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CPF Usage for Lesser balance Lease Tenure. Make Sure the Youngest Buyer can Stay up to 95 Years old in the property.

admin — Wed, 13 Jan 2021 01:00:44 +0000

Things to Take Note when buying lesser balance lease tenure Properties.

Buying a private property from 10 May 2019 whereby if the remaining lease of the property does not allow the youngest to stay until age 95, the amount of CPF that can be used will be pro-rated.

Some home buyers may overlook and only realized after the purchase of the property.

Case Study.

Jason, Age 45 buys a private property with a balance lease of 80 Years

At a purchase price of $2,200,000 and Value price of $2,000,000.

For this case,

Valuation Limit (VL) of Property = $2,000,000

Withdrawal Limit (WL) of the property = $2,400,000

For this case, Jason at Age 45, 80 years balance you can use 100%.

If Jason buys a private property with balance 45 Years of Remaining lease, his CPF usable will be 83%.

The below Table for Pro-Rated CPF usable based on Remaining Lease applies to Private Residential and HDB.

Also note that CPF cannot be used if the remaining lease is less than 20 years.

You can also use CPF housing Usage Calculator on CPF Website to Calculate the amount of CPF that can be used.

Feel free to contact buycondo.sg and we will provide you with Professional Advice.

The post CPF Usage for Lesser balance Lease Tenure. Make Sure the Youngest Buyer can Stay up to 95 Years old in the property. appeared first on Wing Tai Holdings Singapore.

My CPF Ordinary Account (OA) Savings Can I use to Pay for Property?

admin — Mon, 11 Jan 2021 09:36:33 +0000

CPF can I use to Pay for Property?

What else can I pay using CPF other than the Downpayment for property?

Generally, CPF OA savings CAN be used for

a. Payment of purchase price or downpayment of the property. (If you get Maximium loan of 75%, you can use 20% To pay part of the downpayment and on top of that if you have excess now can pay for the rest of the below mention.

b. Repayment of housing loan and/or to pay the monthly installment of the

housing loan is taken.

c. Repayment of loan and/or to pay the monthly installment of the loan

taken for the purchase of land and/or construction.

d. Payment of stamp duty and legal costs incurred in connection with the

purchase, refinancing, or construction of the house.

Please note for purchase of Resale Private Condo, you have to pay first in advance at the law firm when you exercise the option before the lawyer can write in to CPF Board for Reimbursement.

e. Home Protection Scheme (HPS) Insurance premiums for HDB flats.

Generally, CPF OA savings CANNOT be used for

a. The purchase price that is above the market value.

b. The minimum cash downpayment required for bank loans.

c. Cost of renovation.

d. Agency commission.

e. A property with a remaining lease of less than 20 years.

The post My CPF Ordinary Account (OA) Savings Can I use to Pay for Property? appeared first on Wing Tai Holdings Singapore.