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Thread: CPF for loan repayment

  1. #1
    Join Date
    Mar 2009
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    Default CPF for loan repayment

    After the option to purchase (5%, by cash), the remaining sale and purchase agreement (15%) can be paid by CPF & cash.

    So is it that I just instruct my lawyer to use CPF (after setting aside the min sum cash component), that is all right ?
    will it take long since the S&P must be done within 8 weeks ?

    Any balance, as well as stamp duty will have to be pay by cash.

    any advice or information welcome...

  2. #2
    Join Date
    Feb 2009
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    峨眉山
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    Default

    Your understanding is right on the dot. For more info, http://www.propnex.com/buyersguide.aspx

  3. #3
    Join Date
    Apr 2009
    Posts
    407

    Default

    Quote Originally Posted by marktkt22
    After the option to purchase (5%, by cash), the remaining sale and purchase agreement (15%) can be paid by CPF & cash.

    So is it that I just instruct my lawyer to use CPF (after setting aside the min sum cash component), that is all right ?
    will it take long since the S&P must be done within 8 weeks ?

    Any balance, as well as stamp duty will have to be pay by cash.

    any advice or information welcome...
    if there is no problem with your lawyer or cpf (eg; minimum sum, etc), the cpf will send letter of approve within 2 weeks upon write in by your lawyer.

    and for example: if your 15% is 150000 and duty is 25100 amount to 175100 and you have only 100000 in cpf, you may want to instruct your lawyer to use 100000 cpf as lumpsum, 50000 cash as lumpsum and 25100 cash as duty.

    thats because nowsaday the duty refund is slow and u might as well use cash and divert cpf to lumpsum. above mentioned exclude legal cost.

  4. #4
    Join Date
    Apr 2009
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    923

    Default

    Quote Originally Posted by apple3
    if there is no problem with your lawyer or cpf (eg; minimum sum, etc), the cpf will send letter of approve within 2 weeks upon write in by your lawyer.

    and for example: if your 15% is 150000 and duty is 25100 amount to 175100 and you have only 100000 in cpf, you may want to instruct your lawyer to use 100000 cpf as lumpsum, 50000 cash as lumpsum and 25100 cash as duty.

    thats because nowsaday the duty refund is slow and u might as well use cash and divert cpf to lumpsum. above mentioned exclude legal cost.
    Legal cost usually included/absorbed by bank. If not, negotiate or ask for it. Good advice.

  5. #5
    Join Date
    Mar 2009
    Posts
    828

    Default

    Thanks to all for the feedback. yes, legal provided by bank where I take the loan.

    I also heard and read from the forum that reimbursement of stamp duty by CPF is very slow.
    I will pay stamp duty by cash, and use CPF for loan.
    Any outstanding, use cash to cover. Thanks to all again !

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