The prevailing CPF Minimum Sum will be increased to \$123,000 effective 1 July 2010 (source: Straits Times). This is a \$6k increase from the previous \$117,000.

If you are thinking of using CPF to pay for a second property, you will need to set aside half of the prevailing Minimum Sum. This amount is currently \$58,500, but from 1 July it will be \$61,500.

The CPF policy is: If you are already using CPF for an existing property, you have to first set aside half of the prevailing CPF Minimum Sum in your Ordinary Account + Special Account. Then you can use the excess savings in your Ordinary Account for the second and subsequent properties.

See these illustrative examples from CPF – but remember to replace “\$58,500” with “\$61,500”.

However, some people (myself included) think that the current property prices are simply too high.

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12 Comments

1. poor but surviving on

half of the minimum sum in OA AND SA? Not just OA?

What’s the sum then for OA and SA?

2. maintain 61.5k in OA+SA, then the excess in OA can be used. e.g. if you have 61.5k in SA, then any amt in OA can be used. but if you have \$0 in SA and 62k in OA, then you can only use 62k-61.5k=\$500. third e.g.: if you have 40k in OA and 30k in SA, then you can only use 40k+30k-61.5k=8.5k.

3. What if the fund in SA or OA have been used for investment? Are they excluded from the min sum calculation?

4. yes, excluded. the purpose is for you to maintain the required amount in “cash”.

5. is this minimum sum requirement only apply to individual when reach age 55 and wanted to purchase a 2nd property?

6. no, anyone can purchase a 2nd property with money in OA as long as he sets aside \$61,500 in OA + SA.

7. If only my wife uses her CPF to pay for our first property (i.e. I contribute all cash), do I need to keep aside the half of minimum sum from my CPF for the 2nd property? (assuming I’m under 55.)

8. If I had fully paid my loan using cpf for my first property, and intend to use cpf to service my 2nd property.. Do I need to set aside a min sum of 61,500? Even If I have fully paid off my loan using cpf for my first property?

9. Does SRS account make up the minimum sum of 61,500?

and i will like to ask Sheila question also.

10. For the fund in SA or OA have been used for investment, can it be use in min sum calculation?
Below is an extract from CPF website that stated cna be included in minimum sum:

Note: For owners who have used or are using CPF for an existing property, they must set aside half of the prevailing Minimum Sum before they can use the excess savings in their Ordinary Account for the second/subsequent property. Savings in the Special Account (including the amount used for investments) and Ordinary Account can be used to meet half of the prevailing Minimum Sum. Please note that as the Minimum Sum will be raised in July each year, the amount you need to set aside will be adjusted accordingly.