How Much Cpf Money Is Used? Wiped Out Totally?

[3Dyms 1]

Hi all,

Need some advise from the gurus here. I'm going to purchase a resale HDB flat and have quite a tidy sum in my OA account.

Can I check.... When I go to HDB for the appointment, will HDB wipe out all my CPF savings from OA account on the spot and leave me with 0 balance? I'm using bank loan.

Or... Will HDB only take 15% of loan amount (for down payment) from my CPF. Theareafter, I can decide whether to use more CPF $$$ towards the purchase amount or.. Use the balance CPF OA $$$ for monthly servicing of the home loan?

Please help advise as I've been checking whole HDB & CPF website and cannot find a straightforward answer. I'm very confused now. Thanks.

[Batman 0]

The best person to answer you will be your banker.

From what I know, you can decide whether to wipe out or not. I would advice you not to wipe out. This is because in the unlikely event

that you run into some financial difficulties, at least you can still use your CPF to service the loan and preserve your cash on hand.

Good luck in your purchase bro

[3Dyms 1]

The best person to answer you will be your banker.

From what I know, you can decide whether to wipe out or not. I would advice you not to wipe out. This is because in the unlikely event

that you run into some financial difficulties, at least you can still use your CPF to service the loan and preserve your cash on hand.

Good luck in your purchase bro

Thanks for your reply. It will be great if no need to wipe out as I want to keep a balance sum in my CPF to help cushion my monthly loan repayments.

So on the First Appointment with HDB, I should let the HDB officer know how much CPF to deduct right? For example, only deduct the15% for down payment. Balance of CPF savings in OA- do not touch. Correct?

Appreciate your kind advises.

[yaolong 0]

Thanks for your reply. It will be great if no need to wipe out as I want to keep a balance sum in my CPF to help cushion my monthly loan repayments.

So on the First Appointment with HDB, I should let the HDB officer know how much CPF to deduct right? For example, only deduct the15% for down payment. Balance of CPF savings in OA- do not touch. Correct?

Appreciate your kind advises.

i also took bank loan. i remembered i did not tell the hdb officer whether to wipe out and also i did not tell the law firm who handled the transaction.

my reason for keeping the sum in OA was in the event of retrenchment, the sum in OA can service the loan while i look for a job.

another method is to invest whatever amount u wanted to keep for servicing of loan b4 the hdb appointment and lock that amount in investment.

even if hdb wipe out the balance, u can withdraw the investment n used for servicing of loan.

[3Dyms 1]

i also took bank loan. i remembered i did not tell the hdb officer whether to wipe out and also i did not tell the law firm who handled the transaction.

my reason for keeping the sum in OA was in the event of retrenchment, the sum in OA can service the loan while i look for a job.

another method is to invest whatever amount u wanted to keep for servicing of loan b4 the hdb appointment and lock that amount in investment.

even if hdb wipe out the balance, u can withdraw the investment n used for servicing of loan.

Thanks for your reply. Good idea on investing the amount I want to keep as cushion first. Then I'll hv back-up in case HDB wipe out the balance.

I totally agree.... I'd rather have a 'stand-by' sum in my OA for 'just in case' scenarios. That's my main concern too.

Another quick question,

What are the monies I need to stand-by for First Appointment? Stamp Duty? Legal Fees? 5% cash for down payment?

Cos my current unit (already sold) is estimated to have legal completion by 12/April. But I'm hoping to do my First Appointment for my resale HDB at end of march. 2nd appointment will be 6-8 weeks thereafter. I scared not yet received my sales proceeds (from current unit) and will kana stuck if I go for First Appointment too early. Should I wait till legal completion of my current unit is settled and all $$$ received before I go for First Appointment? I'm hoping to settle everything fast and get Reno done & shift in to new place before lunar 7th month.

Thanks.

[therat 18]

Thanks for your reply. Good idea on investing the amount I want to keep as cushion first. Then I'll hv back-up in case HDB wipe out the balance.

I totally agree.... I'd rather have a 'stand-by' sum in my OA for 'just in case' scenarios. That's my main concern too.

Another quick question,

What are the monies I need to stand-by for First Appointment? Stamp Duty? Legal Fees? 5% cash for down payment?

Cos my current unit (already sold) is estimated to have legal completion by 12/April. But I'm hoping to do my First Appointment for my resale HDB at end of march. 2nd appointment will be 6-8 weeks thereafter. I scared not yet received my sales proceeds (from current unit) and will kana stuck if I go for First Appointment too early. Should I wait till legal completion of my current unit is settled and all $$$ received before I go for First Appointment? I'm hoping to settle everything fast and get Reno done & shift in to new place before lunar 7th month.

Thanks.

Your property agent should advice you on this.

Isn't that their job?

As for the bank loan, base on my understanding, HDB will not clean up your OA account. BUT since you are selling and buying.

HDB will clear up 50% of your profit gain (cash or CPF)

http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/BuyResaleFlatAppt?OpenDocument

First Appointment

Finalise Buyer’s Resale Financial Plan

If you are taking a bank loan, the HDB Customer Service Manager will only verify the amount of mortgage loan you are taking from the bank. The bank's lawyer who is acting for your purchase will advise you on the amount of conveyancing fees payable and when to make the various payments.

Documents buyer needs to bring for First Appointment

Buyer will need to bring:

Original Identity Card of buyer(s) or Passport in absence of Identity card, along with 1 photocopy

HDB Loan Eligibility Letter/Letter of Offer from Bank

Income documents for assessment of income ceiling if taking the CPF Housing Grant

Income documents for assessment of income ceiling if taking the Additional CPF Housing Grant (AHG)

Latest Pay slips if taking an HDB loan

Power of Attorney, if applicable

Original Buyer's Resale Checklist

Lasting Power of Attorney (LPA), if applicable

Completion Appointment (Second Appointment)

The completion appointment for the purchase/sale of the resale flat (commonly known as the "second appointment") is scheduled about six to eight weeks from the date of the first appointment.

