What is Withdrawal Limit? — Singapore property glossary

Q: What is Withdrawal limit?

The Withdrawal Limit, WL, typically 120 percent of the Valuation Limit, is the second, higher ceiling on CPF usage for a private property. CPF can fund the mortgage up to the WL only after the buyer has set aside their CPF retirement sum; beyond it, the mortgage must be paid in cash.

What is Withdrawal limit? The Withdrawal Limit, WL, is the higher, second ceiling on CPF usage for a private property, typically 120 percent of the Valuation Limit. Once a buyer has set aside their required CPF retirement sum, CPF can continue funding the mortgage beyond the Valuation Limit up to the Withdrawal Limit, after which the mortgage must be paid entirely in cash.

The Withdrawal Limit only becomes relevant once a buyer has crossed the Valuation Limit and still needs CPF to service the mortgage, typically on a higher priced property relative to the buyer's CPF balance and income.

To use CPF between the Valuation Limit and the Withdrawal Limit, the buyer must first have set aside the prevailing CPF retirement sum in their Retirement Account, a condition that does not apply below the Valuation Limit. This is designed to protect a member's retirement adequacy even while they draw on CPF for housing.

Once the Withdrawal Limit is reached, CPF stops covering the loan entirely, and the remaining instalments must be paid in cash for the rest of the loan tenure, a scenario worth modelling in advance for any large private property purchase funded heavily by CPF.

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Winfred Quek is an Associate Marketing Consultant at Crestbrick Pte Ltd (CEA Licence No. L31010886H). CEA R073319H. This page is for general information only and does not constitute financial, investment, or legal advice. Verify current figures with IRAS, HDB, CPF Board, or MAS before making any decision.

Withdrawal limit

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