Cash Proceeds

CyanCyan

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Hi All,

I know this topic is around for a while, but I am getting a little confuse with really different opinions from many here. Sorry if this is a repeat.

I just get straight to the point and hope for some kind explanation.

I am applying for a new BTO

New BTO costs: $390K

Current HDB sales (future estimated): $450K
No outstanding Loan, current house fully paid

Return to CPF with interest: $300k
OA in CPF more than 90k.

So returned CPF + my current OA is more than enough to pay for the new BTO 100%.

So assume my cash proceeds is $150k, - $40k levy = $110K

My question is, will HDB still take 50% cash proceeds from me to pay the house?
Or based on my situation above that my CPF returns and OA will be more than sufficient to pay for the new BTO and HDB will not touch my cash?

I will sell after i buy.

Many thanks for kind help
 

MortgageSingapore

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Downpayment for HDB flat
The amount to pay depends on whether you are:

Taking an HDB housing loan
Not taking any housing loan
Taking a bank loan
Type of Loan (If Applicable)

Downpayment

Mode of Payment

Taking an HDB housing loan

10% of the purchase price

CPF and/ or cash

You can use your CPF Ordinary Account (OA) savings to make the downpayment in full. If the CPF OA amount is insufficient, the balance is to be paid in cash.
Not taking any housing loan


http://www.hdb.gov.sg/cs/infoweb/residential/buying-a-flat/new/finance/costs-and-fees


Just wipe out your cpf, but you're selling after you buy which means you're likely required to take up a bridging loan else won't be able to get your key since you have to pay the balance before they issue you the key.

Not sure how it works though,the best and safest way is to check with HDB.
 
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GeraldineT

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Hi All,

I know this topic is around for a while, but I am getting a little confuse with really different opinions from many here. Sorry if this is a repeat.

I just get straight to the point and hope for some kind explanation.

I am applying for a new BTO

New BTO costs: $390K

Current HDB sales (future estimated): $450K
No outstanding Loan, current house fully paid

Return to CPF with interest: $300k
OA in CPF more than 90k.

So returned CPF + my current OA is more than enough to pay for the new BTO 100%.

So assume my cash proceeds is $150k, - $40k levy = $110K

My question is, will HDB still take 50% cash proceeds from me to pay the house?
Or based on my situation above that my CPF returns and OA will be more than sufficient to pay for the new BTO and HDB will not touch my cash?

I will sell after i buy.

Many thanks for kind help

if ur cpf is enough to cover the BTO amount all the rest of the stamp fees and etc, they will not touch ur cash.

Just out of curiosity how did u manage to know ur Return to CPF with interest: $300k?
is it on cpf site or self calculation?
 

MortgageSingapore

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if ur cpf is enough to cover the BTO amount all the rest of the stamp fees and etc, they will not touch ur cash.

Just out of curiosity how did u manage to know ur Return to CPF with interest: $300k?
is it on cpf site or self calculation?

You can check out the CPF accrued interest on CPF portal under my statement>property withdrawal statements.
 

CyanCyan

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if ur cpf is enough to cover the BTO amount all the rest of the stamp fees and etc, they will not touch ur cash.

Just out of curiosity how did u manage to know ur Return to CPF with interest: $300k?
is it on cpf site or self calculation?

You can check out the CPF accrued interest on CPF portal under my statement>property withdrawal statements.

Yes like Mortgage said, CPF site will have the amount.
Anyways 300k is my assumption. but argar argar that range.

Thanks Geraldine for the info. Thats what my thinking was as well and I did ask the HDB officer during selection.
But yesterday an agent came to my place cold call, and she mentioned is cash proceed will be locked out 50% irregardless if the CPF (after sales return plus OA) is sufficient to pay off 100% of the new flat. SHe quoted her sister also same thing.

Got me anxious for a bit because that was not my plans at all.
 

