Stamp duty reimbursement from CPF

[auroraborealis]

Is it true that stamp duty reimbursement can only be effected
after the 40% cash paid and at the start of the CPF monthly instalments being paid if the bank loan LTV is 60%?

"CPF Board will not release or reimburse stamp duty unless at least there is a lump sum release or CPF release for monthly instalments, which in this case, there is no lumpsum release." Is this true?

I thought can apply to CPF for reimbursement after paying in cash? How come need to wait till all 40% is paid?

[irisng]

Is it true that stamp duty reimbursement can only be effected
after the 40% cash paid and at the start of the CPF monthly instalments being paid if the bank loan LTV is 60%?

"CPF Board will not release or reimburse stamp duty unless at least there is a lump sum release or CPF release for monthly instalments, which in this case, there is no lumpsum release." Is this true?

I thought can apply to CPF for reimbursement after paying in cash? How come need to wait till all 40% is paid?

Previously, I have this problem too. My agent told me that I can reimburse the stamp duty from my CPF, but I waited for so long, still no reimbursemenet, so I checked with my lawyer and she told me that CPF interest rate is higher while the saving account interest rate is lower, so it is advisable not to reimburse unless you will be using your saving to generate higher interest but if I still want to reimburse from the CPF, do it before TOP. So I think it is better to check with your lawyer who handled your house.

[auroraborealis]

Actually the motivation came from the increasing minimum sum each year so more & more CPF monies is untouchable.

Our concern is that lawyer forgot to apply for us and just gave an excuse. In a prior transaction, we had no problem getting CPF to reimburse stamp duty prior to loan drawdown. Then, LTV was 70%. Tried to search the web for this rule but nothing came up =(

Previously, I have this problem too. My agent told me that I can reimburse the stamp duty from my CPF, but I waited for so long, still no reimbursemenet, so I checked with my lawyer and she told me that CPF interest rate is higher while the saving account interest rate is lower, so it is advisable not to reimburse unless you will be using your saving to generate higher interest but if I still want to reimburse from the CPF, do it before TOP. So I think it is better to check with your lawyer who handled your house.

[price]

Actually the motivation came from the increasing minimum sum each year so more & more CPF monies is untouchable.

Our concern is that lawyer forgot to apply for us and just gave an excuse. In a prior transaction, we had no problem getting CPF to reimburse stamp duty prior to loan drawdown. Then, LTV was 70%. Tried to search the web for this rule but nothing came up =(

Hi Auroraborelis, regarding ur question above, it is true that you have to exhaust all the cash component before utilising your CPF monies (including stamp duty rebates). Hence in your case, you will have to wait for your development (if BUC) to fully hit 40% and when bank loan has start to disburse before be able to utilise ur CPF.

[irisng]

Hi Auroraborelis, regarding ur question above, it is true that you have to exhaust all the cash component before utilising your CPF monies (including stamp duty rebates). Hence in your case, you will have to wait for your development (if BUC) to fully hit 40% and when bank loan has start to disburse before be able to utilise ur CPF.

I was thinking whether should I ask for reimbursement or not as my bank has already released the 1st disbursement. Any advise?

[price]

I was thinking whether should I ask for reimbursement or not as my bank has already released the 1st disbursement. Any advise?

Hi Irisng, I know of many parents when they hit a certain age and have no good use for excess money, "investing" in CPF @ 2.5% returns seems pretty good to them. However personally i'm against it. Well maybe because im younger and i would take the time to invest in other investment vehicles generating more than 2.5% rather than locking it up into my OA SA and MS. Hence yep, I would ask for a reimbursement. Take the money, bring ur kids for a holiday or smth?

[carbuncle]

Now this is something entirely new to me.... means for those projects bought with cpf and offering stamp duty reimbursements is it? and where u used cpf to pay upfront first the stamp duty?

[price]

Now this is something entirely new to me.... means for those projects bought with cpf and offering stamp duty reimbursements is it? and where u used cpf to pay upfront first the stamp duty?

uncle, u can never use CPF to pay SD upfront. You always have to pay SD with cash then subsequent to that you'll ask for a reimbursement from the CPF board. That can only happen after the CPF/Cash component is exhaust.

