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Thread: HDB 1st Apointment

  1. #1
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    Default HDB 1st Apointment

    Harlow!

    HDB first appointment need to pay 5% of the HDB purchase price (minus off the $1000 OTP deposit) + COV + legal fees, correct?

  2. #2
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    You actually need to pay 10% of the purchase price (minus the OTP deposit) at the HDB first appointment.

  3. #3
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    Thanks you!! What about the payment schedule har? When need to pay stamp fees, COV, lawyer?? And anything else?

  4. #4
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    Quote Originally Posted by McMuffin View Post
    You actually need to pay 10% of the purchase price (minus the OTP deposit) at the HDB first appointment.
    Yes and no... let me try to summarise the confusing HDB rules in the subsequent post.

  5. #5
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    The payment required at or around the HDB 1st appointment is actually quite complicated. It's so confusing that different HDB phone operators can tell you different things

    Starting with the simpler bits, the property stamp fees and conveyancing (legal) fees has to be paid on the day of the HDB 1st appointment or within 10 days from the date of 1st appointment. These can be paid using cash or CPF. There will also be another $129 or so that you have to pay in cash for the caveat fee and title search fees on the day of 1st appointment.

    For the rest, it depends on whether you are taking a bank loan or a HDB loan.

    If you are taking a bank loan, you do not have to fork out cash at the first appointment. Any CPF deductions will be processed accordingly and if any cash payment (e.g. cash over valuation or COV) is required, it is to be paid at the completion appointment (aka 2nd appointment, normally 6 to 8 weeks after the 1st appointment).

    If you are taking a loan from HDB, all the money in your CPF Ordinary Account will have to be paid towards the HDB.

    Cash Payment = Purchase Price - Loan - CPF - Option to Purchase Deposit

    You are required to make the cash payment on the day of the HDB 1st appointment or within 10 days from this date. If the cash payment required is more than 10% of the purchase price, you are only required to pay 10%. The Option to Purchase Deposit contributes towards this 10%.

    Also take note that COV cannot be paid using CPF. If the COV is higher than 10% of the purchase price, you pay 10% of the purchase price in cash within 10 days. The balance is paid on completion.

    Here are a couple of examples.

    Example 1
    Purchase Price : $350,000
    COV : $50,000
    OTP Deposit : $5,000
    Cash Payment = 10% x $350,000 - $5,000 = $30,000

    Example 2
    Purchase Price : $350,000
    Valuation : $330,000
    COV : $20,000
    OTP Deposit : $1,000
    Loan : $297,000 (90% of $330,000)
    CPF : $10,000
    $350,000 - $297,000 - $10,000 - $1,000 = $42,000

    As $42,000 is > 10% of purchase price ($35,000), only $34,000 has to be paid within 10 days from 1st appointment.
    Last edited by HalcyonVI; 15th March 2012 at 06:54 PM.

  6. #6
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    so if i go for bank loan and have enough cpf, i don't have to fork out cash for the COV until completion appointment, rite? but if take from the bank, i still have to pay an addition 5% cash. hdb loan i can pay 100% using cpf, rite? thanks thanks!!

  7. #7
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    Quote Originally Posted by Ah Boy View Post
    so if i go for bank loan and have enough cpf, i don't have to fork out cash for the COV until completion appointment, rite?
    Not really. Even if you do not have enough CPF, you'll only need to fork out cash at the completion appointment.

    Quote Originally Posted by Ah Boy View Post
    but if take from the bank, i still have to pay an addition 5% cash. hdb loan i can pay 100% using cpf, rite? thanks thanks!!
    You got it
    Last edited by HalcyonVI; 30th March 2012 at 06:29 PM.

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