CyanCyan

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Downpayment for HDB flat
The amount to pay depends on whether you are:

Taking an HDB housing loan
Not taking any housing loan
Taking a bank loan
Type of Loan (If Applicable)

Downpayment

Mode of Payment

Taking an HDB housing loan

10% of the purchase price

CPF and/ or cash

You can use your CPF Ordinary Account (OA) savings to make the downpayment in full. If the CPF OA amount is insufficient, the balance is to be paid in cash.
Not taking any housing loan


http://www.hdb.gov.sg/cs/infoweb/residential/buying-a-flat/new/finance/costs-and-fees


Just wipe out your cpf, but you're selling after you buy which means you're likely required to take up a bridging loan else won't be able to get your key since you have to pay the balance before they issue you the key.

Not sure how it works though,the best and safest way is to check with HDB.

Thanks I understand all that part and what i need to pay.
Just concerned with the cash proceeds as I read many different views on this. And triggered by the property agent that came knocking yesterday.
Considering she is the professional in housing matters, she got me anxious.

I have mailed to HDB to clarify. Although I did ask this question during flat selection.
 

GeraldineT

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Yes like Mortgage said, CPF site will have the amount.
Anyways 300k is my assumption. but argar argar that range.

Thanks Geraldine for the info. Thats what my thinking was as well and I did ask the HDB officer during selection.
But yesterday an agent came to my place cold call, and she mentioned is cash proceed will be locked out 50% irregardless if the CPF (after sales return plus OA) is sufficient to pay off 100% of the new flat. SHe quoted her sister also same thing.

Got me anxious for a bit because that was not my plans at all.

I think unless u hit a certain age. There is a need for the minimum 166k in cpf( I can’t rmb the exact amount) then if so the cash proceed will be lesser
 

Pokémon

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I suppose the agent did not understand your case fully, or her knowledge is not in full to give you a proper advice.

Judging from what she said to you, she likely is assuming that you will be taking a 2nd HDB Loan, and therefore, this applies (see under When yours is a second HDB concessionary housing loan).

However, since you do not need any HDB Loan, of course that should not apply to you at all. Do check if you will be able to use your CPF to pay fully for the BTO however, though I am pretty sure there should be no restriction.
 

Pokémon

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I think unless u hit a certain age. There is a need for the minimum 166k in cpf( I can’t rmb the exact amount) then if so the cash proceed will be lesser

Since TS owns a property, he will just need to set aside the Basic Retirement Sum, which is half of the Full Retirement Sum.

Looking at his CPF OA and amount used for loan repayment, pretty sure he needs not worry about it at all no matter what age he is now.
 

CyanCyan

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Since TS owns a property, he will just need to set aside the Basic Retirement Sum, which is half of the Full Retirement Sum.

Looking at his CPF OA and amount used for loan repayment, pretty sure he needs not worry about it at all no matter what age he is now.

Not that old to need to meet the minimum sum now haha.
but yes, CPF return from sales and also current OA will be sufficient to clear the new flat 100%.
 

CyanCyan

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I suppose the agent did not understand your case fully, or her knowledge is not in full to give you a proper advice.

Judging from what she said to you, she likely is assuming that you will be taking a 2nd HDB Loan, and therefore, this applies (see under When yours is a second HDB concessionary housing loan).

However, since you do not need any HDB Loan, of course that should not apply to you at all. Do check if you will be able to use your CPF to pay fully for the BTO however, though I am pretty sure there should be no restriction.

Thanks. HDB info did not cover my scenario.
The agent was soooo convinced that she is right, she quoted her sister also like that so went to take a bank loan. I told her i will not be taking a loan but she says still be same. 50% locked out go pay new flat what not.

Scare me whole night till i post this question.
I also went to mail HDB about this too.
 

MortgageSingapore

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Thanks. HDB info did not cover my scenario.
The agent was soooo convinced that she is right, she quoted her sister also like that so went to take a bank loan. I told her i will not be taking a loan but she says still be same. 50% locked out go pay new flat what not.

Scare me whole night till i post this question.
I also went to mail HDB about this too.

I don't think that the 50% issue apply to your case as you're not getting a hdb loan.
You should be able to pay fully using cpf for your new BTO but process wise, check with HDB on it.
 
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