216 views

CPF LIFE and DBS create Singapore’s first reverse mortgage product

Ageing Singaporeans now have more options to monetise their private property in preparation for their retirement.

The Central Provident Fund Board (CPFB) launched with DBS’ Home Equity Income Loan (EIL) Singapore’s first reverse mortgage product.

The government has introduced monetisation options that would give ageing property owners ways to unlock their housing equity and receive higher retirement payouts.

These include the Lease Buyback Scheme for CPF members who own HDB flats.

Private property owners could also use their EIL for CPF LIFE premiums with a higher interest rate than the current 4% per annum.

“We look forward to seeing other banks launch similar loans to complement the housing monetisation options offered by the Government to HDB flat owners so that more CPF members can enjoy the benefits of CPF LIFE and have a secure retirement. As with all important financial decisions, CPF members should understand the nature of the product, and assess their risk tolerance and retirement needs before deciding if it is appropriate for them,” said the CPFB in a statement.

 

Follow the links for more news on

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!