Financing an EC

[fisho]

The following is an excerpt from a reply from HDB to my queries on purchasing a new EC apartment.

"Have an outstanding housing loan (whether from HDB or bank) at the point of application for a bank loan to finance the EC purchase

1. Out of the 15% downpayment you need to pay within 8 weeks from the date of the Option To Purchase, you have to pay 5% in cash.

2. You may pay the balance 10% using your CPF savings and CPF Housing Grant (if eligible).

3. In addition, your maximum loan ceiling is capped at 60%."

Can anyone advise me on when is the balance 20% usually paid, CPF or Cash?

Thanks
Fisho

[curio]

For usage of CPF, there is a limit that u cannot use if CPF is used to finance more than 1 property, u can check with CPF board on this as they will raise the limit every Jul. So, likelihood u hv to pay bal using cash

[Judas]

For 2nd property, you required to have sufficient CPF for minimum sum (half in CPF, and half in property) before utilising the balance for 2nd property. Not sure if applicable to EC.

[Judas]

Q:I own a HDB flat (or private property) and intend to purchase a private property under RPS after 1 July 2006. However, I intend to sell my existing HDB flat (or private property). Do I need to set aside half of the prevailing Minimum Sum before I can use my CPF?
[ Owning A Property > Residential Properties Scheme (RPS) > Use of CPF to Purchase Multiple Properties under RPS ] A:If you intend to sell your existing HDB flat (or private property), the Board will grant you a grace period for you to sell off your existing HDB flat (or private property). During the grace period, you do not need to set aside half of the prevailing Minimum Sum before using your CPF Ordinary Account savings for the purchase of the second/subsequent property. The grace period is as follows:
(i) If you are buying a completed property – you will be given a grace period of six months from the completion of purchase of the second/subsequent property to sell off your existing HDB flat (or private property); or
(ii) If you are buying a property still under construction – you will be given a grace period of six months from the issuance of Temporary Occupation Permit (TOP) to sell off your existing HDB flat (or private property).
If your existing HDB flat (or private property) is not sold after the grace period, we will stop further withdrawals for your second/subsequent property purchased, if you do not have half of the prevailing Minimum Sum in your Special Account (including the amount used for investments) and Ordinary Account.

[ysyap]

If your EC is still under construction, you will disburse the remaining 20% according to the schedule of the work in progress by the contractor. Can't remember the disbursement amount but its like completion of ceiling then 5%, completion of walls, another 5% or something. You will finish paying all 20% before the bank will release the loan amount and you'll start servicing your mortgage bank loan. Today, the minimum sum required in the cpf ordinary and special account is $61 500 (total) subjected to upward change come 01 July. I believe a banker at the EC launch can explain more.

However if your EC is already completed, then payment of remaining 20% must be paid before bank release the remaining 60%. In this case, you can call any bank to inquire more.

[fisho]

Thank you Mr Yap.

Cheers

[Teana]

If your EC is still under construction, you will disburse the remaining 20% according to the schedule of the work in progress by the contractor. Can't remember the disbursement amount but its like completion of ceiling then 5%, completion of walls, another 5% or something. You will finish paying all 20% before the bank will release the loan amount and you'll start servicing your mortgage bank loan. Today, the minimum sum required in the cpf ordinary and special account is $61 500 (total) subjected to upward change come 01 July. I believe a banker at the EC launch can explain more.

However if your EC is already completed, then payment of remaining 20% must be paid before bank release the remaining 60%. In this case, you can call any bank to inquire more.
Not correct.

5% booking fee in cash.

15% from CPF (including $30,000 grant), 8 weeks from the date the OTP is signed. You may use cash to supplement if CPF is insufficient.

After that, bank loan will kick in according to the schdule of the work in progress.

[ysyap]

Not correct.

5% booking fee in cash.

15% from CPF (including $30,000 grant), 8 weeks from the date the OTP is signed. You may use cash to supplement if CPF is insufficient.

After that, bank loan will kick in according to the schdule of the work in progress.

What you are saying is the first 20% (5 + 15 for BUC and 1 + 4 + 15 for resale). I was referring to the second 20%. :cool-punk-headbange