Can both parties use CPF in a 99-1 arrangement

In a 99-1 property ownership arrangement in Singapore, the use of Central Provident Fund (CPF) monies can be complex and has specific implications.

- When a property is purchased under a 99-1 tenancy in common, both parties can potentially use their CPF Ordinary Account funds, but there are conditions. The party with the larger share (in this case, 99%) can use their CPF funds more freely for the down payment and monthly mortgage installments.
- However, the party with the smaller share (1%) can also contribute CPF funds, but the arrangement must be carefully planned. If the party with the 1% share has used a substantial amount of CPF monies towards the property, it may not be feasible to have a 99-1 split without paying a lump sum of cash, subject to CPF's approval for waiving any CPF shortfall.
- It is crucial to ensure that both parties have enough CPF funds to cover the monthly mortgage payments. If one party leaves the arrangement, only the remaining owner's CPF funds can be used for mortgage payments, and any remaining balance must be paid in cash.

This arrangement allows both parties to leverage their CPF funds to a certain extent, but it is essential to plan and budget carefully to avoid any financial constraints or CPF shortfall issues.