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Old 17-09-2018, 12:58 PM   #20
Arch-Supremacy Member
Join Date: Mar 2004
Posts: 13,398
Just passed 55. CPF charge is still there. No problem for me cos I m happy for money to return to CPF if I sell the house. Then I decide what to do with the CPF funds later.

Spoke to a lawyer. He can get the CPF charge discharged but I will hv to pay his fees.
Under present rules, charge will always be there as long as CPF savings are used for property and not returned, even if one has met FRS at 55.

When one meets FRS at 55, can pay lawyer to remove the charge. But what for?

If charge is not removed, when the property is sold, the money must first go back to CPF with accrued interest, before one is allowed to apply to withdraw amount above FRS.

If charge is removed, proceed from sale of property will go directly to the seller. However, if one decides subsequently to go for BRS, there will be legal fee involved in creating the pledge/charge.

In conclusion, there is no harm living with the charge except for slight delay in getting the money out of CPF.

Although it matters not to most, some people like me would prefer that the CPF plus accrued interest go back to CPF when the property is sold as it is not possible if there is no charge.
henrylbh is offline   Reply With Quote