Using CPF for private properties

[auroraborealis]

Did anyone noticed that the CPF website has changed? I used to be able to get info on the subject very easily, but nowadays very difficult (and not much revealed in the website) :(

Got into a discussion with a colleague who bot a property last year:
1) His LTV was 60%. My impression is that after the 1st 20%, can use part cpf and part cash for the next 10% (x2). But his lawyer told him only can use cpf for last 10% as he only has an amt close to 9.xx% at the moment. So that means 1st 30% cash then last 10% cpf.

Is his lawyer correct? I remembered otherwise lei... But that was a few years back:confused:

2) 50% of current min sum of 148k; I tot the amount is computed by OA+SA+Invested sum but his lawyer told him only OA+SA unless he sell his investments.

But I remember I researched on this b4 last time, and CPF website stated OA+SA+Invested sum at cost. But now, can no longer find this. :confused:

If you been through this recently, appreciate some insight :) thanks

[mermaid]

another qn.

lets say a person hv $60k in OA and 60K in SA. alrdy bought a 1st ppty.
after setting aside 50% of current min sum of 148k which is $74k, the bal $120k - $74K = $46k can be use to finance his 2nd ppty.

qn:
since one can use the whole OA to finance the 1st ppty, does tat means tat if he used the $46k on his 2nd ppty liao, he can still use the $60k - $46k = $14k on his 1st ppty?

Im raising tis doubt becos the rule is always taking abt 1st/2nd ppty and not 1 or 2 ppty :D

[princess_morbucks]

http://mycpf.cpf.gov.sg/CPF/my-cpf/buy-house/BH5.htm


You have to make a cash downpayment of at least 5% of the Valuation Limit (VL). You may refer to MAS website at www.mas.gov.sg for more information on the minimum cash downpayment that you have to pay. The VL is the lower of property price or property value at the time of purchase.

If you are buying an Executive Condominium and are eligible for the Housing Grant, you can use the grant to pay the downpayment beyond the required cash component of at least 5% of the VL when signing the Sale and Purchase Agreement.

You can use your CPF Ordinary Account savings and future monthly contributions to your CPF Ordinary Account to pay for the property and/or to service the monthly instalments on the housing loan.

If your housing loan is still outstanding when your total CPF used has reached the VL and,

you are below 55 years old, you may continue to use your CPF Ordinary Account savings up to the applicable Housing Withdrawal Limit to repay the housing loan after setting aside half of the prevailing Minimum Sum. Savings in the CPF Special Account (including the amount used for investments) and CPF Ordinary Account can be used to meet half of the prevailing Minimum Sum.
you are 55 years old and above, you may use your CPF Ordinary Account savings up to the applicable Housing Withdrawal Limit to repay the housing loan after setting aside your Required Minimum Sum cash component.

[PC08]

another qn.

lets say a person hv $60k in OA and 60K in SA. alrdy bought a 1st ppty.
after setting aside 50% of current min sum of 148k which is $74k, the bal $120k - $74K = $46k can be use to finance his 2nd ppty.

qn:
since one can use the whole OA to finance the 1st ppty, does tat means tat if he used the $46k on his 2nd ppty liao, he can still use the $60k - $46k = $14k on his 1st ppty?

Im raising tis doubt becos the rule is always taking abt 1st/2nd ppty and not 1 or 2 ppty :D

Yes, but you will need to use cash for prop #2 installments. However, if you intend to use CPF to pay for the 2nd prop installment, then 74k (OA+SA) has to be permanently available (amt to be revised every July).

It took me quite a while to collate and digest the pretty much scattered information.

If you have only 1 property, that will be your 1st. If you have more than 1 property, there will be an oldest purchase (1st purchase) and followed by the subsequent purchases (2nd and more). The terms used are pretty clear to me.

[mermaid]

However, if you intend to use CPF to pay for the 2nd prop installment, then 74k (OA+SA) has to be permanently available (amt to be revised every July).


actually the staff at cpf oso told me abt the 74k has to be there, but she like tink quite a while I tot mayb she is not very sure, hahaha :o



If you have only 1 property, that will be your 1st. If you have more than 1 property, there will be an oldest purchase (1st purchase) and followed by the subsequent purchases (2nd and more). The terms used are pretty clear to me.

precisely tat's the grey area. since 1st ppty can always use up all the bal in yr OA mah ... so after u used for yr 2nd one liao, u shd be able to cont'd to use wat is left over for yr 1st mah ....
the 74k shd be applied to the 2nd/ sub ppty, shdnt affect yr 1st one ....

