for housing.