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Old 12-03-2019, 11:51 AM   #1
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Question bank loan cpf deduction question

let say my loan payment is $1,000, ie $500 each

if we set our cpf limit to $600, will cpf
1) deduct $600 from 1 account and balance from the other
2) divide the amount equally and deduct from both accounts

i checked with the bank cso, they say they will instruct cpf to deduct $1,000
how cpf deduct is not within their contol
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Old 12-03-2019, 12:24 PM   #2
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What do you wish to achieve, one at $600, and the other at $400? If so, then reduce the limit of the other...

If not, you need to tell us why the need to increase to $600 for both, when max you need is $500 from both.
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Old 12-03-2019, 12:37 PM   #3
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Can always log in to CPF site to change the limit mah. Monthly can change one. Don’t have to be rigid. One $600, another $400 lo. It’s not within bank control one, it’s within your own control on how much u wanna deduct as Long as combine $1k lo.

let say my loan payment is $1,000, ie $500 each

if we set our cpf limit to $600, will cpf
1) deduct $600 from 1 account and balance from the other
2) divide the amount equally and deduct from both accounts

i checked with the bank cso, they say they will instruct cpf to deduct $1,000
how cpf deduct is not within their contol
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Old 12-03-2019, 12:48 PM   #4
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What do you wish to achieve, one at $600, and the other at $400? If so, then reduce the limit of the other...

If not, you need to tell us why the need to increase to $600 for both, when max you need is $500 from both.
wish to achieve - $0 cash deduction

lazy to change whenever there is a change of amount
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Old 14-03-2019, 11:38 AM   #5
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called cpf, they say they will release the set amount, ie $1.2k ($600 each)

bank will then decide if they will
1) refund back to cpf
2) keep for future deduction
3) offset total loan amount
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Old 14-03-2019, 12:10 PM   #6
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called cpf, they say they will release the set amount, ie $1.2k ($600 each)

bank will then decide if they will
1) refund back to cpf
2) keep for future deduction
3) offset total loan amount
honestly, if your instalment is $1k, n u set an amount for CPF to pay $1.2K.... n your reason is that you are lazy to change if instalment goes up... ermm.... going online to cpf to change with singpass, probably only take u 2 min?

now that you set a higher CPF release amount, CPF pays more than they should pay to bank.... Bank receive more than they should receive from you.... Bank side has to do the steps 1, 2 or 3 for you....

so in order to save your 2 minutes for every revision in your instalment which can be 6 months or 1 year or 2 years, the Banks / CPF has to get someone to handle this....

so I will advise you to be nice n spare everyone the misery of this mess.... make the world a better place.... cheers....
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Old 14-03-2019, 12:23 PM   #7
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honestly, if your instalment is $1k, n u set an amount for CPF to pay $1.2K.... n your reason is that you are lazy to change if instalment goes up... ermm.... going online to cpf to change with singpass, probably only take u 2 min?

now that you set a higher CPF release amount, CPF pays more than they should pay to bank.... Bank receive more than they should receive from you.... Bank side has to do the steps 1, 2 or 3 for you....

so in order to save your 2 minutes for every revision in your instalment which can be 6 months or 1 year or 2 years, the Banks / CPF has to get someone to handle this....

so I will advise you to be nice n spare everyone the misery of this mess.... make the world a better place.... cheers....
GIRO can set limit but they deduct based on the instructed amount
not something new, its like since ages ago

why cant CPF do the same? maybe im missing something
anyway to save the trouble, we have set the RIGHT amount

raised this cos we failed to change in time, about $1k cash gone
dont want the same thing to happen again
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Old 15-03-2019, 03:57 AM   #8
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I've been servicing my DBS bank loan with partial cash and cpf components. Every time the interest rate changes, the additional amount is taken from the cpf component automatically. My cash component has not changed in 2 years and I've not needed to do anything.
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Old 15-03-2019, 10:05 AM   #9
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I've been servicing my DBS bank loan with partial cash and cpf components. Every time the interest rate changes, the additional amount is taken from the cpf component automatically. My cash component has not changed in 2 years and I've not needed to do anything.
care to share how you do it?
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Old 21-03-2019, 01:19 PM   #10
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GIRO can set limit but they deduct based on the instructed amount
not something new, its like since ages ago

why cant CPF do the same? maybe im missing something
anyway to save the trouble, we have set the RIGHT amount

raised this cos we failed to change in time, about $1k cash gone
dont want the same thing to happen again
sad to say that CPF ain't the friendliest Govt body.... to them is A = A....
Bank system wise also one kind.... from what I understand, the CPF monies will be deducted first and paid to bank few days before due date... then the Bank will GIRO from your bank account the outstanding amount...

that's why the cash component is fluctuating while the CPF monies is constant....
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Old 21-03-2019, 01:21 PM   #11
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I've been servicing my DBS bank loan with partial cash and cpf components. Every time the interest rate changes, the additional amount is taken from the cpf component automatically. My cash component has not changed in 2 years and I've not needed to do anything.
my loan is also with DBS.... but my cash deduction fluctuates due to increasing FHR... sianz.... my CPF deduction remains same.... GIRO cash changes....
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Old 21-03-2019, 04:03 PM   #12
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wish to achieve - $0 cash deduction

lazy to change whenever there is a change of amount
CPF will disburse the amount to the bank according to your individual instruction to CPF, not the bank.

Any shortfall, the bank will go after the borrower with interest. Whenever there is a change in instalment amount, you and your partner need to log into your respective CPF to indicate what to be deducted from your respective CPF accounts. You and your partner are free to decide among yourself how much to be deducted from each of your CPF account.
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