Seems like uncle is a cash rich person. Havent been paying with your CPF for awhile now?

[irisng]

Hi Irisng, I know of many parents when they hit a certain age and have no good use for excess money, "investing" in CPF @ 2.5% returns seems pretty good to them. However personally i'm against it. Well maybe because im younger and i would take the time to invest in other investment vehicles generating more than 2.5% rather than locking it up into my OA SA and MS. Hence yep, I would ask for a reimbursement. Take the money, bring ur kids for a holiday or smth?

Thank you for your advise. I was thinking for the reimbursement too especially when auroraborealis mentioned about the increase in min sum that strike my mind.

[price]

Thank you for your advise. I was thinking for the reimbursement too especially when auroraborealis mentioned about the increase in min sum that strike my mind.

Yea, it's not worth it. only OA part could be utilise to pay off or refinance ur loans. other parts are just gonna be locked up! If you take that into consideration, the money which could be used makes the 2.5% less attractive!

[carbuncle]

uncle, u can never use CPF to pay SD upfront. You always have to pay SD with cash then subsequent to that you'll ask for a reimbursement from the CPF board. That can only happen after the CPF/Cash component is exhaust.

Seems like uncle is a cash rich person. Havent been paying with your CPF for awhile now?

when I was still using cpf for investment purposes I think u were still drinking from milk bottle... kekeke long ago 空空liao

[price]

when I was still using cpf for investment purposes I think u were still drinking from milk bottle... kekeke long ago 空空liao

hahaha thats true actually. I'm glad my OA is 空空l now too

[irisng]

Yea, it's not worth it. only OA part could be utilise to pay off or refinance ur loans. other parts are just gonna be locked up! If you take that into consideration, the money which could be used makes the 2.5% less attractive!

Okay, I'll call my lawyer for the reimbursment on Monday. In fact, I did state that I want reimbusement from CPF when signing the S&A but don't know why, they never follow my instruction till I call them about the reimbursement, then they told me about the interest rate.

[auroraborealis]

Hi price, what is this "cpf/cash" component rule actually? Don't quite get it

uncle, u can never use CPF to pay SD upfront. You always have to pay SD with cash then subsequent to that you'll ask for a reimbursement from the CPF board. That can only happen after the CPF/Cash component is exhaust.

Seems like uncle is a cash rich person. Havent been paying with your CPF for awhile now?

[auroraborealis]

Yah... I think lawyers very reluctant to do cpf paper work. In your case, I think they'll charge u processing fee of $200. I think I'll end up like you. They die die refuse to apply... Then turn around n charge extra!!!

Okay, I'll call my lawyer for the reimbursment on Monday. In fact, I did state that I want reimbusement from CPF when signing the S&A but don't know why, they never follow my instruction till I call them about the reimbursement, then they told me about the interest rate.

[cnud]

Lawyers are quite a problem nowadays.

Where to go to complain against them?

[auroraborealis]

Actually, I transferred my cpf to get all all min sum in SA. Since min sum can't touch until retirement, n is retirement monies shld earn higher rate. Some friends think not worth to lock up in SA cos can't use for housing... But since subjected to min sum anyway... No diff to us whether in OA or SA

hahaha thats true actually. I'm glad my OA is 空空l now too

[irisng]

Yah... I think lawyers very reluctant to do cpf paper work. In your case, I think they'll charge u processing fee of $200. I think I'll end up like you. They die die refuse to apply... Then turn around n charge extra!!!

But they never tell me about the charges leh. When signing the S&A, she skipped that CPF reimbursement portion, luckily before that, my agent told me that I can reimburse back my SD, so I pointed out to my lawyer that I wanted to reimburse my SD, so no choice lor, she had to tick on the box. I will check with them on Monday to see any extra charges.

[price]

Hi price, what is this "cpf/cash" component rule actually? Don't quite get it

if u buy a one mil property, taking 500k loan 100k cpf 400k cash, cpf can be used only when u exhaust cash component of 400k. same for sd portion

[gadiny]

The relevant CPF clause that support Price's comment which was what my lawyer told me as well:

10.OTHER CONDITIONS FOR USE OF CPF SAVINGS a)The amounts approved for withdrawal can only be released when all the necessary documents required by the Board have been executed and the difference between the purchase price and the aggregate of the loan (if any) and CPF lumpsum approved for payment of the purchase price has been paid with the member's own funds.
http://mycpf.cpf.gov.sg/Members/Gen-...ermsAndCond.ht

Based on this clause, withdrawal of CPF for Stamp duties can be done only after member's own funds to cover difference fully exhausted.

