How Much Cash Money To Pay For Cov Resale Flat

[forgotten 1]

HDB resale:

1. Downpayment = 1k, follow by 4k after signing OTP with 14 day after paying downpayment. Hard cash.

2. COV(cash)

3. Stamp duty calculation = purchase price x 3% -5,400.(CPF or cash)

4. Valuation report = $180 (cash)

5. Agent fee ~ 1% + 7%GST (cash

6. Application submission ~ $20?? (cash)

7. Legal fee ~ $3000 (cpf or cash), or bank may absorb this.

8. Bank loan, 80% or 90% of purchase price. Depend on bank's quota & yr background.

9. Take about 1 week or so to get the "letter of offer" from bank. No hurry to exercise OTP until u got the letter. If not approve, yr 1K is a "donation".

6. Application submission ~ $60 (cash) if submit online, $80 (cash) if submit hardcopy.

7. Legal fee ~ $3000 (cpf or cash), bank absorb 0.4% to 0.5% depending on which bank.

[JustMortgage 0]

Legal fee ~ $3000 (cpf or cash), bank absorb 0.4% to 0.5% depending on which bank.

Bank will absorb full in some cases if the mortgage loan amount is high.

BTW, 3000 is a little on the high side. At the same time 0.4% or 0.5% is dependent on the mortgage loan approved.

e.g. 300,000 = $1,200 to $1,500 legal subsidy

Law firm must be on the panel of the bank and to act for both client and bank.

[silvestz 0]

Hi,

I have been reading in this forum for I am looking to get a bank loan for my flat purchase.

Looking at fellow forumers providing the calculation, I have tried to do my own as below.

Appreciate some advice on the below. Thanks.

Valuation Price - 280000

Cash Over Valuation - 20000

Purchase Price - 300000

*HDB Grant - 20000 (where do I deduct this 20000 from?)

Taking 80% Mortage Loan,

80% of Valuation - 224000

5% on Valuation (Cash) - 14000

15% on Valuation (CPF) - 42000

Stamp Duty (CPF) - 3800

Legal Fees (CPF) - 2500

Agent Fees @ 1% with GST (Cash) - 3210

Total Cash Required 37210

Total CPF Required 48300

Cheers,

SiL

[JustMortgage 0]

Hi,

I have been reading in this forum for I am looking to get a bank loan for my flat purchase.

Looking at fellow forumers providing the calculation, I have tried to do my own as below.

Appreciate some advice on the below. Thanks.

Valuation Price - 280000

Cash Over Valuation - 20000

Purchase Price - 300000

*HDB Grant - 20000 (where do I deduct this 20000 from?)

Taking 80% Mortage Loan,

80% of Valuation - 224000

5% on Valuation (Cash) - 14000

15% on Valuation (CPF) - 42000

Stamp Duty (CPF) - 3800

Legal Fees (CPF) - 2500

Agent Fees @ 1% with GST (Cash) - 3210

Total Cash Required 37210

Total CPF Required 48300

Cheers,

SiL

If you are buying the resale flat with a bank loan, the CPF Housing Grant will be treated as part of your CPF fund. It can be used to pay for the CPF portion of the initial payment towards the purchase of the resale flat or to reduce the mortgage loan.

Therefore your mortgage loan is $204,000.00

[Guest Goobii]

Hi,

Just happen to see this thread and I think is good that we could share knowledge and further assist many more who need more advise.

Here is my confusion and doubts... hope someone can advise me ...

My client has a house which he had already paid in full since 2003. From my calculation he suppose to have at least $255k positive cash profit and about $100k return to cpf after selling his house. They had also a combine CPF of $80k.

However, he could not take a HDB loan and will be using a BANK loan instead. From my understanding the bank could bridge the 5% cash needed for the 50% loan balance 45% using CPF but, The confusion and doubts lies here...

My client wanted to purchase the next house in which the COV is around $30k. From my understanding this amount must be paid using HARD cash, but what I want to know is...

1) Can my client go ahead with selling the house (A) and go ahead for the 1st appointment after that the buying of the house (B) 1st appointments comes later... or vice verse. Which appointment to go 1st... or can it be together ?

