1st Appointment Pay Cov With Cheque - How Long Does Hdb Take To Clear It?

[dolpjki 0]

For the 10%, HDB will deduct from whatever you have in your CPF, if that is insufficient to pay the 10%, you have to pay remaining in cash.

[lcy 0]

sorry guys but i was reading the COV & 10% need to be paid during the 1st appt??

how come the letter doesn't state?

oh dear.

and out of the 10%, half can be paid using CPF yes?

Hi retchlow,

Let me try to explain clearer..

There is this 10% downpayment of your valuation price which you can pay fully via both you or you and your spouse cpf. So Scenario 1: if your resale flat is valuation of 200k and Purchase Price fixed at 200k valuation, you need to pay 20k as downpayment and this can be paid up fully via CPF. No cash involved at 1st appt or 2nd appt.

Next there is this 10% of Purchase Price which will come into play if you need to pay COV whereby Purchase Price is more than your valuation price submitted. Scenario 2: if your valuation is 200k but Purchase Price is 250k, there is a COV of 50k. At 1st Appt, you will need to pay up to 10% of the Purchase Price which is 0.1 x 250k = 25k. as the Cash. The remaining 25k Cash will be paid up in 2nd Appt. Do note you still need to pay the 10% of valuation price which is 20k but this can be settled using CPF

Scenario 3: Valuation is 200k while Purchase Price is 210k which means COV is 10k, since 10% of 210k is already 21k and more than your 10k COV, you just need to pay up this 10k Cash on 1st Appt to settle the cash portion.

By the way, i went through the scenario similar to scenario 2 so that one i am 100% sure thats how it works. For scenario 3, it seems like a case for the TS but of coz his amt was much higher.

As to why your letter didnt state any cash for 1st Appt, i am not sure why is that the case. Perhaos you want to share with us your numbers you are paying so that we can figure out?

Otherwise, I hope the above explaantions clears your doubts!

I see... So factor in the enbloc gains liao.. hehee...

Its a good move lah.. u get priority selection next time right.... plus some $$ from govt.

All the best to you when ur balloting comes along!

Thanks for your well wishes, will need lots and lots of it to get a good ballot number!

[retchlow 7]

Hi lcy

funny my letter doesnt state any cash needed during first appt. even my agent oso said the same thing. i'm applying for bank loan - not eligible for hdb loan since i'm downgrading. could it be due to this?

anyway, the house was valued at 213,000. COV is 21,000.

do let me know how this is calculated k?

thanks so much!

my first appt is this fri, 1 aug!!

Edited July 30, 2008 by retchlow

[lcy 0]

Hi lcy

funny my letter doesnt state any cash needed during first appt. even my agent oso said the same thing. i'm applying for bank loan - not eligible for hdb loan since i'm downgrading. could it be due to this?

anyway, the house was valued at 213,000. COV is 21,000.

do let me know how this is calculated k?

thanks so much!

my first appt is this fri, 1 aug!!

Hiya,

I found my 1st appt letter but didnt see any indication of the cash i have to pay for this 1st appt. You may want to check with your agent on this matter. Indeed if you are applying for Bank Loan and downgrading, i am not sure if there is an exception to these cases.

Having said that, if you were to pay the cash on 1st appt assuming the standard 10%, it should be something like this.

Purchase Price = 213 k + 21 k = 234 k. Thus you need to pay 10% cash of 234k by 1st Appt which works out to be 23.4k. Since this amount is more than your total COV of 21k, you would have to pay up all your COV of 21k by 1st Appt. Do note that as you would have paid up an initital depoist during the OTP (Eg: 1K), you just need to pay 20k (21k-1k)

With your 1st Appt this Fri, seems like the timing is tight for you to raise the cash. However, if i am not wrong, you have up to 14 days to pay up this cash from your 1st Appt date.

All The Best!

[retchlow 7]

thanks so much lcy!!

[typhoonz 0]

thanks so much lcy!!

Hi retchlow

do let me know how much cash you are paying on first appointment.

Like u, I am also downgrading and the first appointment letter never indicate how much cash I need to pay

I am also taking bank loan and first appt is on 6th sep

[retchlow 7]

no problem

[retchlow 7]

Hi typhoonz

finally completed the first appt @ hdb today! i didn't have to pay anything. according to the lawyer (i'm using the bank's lawyer), the balance COV & 5% cash will be paid about 10 days before the 2nd appt date.

hope this clarifies.

[typhoonz 0]

Hi typhoonz

finally completed the first appt @ hdb today! i didn't have to pay anything. according to the lawyer (i'm using the bank's lawyer), the balance COV & 5% cash will be paid about 10 days before the 2nd appt date.

hope this clarifies.

Hi retchlow

thanks, that explain why no $$$ was indicated on the letter.

I assume there will be another letter for the cash payment then i.e. 10 days before 2nd appt date?

Edited August 5, 2008 by typhoonz

[retchlow 7]

Hi retchlow

thanks, that explain why no $$$ was indicated on the letter.

I assume there will be another letter for the cash payment then i.e. 10 days before 2nd appt date?

hey typhoonz

yes the lawyer will send you the bill. cheque to be paid directly to lawyer & they will disburse the cash to the seller from there.

Edited August 11, 2008 by retchlow