Not Enough Cpf In Oa For 15% Dp + Stamp Duty

[mageziyx 0]

Hi all, first time selling my HDB flat and purchasing a private property but do not have enough CPF in OA for the 15% down payment plus stamp duty.

Trying to avoid using up my cash if possible, thus trying to find out if there are ways around this.

I understand that bridging loan can be repaid by the CPF proceeds from the sale of the HDB flat but it requires OTP to be exercised, which makes the schedule very tight...

Anyone aware of any banks that allows bridging loan even without an exercised OTP but using other forms of collateral (cash)? Or maybe one that allows the OTP to be produced at a later time?

Is there any other way I can 'claim' from CPF proceeds beside using bridging loan (other types of loan)? Can I use cash first and then claim from CPF proceeds?

Many thanks in advance for the advice!

[bepgof 20]

Hi all, first time selling my HDB flat and purchasing a private property but do not have enough CPF in OA for the 15% down payment plus stamp duty.

Trying to avoid using up my cash if possible, thus trying to find out if there are ways around this.

I understand that bridging loan can be repaid by the CPF proceeds from the sale of the HDB flat but it requires OTP to be exercised, which makes the schedule very tight...

Anyone aware of any banks that allows bridging loan even without an exercised OTP but using other forms of collateral (cash)? Or maybe one that allows the OTP to be produced at a later time?

Is there any other way I can 'claim' from CPF proceeds beside using bridging loan (other types of loan)? Can I use cash first and then claim from CPF proceeds?

Many thanks in advance for the advice!

I'm now facing of to use cash, cpf, or both issue in paying towards the 15% (TOP in 2014, ground foundation completion abt 1 yr later). I believed you are referring to pte resale, which requires u to pay up 15% withtin 2 weeks, after exercise OTP.

All home mortgage/bridging loans all require signed OTP doc to prove the "valuation price". Anyway, u need to take a bankloan right? 2 weeks is enough to secure a bridging loan and a home loan. So quickly filling up the loan application forms first and seek eligibility for such loans to be approved. Experienced bank office can tell "off hand" the chances of approval by just knowin the earning capability/ present liabilities/amount in cpf.

Next, agent usually earns 0.15% of loan amount you take as "referral fee" upon sucessful granting of the said loan, so give this 0.15% to someone who you prefer. (0.15% is transparent to u).

Edited August 7, 2010 by bepgof

[Spikey 0]

u buying pre resale or pte new? It's easier if it is pte resale (5%) vs pte new (20%). I don't think banks will grant bridging loan without OTP exercised for your HDB as they are using that as collateral. Done bridging loans twice for my properties already.

[bepgof 20]

u buying pre resale or pte new? It's easier if it is pte resale (5%) vs pte new (20%). I don't think banks will grant bridging loan without OTP exercised for your HDB as they are using that as collateral. Done bridging loans twice for my properties already.

Mageziyx very likely is buying pte resale, cos he mentioned "schedule very tight". All who buys resale got this "schedule very tight" problem. 14 days only.

Another way is "bite the bullet" first by paying 15% using all cash, when HDB unit transaction complete and cpf$ back to account, just do a partial payment or even full redemption by using cpf. Get a reno loan if cash is tight. Bridging loan amount is max 15% of the property, but interest quite high.

Edited August 8, 2010 by bepgof

[mageziyx 0]

Thanks bepgof/spikey for the info!

As guessed correctly, I'm looking to purchasing a pte resale...guess I would have to take up the bridging loan in order to claim from cpf and hope buyer can let me stay longer if needed...

if only the banks can accept cash as collateral for the bridging loan instead... then can take my time to sell the flat...

[bepgof 20]

Thanks bepgof/spikey for the info!

As guessed correctly, I'm looking to purchasing a pte resale...guess I would have to take up the bridging loan in order to claim from cpf and hope buyer can let me stay longer if needed...

if only the banks can accept cash as collateral for the bridging loan instead... then can take my time to sell the flat...

Sure banks want to earn your interest. Talk to banks, suggesting to put your cash (15% or more) in their "time deposit" in exchange of a bridging loan. Not too sure if this againt MAS's rule.

Edited August 9, 2010 by bepgof

[sgbluechip 0]

Sure banks want to earn your interest. Talk to banks, suggesting to put your cash (15% or more) in their "time deposit" in exchange of a bridging loan. Not too sure if this againt MAS's rule.

