HL instalment repayment via CPF

[KarenK]

Hi

I have a HL pegged to 3-mth SOR. Every 3 mths, the bank will send me a letter to inform me of the new rate & instalment amt. Assuming that my monthly CPF contribution is still sufficient to service the revised instalment amts, do I have to go to the CPF website to change the CPF deduction amt?

For eg:
CPF mthly contribution to OA: $900
HL instalment (June): $300
HL instalment (Sep) : $500
assuming that the instalments have been smoothly deducted from my OA for $300 every month from June, do I have to go to the CPF website to change the deduction amount from Sep onwards even though my CPF mthly contribution is enough to cover it?

I am asking this question coz it seems like the bank has been deducting the higher amt from my bank a/c instead of CPF a/c

[samsara]

Hi Karen,

You will need to log into your online CPF account using your Singpass and then authorise CPF to change the withdrawal limit in the e-Services section.

Hope this helps.

Hi

I have a HL pegged to 3-mth SOR. Every 3 mths, the bank will send me a letter to inform me of the new rate & instalment amt. Assuming that my monthly CPF contribution is still sufficient to service the revised instalment amts, do I have to go to the CPF website to change the CPF deduction amt?

For eg:
CPF mthly contribution to OA: $900
HL instalment (June): $300
HL instalment (Sep) : $500
assuming that the instalments have been smoothly deducted from my OA for $300 every month from June, do I have to go to the CPF website to change the deduction amount from Sep onwards even though my CPF mthly contribution is enough to cover it?

I am asking this question coz it seems like the bank has been deducting the higher amt from my bank a/c instead of CPF a/c

[isaaclim]

Hi

I have a HL pegged to 3-mth SOR. Every 3 mths, the bank will send me a letter to inform me of the new rate & instalment amt. Assuming that my monthly CPF contribution is still sufficient to service the revised instalment amts, do I have to go to the CPF website to change the CPF deduction amt?

For eg:
CPF mthly contribution to OA: $900
HL instalment (June): $300
HL instalment (Sep) : $500
assuming that the instalments have been smoothly deducted from my OA for $300 every month from June, do I have to go to the CPF website to change the deduction amount from Sep onwards even though my CPF mthly contribution is enough to cover it?

I am asking this question coz it seems like the bank has been deducting the higher amt from my bank a/c instead of CPF a/c

Yes of course. Isn't it your bank send you the form together with the advise of the new rate???!

[2824]

The bank will do 2 sweeps, first sweep CPF account, second sweep if required for a shortfall will be from the bank account.

Just thinking, what happens if the scenario was reversed and the amount from CPF is greater than the mthly instalment, will the excess be considered additional principal repayment? cos i was told that there is a minimum sum for lump sum principal repayment.

Hi

I have a HL pegged to 3-mth SOR. Every 3 mths, the bank will send me a letter to inform me of the new rate & instalment amt. Assuming that my monthly CPF contribution is still sufficient to service the revised instalment amts, do I have to go to the CPF website to change the CPF deduction amt?

For eg:
CPF mthly contribution to OA: $900
HL instalment (June): $300
HL instalment (Sep) : $500
assuming that the instalments have been smoothly deducted from my OA for $300 every month from June, do I have to go to the CPF website to change the deduction amount from Sep onwards even though my CPF mthly contribution is enough to cover it?

I am asking this question coz it seems like the bank has been deducting the higher amt from my bank a/c instead of CPF a/c

[cashrich]

Hi

I have a HL pegged to 3-mth SOR. Every 3 mths, the bank will send me a letter to inform me of the new rate & instalment amt. Assuming that my monthly CPF contribution is still sufficient to service the revised instalment amts, do I have to go to the CPF website to change the CPF deduction amt?

For eg:
CPF mthly contribution to OA: $900
HL instalment (June): $300
HL instalment (Sep) : $500
assuming that the instalments have been smoothly deducted from my OA for $300 every month from June, do I have to go to the CPF website to change the deduction amount from Sep onwards even though my CPF mthly contribution is enough to cover it?

I am asking this question coz it seems like the bank has been deducting the higher amt from my bank a/c instead of CPF a/c

The bank will deduct any shortfall from your bank account (Cash)

You can update the amount their CPF online -> e-services. Just make sure that the amount is EXACT to save trouble.

The same thing goes, if your CPF not enough.. cash is required.

CPF and Cash.. Just like husband and wife, both the same in servicing the mortgage. Enough CPF use CPF, enough Cash use Cash. Both NOT enough? Use what?

[KarenK]

Hi everybody

thanks for your advice and info! it's certainly useful

cheers

[cashrich]

Hi everybody

thanks for your advice and info! it's certainly useful

cheers

no worries.. I once know a lady by name of Karen Kee @ pacific net . R u the one?

[cher]

The bank will do 2 sweeps, first sweep CPF account, second sweep if required for a shortfall will be from the bank account.

Just thinking, what happens if the scenario was reversed and the amount from CPF is greater than the mthly instalment, will the excess be considered additional principal repayment? cos i was told that there is a minimum sum for lump sum principal repayment.

No worries if the amount deducted from your CPF account is greater than the installment amount, CPFwill refund it back to your OA account. For me I prefer to do it this way rather than changing the deducted amount every 3 months when the interest rate change.

[KarenK]

no worries.. I once know a lady by name of Karen Kee @ pacific net . R u the one?

sorry, no. the second K is my hubby's surname. when i was registering for this forum, I tried all permutations of my name for the userID without success until I nearly gave up...

[KarenK]

No worries if the amount deducted from your CPF account is greater than the installment amount, CPFwill refund it back to your OA account. For me I prefer to do it this way rather than changing the deducted amount every 3 months when the interest rate change.

I was thinking of the exact same idea too. how fast does CPF refund the amt? few days after the deduction? are they accurate in ascertaining that they have over-deducted?

[taggy]

No worries if the amount deducted from your CPF account is greater than the installment amount, CPFwill refund it back to your OA account. For me I prefer to do it this way rather than changing the deducted amount every 3 months when the interest rate change.

er... i was with Standchart homeloan...

i remember when the CPF deduction is bigger than the monthly installment... the loan statement will show "CPF EXCESS − PRIN REDUCTION"... for my case it went to deduct the principle...

But i didnt figure out is there interest/fee charge for this small principle deduction...

Now i m with citibank...
I havent tried to do this (cpf deduction set greater than installment)...
because the banker warned me before that citibank practise is, the bank will hold this excess is some account, will not deduct the principle, and must wait for dun noe how long then will be refund back....

So, maybe different bank practise differently?
And other forumers can share?