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World Infromation / Blog : No.10134 : 100% Valuation Limit (VL), Available Housing Withdrawal Limit (AHWL), CPF Withdrawal Limit For Housing
In Reply to: What are the limits for our CPF to use on housing payment? posted by on June 25, 2007 at 10:26:36:
100% Valuation Limit (VL)
The VL is the lower of the purchase price of the property or the value of the property at the time of purchase.
CPF savings up to the VL can be used,
If you are using CPF to pay both the housing loan’s principal amount and the interest charges,
your housing loan may have outstanding when your CPF withdrawal has reached the 100% Valuation Limit (VL).
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Available Housing Withdrawal Limit (AHWL)
When the 100% VL reached, CPF savings may continue use to repay the housing loan up to the applicable Housing Withdrawal Limit,
for below 55 years old :
The AHWL is the available Ordinary Account balance after setting aside the CPF Minimum Sum cash component.(50% of MS)
for above 55 years old:
The AHWL is the available Ordinary Account balance less any CPF Minimum Sum cash component shortfall.
AHWL is a moving limit. CPF used to make a lumpsum repayment on loan may make you reach the AHWL earlier, but it will reduce the interest charges.
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CPF Withdrawal Limit For Housing
Applies to those who:
buy a HDB flat from 1 January 2003, financed with a bank loan.
refinance their HDB concessionary loan with a bank loan from 1 January 2003.
take a bank loan to buy a private property from 1 September 2002.
refinance an existing housing loan taken before 1 September 2002 for a private property from 1 September 2002.
Limit depends on when the property is purchased or when the housing loan is refinanced
2003 150% of VL
2004 144% of VL
2005 138% of VL
2007 126% of VL
1 Jan 2008 onwards 120% of VL
when the limit reached, it will not be able to withdraw any more CPF for a particular property but can use CPF for other properties which have not reached the limit.
Private properties with remaining leases of less than 60 years but at least 30 years, will have lower limits.