[price]

The relevant CPF clause that support Price's comment which was what my lawyer told me as well:

10.OTHER CONDITIONS FOR USE OF CPF SAVINGS a)The amounts approved for withdrawal can only be released when all the necessary documents required by the Board have been executed and the difference between the purchase price and the aggregate of the loan (if any) and CPF lumpsum approved for payment of the purchase price has been paid with the member's own funds.
http://mycpf.cpf.gov.sg/Members/Gen-...ermsAndCond.ht

Based on this clause, withdrawal of CPF for Stamp duties can be done only after member's own funds to cover difference fully exhausted.

Thanks Gadiny, i guess everyone will have a clearer understanding now

[gadiny]

Hi price, no probelm . I learnt a lot from this forum as well.

To add, the 'CPF lumpsum approved for payment' is what you have currently in your OA at point when submission to CPF for withdrawal approval is made. Do not include future contributions.

Hope this clarifies. Cheers!

[auroraborealis]

Thanks all for the helpful explanations =)

We thought hard & finally managed recalled that:
The 1st time we applied only stamp duty refund from cpf w/o applying any monthly/lump sum. Thus the stamp duty reimbursement came thru. Subsequently, we decided to apply lump sum & monthly as well, thus incurring additional legal fee.

This time round we applied all at one go. Thus, caught under the above rule. Nt sure good or bad... Just have to live with it

[price]

Hi price, no probelm . I learnt a lot from this forum as well.

To add, the 'CPF lumpsum approved for payment' is what you have currently in your OA at point when submission to CPF for withdrawal approval is made. Do not include future contributions.

Hope this clarifies. Cheers!

Just wondering, If you CPF approved lump sum was awhile back and after probably like a year or more when u start paying the 10% (assuming you exhaust ur cash component only @ the foundation 10%) could u then apply for reimbursement on the CPF OA balance which is ur "future contribution"? Since u never had the additional sum (collected in the year while waiting for foundation) in the first place during approval.

[auroraborealis]

btw, the lawyer screwed up, reply from kind CPF officer here:

"We are pleased to inform that for properties under construction, members may apply for one-tme reimbursement of stamp duty paid not later than legal completion and this may be done before the withdrawal of lumpsum payment to the developers.
*
You may wish to instruct your lawyers to submit the payment request online for the reimbursement of stamp duty paid for your property."

[irisng]

btw, the lawyer screwed up, reply from kind CPF officer here:

"We are pleased to inform that for properties under construction, members may apply for one-tme reimbursement of stamp duty paid not later than legal completion and this may be done before the withdrawal of lumpsum payment to the developers.
*
You may wish to instruct your lawyers to submit the payment request online for the reimbursement of stamp duty paid for your property."

I had called up my lawyer and checked with her about the SD reimbursement and the legal fees, she said she will help me with the reimbursement and no legal fee involves. But already 1 week, still no news, wonder how long it will take.

[irisng]

Yesterday, received a letter from CPF about the approval of stamp duty. Now waiting for the money to be credited to my account only.

[cottonberry]

is it only the lawyers can do the reimbursement for us?

[auroraborealis]

Yep...........

is it only the lawyers can do the reimbursement for us?

[cottonberry]

i receive the below reply from my lawyer, can someone advise me on that?

"As the stamp fee on the Sale and Purchase Agreement ("S & P") is $10,560, we would advise that you do not apply for reimbursement at this time, in view that there can only be a one-time deduction of CPF monies for stamp fee reimbursement.You may instead wish to instruct us to apply at a later date after further CPF contributions have been made.

Do note that reimbursement must be made before legal completion which, under the S & P, is to take place no later than 1 July 2020 or 3 years after the delivery of vacant possession, whichever is earlier. It is possible for legal completion to take place several months before this latest date.

If you are agreeable, kindly let us have your instructions once the notice of vacant possession / TOP has been issued in order to allow us time to process your request."