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.