30 Years House Hdb Loan

[snaem85 1]

this is a random question which i suddenly tot of.

if lets say i continue to pay my supposedly hdb monthly installments without fail.. does that equate to clearing the loan only after 30 years?

like that until 55 also cannot ORD!

[therat 18]

est by 25-26 yrs, your VL reach.

U only can use hard cash to pay the HDB monthly installment.

By 55 yrs old, if you still working. Good.

If not,

1 hand.. u will be worry abt HDB installment, PUB bill, simi tong tong bill

another hand,.. u will be worry abt kid education fund.

[snaem85 1]

est by 25-26 yrs, your VL reach.

U only can use hard cash to pay the HDB monthly installment.

By 55 yrs old, if you still working. Good.

If not,

1 hand.. u will be worry abt HDB installment, PUB bill, simi tong tong bill

another hand,.. u will be worry abt kid education fund.

whats VL?

yaa true! 55, i will be sick of working liao. want to ORD! haha.

if not, every bonus only pay cash.

[therat 18]

Valuation Limit

depend when you brought the HDB.

I think the latest is 120%.

Mean.. eg.. you bought the HDB @$400k. So VL is $480k.

U only can use max $480k in ur CPF on that HDB. It include all expense.. like stamp fee, lawyer fee. Any $ that u use CPF to service that house.

I think I read somewhere before, someone did a est calculation. By est 25-26 yrs.. VL run out liao.

[snaem85 1]

never heard of VL before.

really alot of terminology to learn. :dribble:

[bepgof 20]

for 30 yr loan, valuation Limit will be hit at about 26th yr.

Meaning 27th-30th yrs' instalment have to be paid by CASH, no cpf.

never heard of VL before.

really alot of terminology to learn. :dribble:

[snaem85 1]

Wahhhh. cham liao.

May I ask.. If I pay a lump sum, what's e percentage paid towards principle and interest? Or all goes towards principle?

[therat 18]

Wahhhh. cham liao.

May I ask.. If I pay a lump sum, what's e percentage paid towards principle and interest? Or all goes towards principle?

all goes towards principle. B'coz this is not mthly installment.

Eg..

Outstanding loan is $200k

Then Ur 4D open 1st, tio $50k.

Then u use all $50k to pay your loan.

Hence your outstanding loan will be $200k - $50 k = $150k

Hence you either stay put on 30 yrs loan term, pay the lesses mthly installment

OR

U can choose pay the same mthly installment $ but shorter loan term.

[therat 18]

never heard of VL before.

really alot of terminology to learn. :dribble:

alot of ppl don't know had such thing and though so happy. got 30 yrs loan, 35 yrs loan.

Wait until it reach 25-26th yrs then they will know.

U go and ask around your friend, does anyone know what is their VL?

Do they know if they take 30 yrs loan, by 26th yr , VL will be running out and need to pay cash.

[Warrior88 0]

alot of ppl don't know had such thing and though so happy. got 30 yrs loan, 35 yrs loan.

Wait until it reach 25-26th yrs then they will know.

U go and ask around your friend, does anyone know what is their VL?

Do they know if they take 30 yrs loan, by 26th yr , VL will be running out and need to pay cash.

Rule change liao, if got minimum sum in OA+SA, can still use CPF.

http://mycpf.cpf.gov.sg/Members/HSG-Site/Hsg-AHWL.htm

[therat 18]

si ren tao.

3 day 2 night, change rule.

Job creation?

but still need to keep min sum component which keep on increasing yearly.

Ask a question:

How many of us already has min sum component?

[Warrior88 0]

si ren tao.

3 day 2 night, change rule.

Job creation?

but still need to keep min sum component which keep on increasing yearly.

Ask a question:

How many of us already has min sum component?

my 2nd hse, HDB is at 120VWL bought early last year year.

As for my 1st hse bought in 1999, 150VWL.

CPF also states that even if hit the VWL, so long MS is kept, can still continue using CPF for loan repayment. Even if OA is zero, can still use SA so long MS is kept.

Last time no MS, so high VWL ... 150%

MS increase every year, so VWL drop.

Reasons for this VWL, must keep for retirement.

But now got MS, so bottom line, if enough MS, can use OA & SA for loan installment.

Got 60 in SA, and 75 in SA investment. still working now, hopefully MS increase until 2013 do no exceed my monthly contributions.

By the way, still working out if there is a way to beat the "55 withdrawal rule"

Got loopholes or not. Looks like CPF lock and padlock you everwhere.

[stardust205 0]

I agree.. How many of us actually able to reach the Min Sum component, esp when govt keeps revising it upwards?!

Anyway, below is what I just copied from the CPF website, FAQ section:

Q: What happens if my HDB loan is still outstanding when my total CPF Withdrawals reach the Valuation Limit (VL)? Can I withdraw more of my CPF savings?

A: If your housing loan is still outstanding when the total CPF usage for the flat reached the VL and you are below the age of 55 years, you may continue to use your CPF Ordinary Account savings to repay the housing loan if you can set aside the prevailing Minimum Sum cash component. Savings in the Special Account (including the amount used for investments) and Ordinary Account can be used to meet the prevailing Minimum Sum cash component.

However, if you are 55 years and above when the VL is reached, you may use the excess CPF Ordinary Account savings to repay the housing loan after setting aside your Minimum Sum cash component shortfall.

si ren tao.

3 day 2 night, change rule.

Job creation?

but still need to keep min sum component which keep on increasing yearly.

Ask a question:

How many of us already has min sum component?

[stardust205 0]

Got. Emigrate

But Western Malaysia not counted. can't beat the system by just relocating to JB

Got 60 in SA, and 75 in SA investment. still working now, hopefully MS increase until 2013 do no exceed my monthly contributions.

By the way, still working out if there is a way to beat the "55 withdrawal rule"

Got loopholes or not. Looks like CPF lock and padlock you everwhere.

[Warrior88 0]

Got. Emigrate

But Western Malaysia not counted. can't beat the system by just relocating to JB

I am currently siphoning part of my CPF OA, through parent top up, they can get monthly cash. Cos if you are between the MS when you are 55, you get just a token of $5,000