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taeyeon
08-04-14, 16:11
Hello experts,
Need to seek advice as I have googled to no avail.
1) I have a joint property purchase w my wife. Took a bank loan and servicing monthly thru CPF.
2) If I purchase a 2nd pvte property w my wife we wile be subjected to ABSD. Can we use what we have remaining in our OA to pay for the ABSD?
3) Does the setting aside of 50% of minimum sum apply to the use of CPF in paying ABSD?

Thanks in advance.
NorthernStar
08-04-14, 16:42
Hello experts,
Need to seek advice as I have googled to no avail.
1) I have a joint property purchase w my wife. Took a bank loan and servicing monthly thru CPF.
2) If I purchase a 2nd pvte property w my wife we wile be subjected to ABSD. Can we use what we have remaining in our OA to pay for the ABSD?
3) Does the setting aside of 50% of minimum sum apply to the use of CPF in paying ABSD?

Thanks in advance.

2. Yes.. you can use CPF to pay ABSD with condition that you also use CPF to purchase the unit

3. I guess yes since this is your 2nd property and CPF stated that you must use CPF to purchase the say property before you can use CPF to pay the ABSD. However, you better call CPF to confirm.
taeyeon
08-04-14, 17:02
2. Yes.. you can use CPF to pay ABSD with condition that you also use CPF to purchase the unit

3. I guess yes since this is your 2nd property and CPF stated that you must use CPF to purchase the say property before you can use CPF to pay the ABSD. However, you better call CPF to confirm.

I cant seem to find the condition that I must use CPF to purchase the unit in order to use it for ABSD. Did you sight this on CPF website?
Kelonguni
08-04-14, 17:09
[QUOTE=taeyeon;472090]I cant seem to find the condition that I must use CPF to purchase the unit in order to use it for ABSD. Did you sight this on CPF website?[/QUOTE Can I pay Stamp Duty using my CPF funds?

Using CPF funds to pay Stamp Duty (including ABSD) is subject to terms and conditions under the Private Properties and Public Housing Schemes. To find out if you can use your CPF to pay Stamp Duty, you can visit www.cpf.gov.sg or call CPF on 1800-227 1188 (Mondays to Fridays 8:00 am - 5:30 pm).

From IRAS website
NorthernStar
08-04-14, 17:11
I cant seem to find the condition that I must use CPF to purchase the unit in order to use it for ABSD. Did you sight this on CPF website?

http://mycpf.cpf.gov.sg/NR/rdonlyres/37BE3704-4E20-4109-8050-132BA17D9A0A/0/UseofCPFunderPPS.pdf

see the statement below.. this is how i interpret it since ABSD is a stamp duty.

Q: Can I use my special account to pay for a private house's stamp fees?

A: The Special Account is meant to help members build up sufficient cash savings for old age. Hence, you cannot use your CPF Special Account savings to pay for stamp fees related to the property purchase. You may only use your CPF Ordinary Account savings to pay for the stamp fees, provided that you are also using your CPF to buy
the property (ie. to make direct payment to the property developer or vendor, or to repay the housing loan taken).
taeyeon
08-04-14, 17:17
http://mycpf.cpf.gov.sg/NR/rdonlyres/37BE3704-4E20-4109-8050-132BA17D9A0A/0/UseofCPFunderPPS.pdf

see the statement below.. this is how i interpret it since ABSD is a stamp duty.

Q: Can I use my special account to pay for a private house's stamp fees?

A: The Special Account is meant to help members build up sufficient cash savings for old age. Hence, you cannot use your CPF Special Account savings to pay for stamp fees related to the property purchase. You may only use your CPF Ordinary Account savings to pay for the stamp fees, provided that you are also using your CPF to buy
the property (ie. to make direct payment to the property developer or vendor, or to repay the housing loan taken).

perfect u are of great help.
what if my spouse does not fufill the 50% minimum sum while i do? can i just use my own cpf to pay for the property and stamp duties? does it mean if the balance already hit 50% of minimum sum i will not be able to use it for stamp duties?
Kelonguni
08-04-14, 17:24
perfect u are of great help.
what if my spouse does not fufill the 50% minimum sum while i do? can use my own cpf to pay for the property and stamp duties? does it mean if the balance already hit 50% of minimum sum i will not be able to use it for stamp duties?

Minimum sum can be from Ordinary Account plus Special Account. Currently half of MS is 74k. If you have less than half of minimum sum cannot withdraw anymore.

Take note that MS will rise every year quite regularly.
chantl
08-04-14, 17:25
i tot you must pay up all the outstanding loan for the first property before you can utilize your OA to pay for 2nd property?
taggy
08-04-14, 18:15
i tot you must pay up all the outstanding loan for the first property before you can utilize your OA to pay for 2nd property?

No, u can use cpf to service 2 home loans concurrently.
Reisor
09-04-14, 05:56
No, u can use cpf to service 2 home loans concurrently.

This seems to be a possible CM## if the last one had not work. :doh:
Laguna
09-04-14, 06:44
you should look into decoupling the title to the first property.
this will have a very substantial saving over paying of ABSD.

PM me if needed