expert in this field to answer any of your question

[happylalapo]

anyone out there have any question on pte pty will be glad to input my expert advise in this area

[JuJu]

How does it works if using CPF to buy condo?

[happylalapo]

Dear Juju


under the CPF ruling - we are able to use up to 100% of your CPF in the ordinary account for purchase of residential property.

Assuming you purchase a property at valuation. The bank grant you a loan of 90% for financing. You are not allowed to use your CPF for the first 10% of the purchase price. However you are able to use it for the remaining 90%.

Give you a senario;

Your purchase price $1,000,000
you are granted 90% financing from the bank
you will need to come out with 10% cash + legal + stamp duty
you can use whatever amount you have in your CPF ordinary account (amount to be decided by you) for the remaining 90%
say you have 10% in your CPF and you decide to use all the 10% in your CPF
You will effectively be getting a 80% financing from the bank


you can use your CPF to pay for your monthly instalment with the Bank, subject to a maximum of 150% of the value of your property.

Hope this answer to your question.

cheers

[HalcyonVI]

Solid advise hlp One correction though, for the minimum cash downpayment, it's now 5% of the property purchase price. Take a look at http://www.myhousingloan.com.sg/housing-loan-faq.php#p2.

[JuJu]

thanks for all the advise. does that means if the property value is $1m then i must come out with 5% cash (this is compulsory right) then the balance i get get bank loan (but again this depends on whether the bank wants to loan me the full balance of 95%). say if the bank only loans me 70% of the remaining 95%, can i use CPF to pay for balance 25%?

[happylalapo]

thanks for all the advise. does that means if the property value is $1m then i must come out with 5% cash (this is compulsory right) then the balance i get get bank loan (but again this depends on whether the bank wants to loan me the full balance of 95%). say if the bank only loans me 70% of the remaining 95%, can i use CPF to pay for balance 25%?

Ju ju

if the bank only loans you 70% you must come out with 30% cash + stamp fee and legal fee
you are not allow to use your CPF for the 25%

[JuJu]

thanks. reading back you did mentioned about cannot use CPF for the remaining. got it thanks.

[Ah Boy]

Hmm, happylalapo you sure you are expert? Beside the minimum 5% cash component, the rest can use CPF la

[JuJu]

hi ah boy, now i'm confused so going back to my question earlier, does that means i can use CPF for the balance 25%?

[happylalapo]

now i very baisei...... to call myself expert liao ha ! Ha! so i disappeared for a while..... Sorry Juju

Probably have confuse you on this matter.

we really do get good advise at this site.