HDBPRO

Available Cash Savings

 

You must know how much cash savings you have because you will need to pay the following in cash:

• • Deposit to seller (up to a maximum of $5,000)

    Deposit is paid at two stages:

    • • when the sellers grant you an Option to Purchase (OTP) and

      • when you exercise the Option to Purchase (OTP)

  • Initial Payment

    If you are taking a housing loan from the HDB or if you are not taking any housing loan, you have to paya 10% initial payment. The amount is based on the resale price or market value of the flat, whichever is lower. You can use your CPF savings or the CPF Housing Grant or a combination of both to make thepayment. If there is a shortfall, you will have to pay the balance in cash.  

 

If you are taking a bank loan, the initial payment is:

 

On or after 12 Jan 2013

• If you are eligible for a loan ceiling of 80%, you will have to pay the initial payment of

  • 5% in cash

  • balance 15% using CPF savings, CPF Housing Grant or cash                    

  •  

• If you are eligible for a loan ceiling of 60%, you will have to pay the initial payment of

  • • 10% in cash

    • balance using CPF savings, CPF Housing Grant or cash 

    •                  

• If you are eligible for a loan ceiling of 50% or lower, you will have to pay the initial payment of

  • • 25% in cash 

    •  

    •         

You will not be subjected to the lower loan ceiling and higher cash payment when you obtain another housing loan for the purchase of an HDB flat if you are able to provide the financial institution granting the loan a copy of the signed undertaking to HDB committing to complete the sale of your sole existing property within the period stipulated in the undertaking. 

 

 

Between 6 Oct 2012 and 11 Jan 2013

• If you are eligible for a loan ceiling of 80%, you will have to pay the initial payment of

  • 5% in cash

  • balance 15% using CPF savings, CPF Housing Grant or cash                    

  •  

• If you are eligible for a loan ceiling of 60% or 40%, you will have to pay the initial payment of

  • • 10% in cash

    • balance using CPF savings, CPF Housing Grant or cash 

 

Between 14 Jan 2011 and 5 Oct 2012

• If you do not have any outstanding housing loan, you will have to pay the initial payment of

  • 5% in cash

  • balance 15% using CPF savings, CPF Housing Grant or cash                    

  •  

• If you have an outstanding housing loan, you will have to pay the initial payment of

  • • 10% in cash

    • balance 30% using CPF savings, CPF Housing Grant or cash 

 

     

 

• • Cash Payment for Balance Purchase Price

     

     

Where your CPF savings available for use and eligible housing loan do not fully cover the purchase price, you have to pay the balance in cash. The deposit paid earlier to the sellers for the Option To Purchase will be part of this cash payment.

 

CPF Money

You can use the savings in your CPF Ordinary Account to pay for your flat purchase. However, under the CPF Board's requirements, you are allowed to withdraw only up to a certain limit. Once the CPF withdrawal limit is reached, you will not be allowed to use your CPF money to pay for your flat.

To find out the maximum amount of CPF that can be used for the property, you may log on to the CPF Board's CPF Housing Withdrawal Limits Calculator (for flats with remaining lease of 60 years or more) (e-Service) or the Property with less than 60 Years Lease Calculator (for flats with remaining lease of less than 60 years, but at least 30 years) (e-Service).

If you are buying a flat with remaining lease less than 30 years, CPF monies cannot be used. This is applicable to resale applications received on or after 1 July 2013.

For enquiries on CPF withdrawal limits, you may call the CPF Board at 1800-2271188 or e-mail CPF Board.

 

Housing Loan (if required)

 

You can choose to get an HDB loan or a bank loan to help you in financing your purchase.

 

HDB Housing Loan

 

If you want to apply for an HDB loan, you must meet all the eligibility conditions to get a housing loan fromthe HDB. It is a requirement for all potential flat buyers taking an HDB loan to have a valid HDB Loan Eligibility (HLE) letter before they exercise the Option to Purchase. Flat buyers are, however, advised to apply for the HLEletter even before searching for their flat. This is to ensure that flat buyers are able to pay for their home and service the loan without overstretching their finances. The HLE letter provides buyers with information on:

• • Eligibility for an HDB loan

  • Maximum Loan Amount Eligible

  • Maximum Loan Repayment Period

  • Monthly Loan Instalment

 

If you are buying a flat with remaining lease less than 20 years, HDB loan will not be granted. This is applicable to resale applications received on or after 1 July 2013.

 

Bank Loan

If you are not eligible for an HDB loan, you will have to get a bank loan to finance the purchase. It is arequirement for all potential HDB flat buyers to get a Letter of Offer from the bank before they exercise the Option to Purchase. 

You should study the different housing loan packages offered by various banks before you make a decision.Do read the terms and conditions carefully. Also, bear in mind that interest rates may increase over the years.

 

CPF Housing Grant (if eligible)

The CPF Housing Grant is a housing subsidy given by the government to eligible buyers of resale flats. The grant amount will be credited to your CPF Ordinary Account and form part of your CPF savings.

The CPF Housing Grant can be used for paying the initial payment towards the purchase. The balance, if any, must be used to reduce the mortgage loan. It cannot be used to pay for the stamp duty, legal fees or the required cash payments.

If you are buying a flat with remaining lease less than 30 years, you will not be eligible for any CPF Housing Grant. This is applicable to resale applications received on or after 1 July 2013.