[PC08]

actually the staff at cpf oso told me abt the 74k has to be there, but she like tink quite a while I tot mayb she is not very sure, hahaha :o



precisely tat's the grey area. since 1st ppty can always use up all the bal in yr OA mah ... so after u used for yr 2nd one liao, u shd be able to cont'd to use wat is left over for yr 1st mah ....
the 74k shd be applied to the 2nd/ sub ppty, shdnt affect yr 1st one ....

Yes, I think the CPF policy makers should create a comprehensive flowchart for their front desk officers. It is simple to do and just need to do it once to benefit everyone. If you put logic into play, 74k shd'nt affect 1st property, but will affect 2nd property. Unfortunately, not everyone has good logic to make good guesses or read between the lines correctly.

Sun Tzu states, if the orders from the general are not clear, it's the fault of the general. If the orders are clear, but the soldier didn't follow the orders, the soldier is at fault.

The 'quote' is off my head, should be something similar to the above.

[betterman1234]

Yes, I think the CPF policy makers should create a comprehensive flowchart for their front desk officers. It is simple to do and just need to do it once to benefit everyone. If you put logic into play, 74k shd'nt affect 1st property, but will affect 2nd property. Unfortunately, not everyone has good logic to make good guesses or read between the lines correctly.

Sun Tzu states, if the orders from the general are not clear, it's the fault of the general. If the orders are clear, but the soldier didn't follow the orders, the soldier is at fault.

The 'quote' is off my head, should be something similar to the above.

Does anyone know what will happen if SA reached the Minimum Sum which is $148K? Is there any SA Maximum ceiling ? Once SA account reached Minimum Sum,will our future Salary contribution or interest overflow to the OA account, like when the MA reached MA ceiling it will overflow to SA account. Anyone have SA reached $148K can enlighten me, thanks.

[NorthernStar]

My understanding is: once u activated CPF for 2nd property, the 50% of minimum amount should apply to ur OA+ SA accounts.

[radha08]

maybe website kena $%#&:D:D:D

[Shanhz]

another qn.

lets say a person hv $60k in OA and 60K in SA. alrdy bought a 1st ppty.
after setting aside 50% of current min sum of 148k which is $74k, the bal $120k - $74K = $46k can be use to finance his 2nd ppty.

qn:
since one can use the whole OA to finance the 1st ppty, does tat means tat if he used the $46k on his 2nd ppty liao, he can still use the $60k - $46k = $14k on his 1st ppty?

Im raising tis doubt becos the rule is always taking abt 1st/2nd ppty and not 1 or 2 ppty :D

this scenario applies to me. i used CPF for my hdb and my 2nd ppty (PC). so for the 2nd ppty, u can use whatever sums over and above the 74k combined in OA+SA.

[Tan80000]

Does anyone know what will happen if SA reached the Minimum Sum which is $148K? Is there any SA Maximum ceiling ? Once SA account reached Minimum Sum,will our future Salary contribution or interest overflow to the OA account, like when the MA reached MA ceiling it will overflow to SA account. Anyone have SA reached $148K can enlighten me, thanks.

When u SA above ceiling, the monthly contribution will still remain n the intetest still add into SA. :cheers4:

[PC08]

When u SA above ceiling, the monthly contribution will still remain n the intetest still add into SA. :cheers4:

What Tan is saying is SA has no ceiling.

[Tan80000]

What Tan is saying is SA has no ceiling.

Yup...but when SA above 148k. Balance from MA will flow to OA, including interest...

[minority]

Does anyone know what will happen if SA reached the Minimum Sum which is $148K? Is there any SA Maximum ceiling ? Once SA account reached Minimum Sum,will our future Salary contribution or interest overflow to the OA account, like when the MA reached MA ceiling it will overflow to SA account. Anyone have SA reached $148K can enlighten me, thanks.

once it hit the ceiling. the $ in SA get put back into OA.

[betterman1234]

once it hit the ceiling. the $ in SA get put back into OA.
This statement is very confusing ....PC08 and Tan80000 said SA got no ceiling...... Who is right??

[mermaid]

Im oso confused liao. I tot only medisave hv contribution ceiling? :confused:

medisave hit ceiling, tsf to SA. SA hit ceiling tsf to OA. govt where got so stupid one?

[betterman1234]

Im oso confused liao. I tot only medisave hv contribution ceiling? :confused:

medisave hit ceiling, tsf to SA. SA hit ceiling tsf to OA. govt where got so stupid one?