2) Can they inform the lawyer to proceed with the sale of the house (A) and house (B) without the need to pay for the COV during the 1st appointment for house (B) since they had positive sale profit from house (A) and still using bank bridging loan.

3) I could have a referral for you. Do you want to liaise with me? Since, if you could clear my doubts in here...

Edited November 9, 2009 by Goobii

[asoon88 0]

Hi,

Just happen to see this thread and I think is good that we could share knowledge and further assist many more who need more advise.

Here is my confusion and doubts... hope someone can advise me ...

My client has a house which he had already paid in full since 2003. From my calculation he suppose to have at least $255k positive cash profit and about $100k return to cpf after selling his house. They had also a combine CPF of $80k.

However, he could not take a HDB loan and will be using a BANK loan instead. From my understanding the bank could bridge the 5% cash needed for the 50% loan balance 45% using CPF but, The confusion and doubts lies here...

My client wanted to purchase the next house in which the COV is around $30k. From my understanding this amount must be paid using HARD cash, but what I want to know is...

1) Can my client go ahead with selling the house (A) and go ahead for the 1st appointment after that the buying of the house (B) 1st appointments comes later... or vice verse. Which appointment to go 1st... or can it be together ?

2) Can they inform the lawyer to proceed with the sale of the house (A) and house (B) without the need to pay for the COV during the 1st appointment for house (B) since they had positive sale profit from house (A) and still using bank bridging loan.

3) I could have a referral for you. Do you want to liaise with me? Since, if you could clear my doubts in here...

This present house of your client must have been a second time he had taken a subsidised HDB loan. Therefore, he is not eligible to apply for a third time. OR he could be buying a similar size or smaller unit. Again this will not allow him to borrow from the HDB.

With regards to Q1, he can buy House B if he has the cash to pay COV and other misc charges. If he doesn't have the cash, better to sell House A first and wait for 4~5 mths before doing so. HDB appts are very long nowadays.

With regards to Q2, Lawyers don't give a ****. They just do up the paperwork. Buyer must pay Seller....period. Positive Sale Profit or not, lawyers cannot guarantee TIME. Neither will HDB. So long as all procedures are followed, your client will just have to follow through with the respective payments.....if he has the cash otherwise he will breach the terms spelt out under HDB's resale procedures.

With regards to Q3, if you are an agent, you are poorly qualified one. I am not but I seem to know better !

Edited November 9, 2009 by asoon88

[JustMortgage 0]

The question being asked is in simplicity : "How to pay the COV for the next purchase?"

As a real estate agent, you should be in a better position to answer this.

We don't help clients to buy sell houses but having said that, the answer is "Complete the selling first and receive the proceeds."

Thank you for your offer to refer a client to us. You can ask your client to call us or visit us via our website.

We do not pay referral fees to real estate agents. We reward referrals and referrers with takashimaya vouchers as a token of our appreciation.

[Guest Goobii]

Hi all,

"How to pay the COV for the next purchase?"

Had cleared my own question with the HDB officer, as for the cash above valuation for the next purchase. The house (A) should go ahead for the selling 1st and if you use a bank loan. Then the money from the sale proceed of house (A) can then be completed 1 or 2 weeks before the completion for house (B).

so you can either

1. ask for extension for selling hse. so that after completion of flat A. Then can have the money from the positive sale proceed and have time for renovation.

2. look for credit company to loan the client money first.

Hope this clear some of the doubts for those who is selling the house and is wondering how to pay for the cash above valuation while using bank loan.

Edited November 9, 2009 by Goobii

[pepamint_L 0]

Hi all,

I would like to ask whether anyone knows how the CPF reimbursement for Stamp Duty and Legal Fees work.

Is it given back to me in cash or? My calculation for initial cash as below, is it correct?

Valuation Price $500,000.00

COV $35,000.00

Total Sale Price $535,000.00

OTP $1,000.00

Exercise OTP $4,000.00

Valuation Report $186.55

5% initial payment $20,000.00 [ 5% of Valuation Price - (OTP+Exercise OTP)]

CPF Monies available $200,000.00

Loan Amt $300,000.00

Stamp duty $7,506.00 [

Legal Fees $2,500.00

Agent Fees $5,350.00 [1% of Total Sale Price]

Total Cash $65,536.55

[May_dream1 14]

Hi all,

I would like to ask whether anyone knows how the CPF reimbursement for Stamp Duty and Legal Fees work.

