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What happens to CPF Charge on Property after 55 if meet FRS?

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Old 17-09-2018, 08:00 AM   #16
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Thanks for the inputs. However, in theory, we can also have a CPF charge of zero. No legal fees needed. Perheps you are right that it becomes notional once u meet FRS ie for show, no effect.

Has anyone experienced this scenario yet ? Keen to hear what happened in your case.

I will write to CPF but don't know if CSO will understand. Sigh.

This is want I understood fr CPF:

1. The charge will still be there. If you want to remove that charge now, got to get a lawyer to remove it (since you met FRS, CPF will agree), which cost money.

2. Alternatively, you can just leave the charge there, till someday you sell/transfer your property, and get the lawyer to remove the charges at the same time. This is more convenient and probably cost less as your lawyer to doing it together.
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Old 17-09-2018, 08:05 AM   #17
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waliao. I need panadol.

No, it was not like it is there all along. Then it was there and then not there and now it not here and not there

Last time when one has met the min sum at 55, CPF principal amount withdrawn and accrued interest no longer exist. When a flat is sold, the proceeds go directly to the CPF member. Even if member wants the money to go back CPF, they don’t allow.

Later on, CPF principal amount withdrawn (for 55er who met MSS) was briefly shown with accrued interest. But amount to be refunded would be shown as NIL

Then it was changed to show only CPF principal amount withdrawn from 1 Jan 2013 and the accrued interest and this is the amount that is to be refunded. But CPF principal amount withdrawn before 1 Jan 2013 was not shown.

Then it was changed to include principal amount withdrawn before 1 Jan 2013 and this is distinguished from CPF principal amount withdrawn from 2013 and the total accrued interest (with no distinction). But another line would show only CPF principal amount withdrawn from 2013 and its related interest and this is the amount that need to be refunded

So why care about CPF charge on property when panadol can't help the above can and cannot.
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Old 17-09-2018, 09:31 AM   #18
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Thanks for the inputs. However, in theory, we can also have a CPF charge of zero. No legal fees needed. Perheps you are right that it becomes notional once u meet FRS ie for show, no effect.

Has anyone experienced this scenario yet ? Keen to hear what happened in your case.

I will write to CPF but don't know if CSO will understand. Sigh.

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.
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Old 17-09-2018, 12:35 PM   #19
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Thanks for sharing your actual experience. Looks like this becomes a moot accounting exercise for CPF/Lawyers to suck more blood.

Just looks silly for those who meet FRS/ERS.

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.
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Old 17-09-2018, 12:58 PM   #20
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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.
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Old 17-09-2018, 07:33 PM   #21
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Thanks for sharing your actual experience. Looks like this becomes a moot accounting exercise for CPF/Lawyers to suck more blood.

Just looks silly for those who meet FRS/ERS.
if you have been paying off mortgage loan using cpf, it will be quite a huge amount of accrued interest after 20/30 years. wouldn't it be good to pay a few k to write off few hundred k of accrued interest?
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Old 17-09-2018, 08:39 PM   #22
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The property charge to remain is good. (Amount used + accrued interest). Benefit is that you’re allowed to do a payback anytime. If they remove this, than you won’t be able to do this payback.

Idea is when officially retire, exit stock market, surrender ILPs and use the lump sum to do the “payback” into OA.

This OA account can than serve as your regular bank account with 2.5% pa. risk-free without any strings attached. Unlike what the banks need u to do in order to pay u a higher interest.(OCBC one/DBS Multiplier)
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Old 18-09-2018, 07:46 AM   #23
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I suppose u can use the OA as a standby bank account with 2.5% interest rate if u really want.

The property charge to remain is good. (Amount used + accrued interest). Benefit is that you’re allowed to do a payback anytime. If they remove this, than you won’t be able to do this payback.

Idea is when officially retire, exit stock market, surrender ILPs and use the lump sum to do the “payback” into OA.

This OA account can than serve as your regular bank account with 2.5% pa. risk-free without any strings attached. Unlike what the banks need u to do in order to pay u a higher interest.(OCBC one/DBS Multiplier)
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Old 18-09-2018, 02:26 PM   #24
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Yes Bro. Actually I learned about this from BBC, he’s really knowledgeable.

However do note that when u withdraw, it’s from SA first before OA. If u still have a reasonable amount in SA after 55(search SA shielding), it may not be worthwhile to do this.

However, the workaround to this would be:

1)Husband has substantial SA, so don’t do any repayment back to OA. Collect the SA interest from SA shiok shiok.
2)Spouse has just enough for ERS/FRS and not much left in SA, than do repayment back into her account and use her account as your regular bank account.

I suppose u can use the OA as a standby bank account with 2.5% interest rate if u really want.
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