Purpose of Completion Appointment

The Completion Appointment is for the HDB to witness

The signing of the transfer document by the seller of the resale flat

The signing of the mortgage document/agreement by the buyer (if buyer is taking an HDB loan)

The handing over of the keys from the seller to the buyer (or to the buyer's lawyer if the buyer took a bank loan and engaged the bank's lawyer to act for the purchase) after:

The buyer confirms that the flat has been vacated and the conditions are acceptable (buyer should arrange for a final inspection of the flat with the seller before the date of completion)

The seller has paid the service and conservancy charges and property tax up to date and are able to produce the official receipts

What Buyer Should Do Before the Completion Appointment

1 Inspect the flat

You will have to ensure that the flat is vacant and the physical condition is acceptable before you take possession of the resale flat

2 Buy Fire Insurance

If you are taking an HDB loan, you will have to buy a Fire Insurance from the HDB’s appointed insurer, ETIQA, at Toa Payoh HDB Hub, Atrium 2nd storey, Fire Insurance Counter with the resale completion appointment letter. You can buy the Fire Insurance on the day of the completion appointment and produce the receipt for the payment to the resale Customer Service Manager during the completion appointment.

ETIQA Insurance Berhad(ETIQA) is the appointed insurer. For more details about the HDB Fire Insurance, you may call ETIQA's enquiry line 6331 9253 or visit ETIQA's website.

Payment to be made by Buyers during the Completion Appointment

If you are taking an HDB loan, you must pay the balance of the resale price of the flat, if any, on the date of the completion of the resale flat purchase. The payment has to be made in cash or Cashier’s Order to the Payment Office at Level 3, HDB Hub.

[May_dream1 14]

bank loan would required 5% cash so you can take 80% loan then will only take 15% from your CPF. For me, i took 75% loan with 5% cash, so i use 20% from cpf. its up to you, as you are taking bank loan. only wipe out if you taking hdb loan.

you paying agent fees and lawyer fees, so your agent and lawyer best person for you to know more details as they will know the actual transaction you are doing. ie, how much loan you can get, how much you have in cpf, what is the COV, the date of 1st appt and 2nd appt etc. what you are telling us are too superficial for us to advise in details.

[3Dyms 1]

Thanks for all replies. I'm doing the paperwork myself so no agent to call. Even my agent friends not really sure cos they do mostly private transactions. That one is much easier & more straightforward then HDB.

Anyway, I've already called HDB, CPF, Banker & Lawyer & got all the required answers.

Just for sharing purpose:

1) CPF savings - this is only wiped out if you are using HDB Concessionary loan. If using bank loan, you will need to use minimum 15% of the loan amount (for down payment). Thereafter, you can decide if you want to use more CPF savings to lessen the bank loan. Or you can keep your balance CPF in your OA account for loan servicing.

2) Bank Loan for HDB Resale : payment of the various things like 5% cash + 15% CPF + COV + Legal fee... Etc... All these are dependent on the bank lawyers. You need to discuss with them on your preferred timing to make these payments. Such things need to be discussed with your lawyer & banker and all must be agreeable. There is no hard & fast rules stipulated by HDB on these deductions.

For example, in my case, I'm only settling the Stamp Duty (via CPF) on the First Appointment. All the others will only be settled on the Second Appointment. This is because the sales proceeds from my current unit will only be coming in after the First Appointment, but before the Second Appointment.

Thanks.

[accidentalgenius 2]

My 2 cents

Given that bank interest rates are hovering around 1.5% and CPF OA returns 2.5%, it is wiser to just take the maximum bank loan and keep your CPF OA monies. When bank interest rates get higher than 2.5%, use all your CPF to do partial repayment of the bank loan.

[bepgof 20]

My 2 cents

Given that bank interest rates are hovering around 1.5% and CPF OA returns 2.5%, it is wiser to just take the maximum bank loan and keep your CPF OA monies. When bank interest rates get higher than 2.5%, use all your CPF to do partial repayment of the bank loan.

My 2 cents

Given that bank interest rates are hovering around 1.5% and CPF OA returns 2.5%, it is wiser to just take the maximum bank loan and keep your CPF OA monies. When bank interest rates get higher than 2.5%, use all your CPF to do partial repayment of the bank loan.

[VVV 3]

to prevent CPF OA from wiping out if taking HDB loan, just open an broking account and buy some stocks or bonds or pref shares in the market under CPF first.

[gemini 8]

My 2 cents

Given that bank interest rates are hovering around 1.5% and CPF OA returns 2.5%, it is wiser to just take the maximum bank loan and keep your CPF OA monies. When bank interest rates get higher than 2.5%, use all your CPF to do partial repayment of the bank loan.

This is provided the bank loan agreement permits early repayment and there is no penalty for early repayment.

[bepgof 20]

This is provided the bank loan agreement permits early repayment and there is no penalty for early repayment.

Some packages with lock-in period, meaning no partial repayment allowed within stipulated period.

Partial repayment usually done in multiple of 5K.

Some may allow only 1 time partial lump sum repayment within the package period.....so read and ask carefully.

[ohseolki 0]

Anyone know.. if taking HDB loan, and what if main applicant and co-applicant CPF OA account balance are wiped off during the collection of keys(BTO), how they going to repay the monthly HDB loan after that when the account is 0 balance. Helping my young couple friends to ask... because they have little OA sum, not enough to buy stock/bond to backup the $$.

Can anyone help?