Is it given back to me in cash or? My calculation for initial cash as below, is it correct?

Valuation Price $500,000.00

COV $35,000.00

Total Sale Price $535,000.00

OTP $1,000.00

Exercise OTP $4,000.00

Valuation Report $186.55

5% initial payment $20,000.00 [ 5% of Valuation Price - (OTP+Exercise OTP)]

CPF Monies available $200,000.00

Loan Amt $300,000.00

Stamp duty $7,506.00 [

Legal Fees $2,500.00

Agent Fees $5,350.00 [1% of Total Sale Price]

Total Cash $65,536.55

Legal fees after subsidised by bank will be paid via CPF... the same for stamp duties. Only if you are purchasing private properties, then you have to pay stamp duties upfront then you will get refund from CPF for stamp duties into your bank account directly.

Yes, your calculation is correct.

Plus you need to pay property taxes to the seller on the day of completion (ie 2nd appt). HDB will inform your lawyer the amount and either you can pay cash to seller or you can pay to lawyer and they will pay on behalf of you. for me, i choose to pay directly to seller on 2nd appt.

[pepamint_L 0]

Legal fees after subsidised by bank will be paid via CPF... the same for stamp duties. Only if you are purchasing private properties, then you have to pay stamp duties upfront then you will get refund from CPF for stamp duties into your bank account directly.

Yes, your calculation is correct.

Plus you need to pay property taxes to the seller on the day of completion (ie 2nd appt). HDB will inform your lawyer the amount and either you can pay cash to seller or you can pay to lawyer and they will pay on behalf of you. for me, i choose to pay directly to seller on 2nd appt.

Thank you May_dream! Congratulations on you finding your dream home too!!

By the way, when i checked the stamp duty on HDB website: http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/...al?OpenDocument

I referred to Fees Payable to HDB part : For Mortgage (Based on Loan Amount) since I'm taking loan from bank.

I shouldn't be looking at the Fees Payable to Commissioner of Stamp Duties or Registry of Land Titles and Deeds right?

I didn't scroll down the page earlier, didn't see soo many things below...

[May_dream1 14]

Thank you May_dream! Congratulations on you finding your dream home too!!

By the way, when i checked the stamp duty on HDB website: http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/...al?OpenDocument

I referred to Fees Payable to HDB part : For Mortgage (Based on Loan Amount) since I'm taking loan from bank.

I shouldn't be looking at the Fees Payable to Commissioner of Stamp Duties or Registry of Land Titles and Deeds right?

I didn't scroll down the page earlier, didn't see soo many things below...

Fees payable to HDB if taking bank loan : NA (you read carefully).

You should be looking at fees payable to Commissioner of Stamp Duties or Registry of Land Titles and Deeds.

Basically the calculation if above $360k, will be purchase price x 3% - $5400. Yours will be $500k x 3% =$15000 then -$5400 = $9600.

[pepamint_L 0]

Fees payable to HDB if taking bank loan : NA (you read carefully).

You should be looking at fees payable to Commissioner of Stamp Duties or Registry of Land Titles and Deeds.

Basically the calculation if above $360k, will be purchase price x 3% - $5400. Yours will be $500k x 3% =$15000 then -$5400 = $9600.

@_@ ! Oops, thank you!! wow thankfully you pointed that out, I initially calculated $7.5K+ only..big difference *sweat*

[bepgof 20]

Stamp fee calculation is based on "purchase price" not "valuation price" = purchase price x3%-5400.

= 535kx0.03-5400=$10,650

- Legal fee(~2K) is usually absorbed by bank in full if loan amount>350k.Negotiable if long standing with good credit record.

http://www.moneymind.com.sg/Tips_OnBuyingAProperty.aspx

@_@ ! Oops, thank you!! wow thankfully you pointed that out, I initially calculated $7.5K+ only..big difference *sweat*

Edited March 16, 2011 by bepgof