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Can I use CPF OA to pay more than 20% of purchase price

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Old 02-08-2020, 04:24 PM   #1
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Can I use CPF OA to pay more than 20% of purchase price

Can I use CPF OA to pay more than 20% of the down-payment of the purchase price?

I plan to use CPF OA to pay maybe 30% of purchase price.

Is that possible?
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Last edited by firsttimebuyer; 02-08-2020 at 04:27 PM..
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Old 02-08-2020, 04:30 PM   #2
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Can I use CPF OA to pay more than 20% of the down-payment of the purchase price?

I plan to use CPF OA to pay maybe 30% of purchase price.

Is that possible?
I think it should be possible & sounds reasonable to reduce the loan amount.
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Old 02-08-2020, 04:34 PM   #3
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Hdb or private house?

Taking loan?
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Old 02-08-2020, 04:40 PM   #4
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possible.
by mentioning 20%, I will assume u taking bank loan.

yup, you can pay more but cannot pay less.
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Old 02-08-2020, 04:59 PM   #5
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possible.
by mentioning 20%, I will assume u taking bank loan.

yup, you can pay more but cannot pay less.
Lets say if I have $130K in my CPF OA, and my purchase price is $400K (resale flat).

can I take out $100K out of CPF OA? I was under the impression I must keep $20K in CPF OA.
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Old 02-08-2020, 05:00 PM   #6
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Lets say if I have $130K in my CPF OA, and my purchase price is $400K (resale flat).

can I take out $100K out of CPF OA? I was under the impression I must keep $20K in CPF OA.
You can use any amount in CPF OA to pay for mortgage.
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Old 02-08-2020, 05:01 PM   #7
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Is cash min at 5%?
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Old 02-08-2020, 07:05 PM   #8
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Yes . 5% / 15% .
OA ,can max until 0
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Old 02-08-2020, 07:50 PM   #9
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Is cash min at 5%?
For bank loan. Yes min 5%

Hdb loan don't need
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Old 02-08-2020, 08:02 PM   #10
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Yes . 5% / 15% .
OA ,can max until 0
Should be 5%/20%. Bank loans are not 75%.
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Old 02-08-2020, 08:56 PM   #11
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Definitely can, in fact it is ideal to lessen the loan amount.
My CPF cleared around 45% of my resale flat price.

Try to keep some in your OA for stamp duty and buffer.
For HDB loan, you can only keep 20k max in your OA.
For bank loan, you can keep any amount you want.
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Old 02-08-2020, 09:35 PM   #12
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Money in cpf generates more interest p.a (on compounded amount) than the interest rate paid to bank (based on decreasing principal remaining).. would it make sense to use larger amt of cpf right at the start, which also locks in the point that accrued interest starts computing?
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Old 02-08-2020, 09:53 PM   #13
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Money in cpf generates more interest p.a (on compounded amount) than the interest rate paid to bank (based on decreasing principal remaining).. would it make sense to use larger amt of cpf right at the start, which also locks in the point that accrued interest starts computing?
Yup, I always keep a chunk in CPF which is generating 2.5% interest as not only do I need to return the money to CPF plus accrued interest when I sell my house, but I also lose out on the 2.5% interest PA that they offer. Since bank loan is hovering in the low 1% now, would make sense to take a larger loan then use CPF if/when bank interest>CPF interest
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Old 03-08-2020, 09:08 AM   #14
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Can I use CPF OA to pay more than 20% of the down-payment of the purchase price?

I plan to use CPF OA to pay maybe 30% of purchase price.

Is that possible?


Yes, you can use more than 20% of ur CPF to downsize your loan amount..

if u r taking HDB loan, max u can keep aside is $20k, but u can also choose to wipe out all in ur OA

if u r taking bank loan, u can use watever amount in your OA..

having said that, current bank interest rates are very low, as low as 1.45% for HDB, so it would make more sense to take more loan and leave your CPF monies inside to 'grow' and also to slowly pay for ur mortgage every mth..
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Old 03-08-2020, 10:28 AM   #15
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Yes, you can use more than 20% of ur CPF to downsize your loan amount..

if u r taking HDB loan, max u can keep aside is $20k, but u can also choose to wipe out all in ur OA

if u r taking bank loan, u can use watever amount in your OA..

having said that, current bank interest rates are very low, as low as 1.45% for HDB, so it would make more sense to take more loan and leave your CPF monies inside to 'grow' and also to slowly pay for ur mortgage every mth..
So let's say the HDB resale property price I am aiming for is $400K.

Can I wipe out my entire $130K (the full sum in my CPF OA), use another $100K in cash?

Then my down-payment is $230K.

The remaining $170K I take out a bank loan and the installments I pay out using CPF?
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