I think only condition for bridging loan is that you have to take up housing loan with the same bank.

[Jgal 0]

sorry .. to check..

if getting a re-sale condo, just need to pay 1% otp + 9% at exercise right? then wait for the sale to complete to pay the rest 90% either using bank / cash.. is this correct ? or i need to pay 19% at exercise ?

Assumming taking 60% loan.

[apple33 0]

sorry .. to check..

if getting a re-sale condo, just need to pay 1% otp + 9% at exercise right? then wait for the sale to complete to pay the rest 90% either using bank / cash.. is this correct ? or i need to pay 19% at exercise ?

Assumming taking 60% loan.

Hi, i just bought a resale condo. paid 1%, obtained OTP, paid remaining 4% (CASH) and 15% ( cpf) to exercise optain. you have to get ready stamp duty (cash) too. Bank loan 80% cos interest rate is low now...

[Jgal 0]

thanks apple cant wait to own my 1st pte pty!

[apple33 0]

thanks apple cant wait to own my 1st pte pty!

u'r most welcome yes... can inagine the excitment!!! all the best to your house hunting

[random_username 0]

Hi, i just bought a resale condo. paid 1%, obtained OTP, paid remaining 4% (CASH) and 15% ( cpf) to exercise optain. you have to get ready stamp duty (cash) too. Bank loan 80% cos interest rate is low now...

i think it's 1% for the option and 4% to exercise it ... the remaining 15% (whether cash or cpf) and the rest comes in later. yes? no?

Edited August 13, 2010 by random_username

[apple33 0]

i think it's 1% for the option and 4% to exercise it ... the remaining 15% (whether cash or cpf) and the rest comes in later. yes? no?

hmm... mine was very hassle-free, my DBS banker and my lawyer met up with me and on the day i exercised the option, i had two checks, one for the remaining 4% and the other for stamp duty... and i signed a few forms for withdrawing remaining 15% ( can be cash or cpf) for cpf etc. The next notice i received from my lawyer was for collection of keys

[random_username 0]

hmm... mine was very hassle-free, my DBS banker and my lawyer met up with me and on the day i exercised the option, i had two checks, one for the remaining 4% and the other for stamp duty... and i signed a few forms for withdrawing remaining 15% ( can be cash or cpf) for cpf etc. The next notice i received from my lawyer was for collection of keys

that's nice of them to save you the hassle

would it be ok to share what/where you bought and how much and what you intend to do with it (occupy it, rent it out ...)? it's nice reading about property purchases - always sound so exciting!

[bepgof 20]

sorry .. to check..

if getting a re-sale condo, just need to pay 1% otp + 9% at exercise right? then wait for the sale to complete to pay the rest 90% either using bank / cash.. is this correct ? or i need to pay 19% at exercise ?

Assumming taking 60% loan.

1. 1% cash to exchange for OTP.

2. Within 14 days to exercise (quite rush, get loan approval asap)(bank will do the valuation later)

3. Pay 4% cash + stamp duty (pay in cash first, can reimburse by using cpf, banker/solicitor know what to do)

4. Pay 15% (either cash or cpf), at this point, you've the banker & lawyer with you to tdo the transaction

5. Usually whole transaction fast = 8wk ~ 12 wk, depend on seller's any special request.

Note: personally expected the sibor/sor will remain low till end of the yr. NExt yr onwards "too far" for me to see, forecast not accurate. See whether west big brother wake up from ICU or not. Sibsor seem to be more preferable by "kiasi" ppl. Short term investment would prefer to use loan peg with Sor.

UOB- offer only Sor, now abt 3mnthsor+0.75%, with T & C

DBS - Sibor, 3mnthsibor+0.75%, seem better T & C than UOB.

OCBC - ??

StanChart - same as DBS, fixed at 1.85% for 2 yr...

Citibank - seem the most "tokong", but application got 6 pages, scare me off.

If you want to do partial payment after selling yr house, better choose those without "lockin". Some features need mentioning:

- Find out if got "cancellation charge", usually at 0.75%x outstanding amount.

- See if loan type can be "converted" to other type withi certain period. (in case make wrong decision for 1st choice)

- Full legal coverage or just "legal subsidy" - abt $500~$1000 difference

Everyday in life is a learning process, enjoy your "shopping". If loan has been taken, each time bank revises the interest rate will send you a letter, upon open the letter box, don't get shocked!

Edited August 13, 2010 by bepgof