Seems like CPF department or someone with SA hits ceiling can clarify this statement...haha

[mermaid]

Seems like CPF department or someone with SA hits ceiling can clarify this statement...haha

it is not possible for SA to hv ceiling.
their intention is to lock yr $, OA can freely invest leh :doh:

they dun impose a ceiling on OA :scared-4: u steal laugh liao! ;)

[PC08]

Seems like CPF department or someone with SA hits ceiling can clarify this statement...haha

I thought it was very clear from Ah Tan and the other brother.

MA ceiling is 45500. Anything above will be thrown into SA. So lets say your cpf continues to grow until SA hits 148000. Excess MA will be thrown into OA instead, but SA contribution continues to jeep SA.

[betterman1234]

I thought it was very clear from Ah Tan and the other brother.

MA ceiling is 45500. Anything above will be thrown into SA. So lets say your cpf continues to grow until SA hits 148000. Excess MA will be thrown into OA instead, but SA contribution continues to jeep SA.

I think i agree with you, somebody confused me with his/her statement......

[minority]

This statement is very confusing ....PC08 and Tan80000 said SA got no ceiling...... Who is right??

my mistake. MA have ceiling. SA bo

[lionhill]

Experience tells me that the monthly CPF portion to SA will be very little if you have already had more than 100k in SA even if your SA has not reached the ceiling, making it very difficult to surpass the ceiling.

[betterman1234]

Experience tells me that the monthly CPF portion to SA will be very little if you have already had more than 100k in SA even if your SA has not reached the ceiling, making it very difficult to surpass the ceiling.
I thought if your SA reach 100K ,reaching the minimum sum ($148,800) is fairly easy.. 100k in SA x 4 % + 45.5K in MA x 4% = $5,820 interest into your SA yearly . Not forgetting the SA and MA interest are compounded . Interest + your monthly contribution put in your SA yearly , in no time your SA will reach the minimum sum .
By the way . there is no ceiling in SA as previously discussed . Another way is to do OA transfer or Cash Top Up into SA... So it is not difficult to reach the minimum sum if your SA already got 100k in it ....Lionhill , you already have more than 100k in your SA account.??... your experience tell you it is difficult to reach minimum sum??

[lionhill]

I thought if your SA reach 100K ,reaching the minimum sum ($148,800) is fairly easy.. 100k in SA x 4 % + 45.5K in MA x 4% = $5,820 interest into your SA yearly . Not forgetting the SA and MA interest are compounded . Interest + your monthly contribution put in your SA yearly , in no time your SA will reach the minimum sum .
By the way . there is no ceiling in SA as previously discussed . Another way is to do OA transfer or Cash Top Up into SA... So it is not difficult to reach the minimum sum if your SA already got 100k in it ....Lionhill , you already have more than 100k in your SA account.??... your experience tell you it is difficult to reach minimum sum??
Hi, I topped my SA a few years ago. But I noticed that the amount in my SA increases very slow as only quite a little of my monthly contribution is credit to SA since then. Therefore, I guess the ratio of amount distributed to OA and SA is not fixed. it will be adjusted based on the amount in you SA.

[auroraborealis]

Yes, the Board requires members to pay the cash difference before CPF monies can be released towards the purchase of a property. The cash difference is the purchase price less housing loan less the lump sum payment to the seller from your Ordinary Account.

Using an example:

(a) Purchase price of your property is $1,000,000
(b) Housing loan to be taken is $600,000(60% of the purchase price)
(c) Your current available Ordinary Accounts savings for housing withdrawal is $100,000
(d) Sum paid to developer as todate is $200,000(initial 20% downpayment)

Your cash difference will therefore be ($1,000,000 - $600,000 - $100,000) = $300,000. You will need to pay this balance cash difference of $300,000 ($400,000 - $100,000) before the $100,000 of CPF monies can be released for the purchase of your property.

[NorthernStar]

the contribution rate between OA/SA/MA depending on your age..
http://mycpf.cpf.gov.sg/Members/Gen-Info/Con-Rates/ContriRa.htm

MA has the maximum cap.

[lionhill]

the contribution rate between OA/SA/MA depending on your age..
http://mycpf.cpf.gov.sg/Members/Gen-Info/Con-Rates/ContriRa.htm

MA has the maximum cap.

thanks a lot for the verification. I checked my CPF account just now.

Yes, you are right, the rate is fixed.

Actually, th absolute amount to my SA is not small, compared to that to my OA (it seems the amount over the MA ceiling will be spilled over to SA).
It is only my misconception due to my greediness to hope the amount in my SA grows fast.

[djam7773]

Hi all,

Can we also use our OA to reduce existing loan when it comes to refinancing ie. for example put in 20k from OA to reduce principle? possible to do it w/o achieving min. sum?

Thanks,
Jam