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-   -   What happens to CPF Charge on Property after 55 if meet FRS? (https://forums.hardwarezone.com.sg/money-mind-210/what-happens-cpf-charge-property-after-55-if-meet-frs-5901486.html)

thevaluefund 14-09-2018 12:59 PM

What happens to CPF Charge on Property after 55 if meet FRS?
 
This is a niche case of mine. But I can't find the answer anywhere on CPF website.

1. I use my OA to service my bank loan. There is a CPF Property charge.

2. At 55, I already meet the FRS and MA from my SA and MA.

3. In theory, there shouldn't be any more CPF Property Charge as I fulfilled my obligations to the CPF already right ? My previous OA and future OA payments for pay loan should not attract a CPF Property charge ?


PS: It seems dumb there is a CPF Charge but there is no explicit wording that says the CPF Charge automatically expires once FRS is met.

henrylbh 14-09-2018 01:10 PM

If I am not wrong, under the new ruling, the charge will always be there until CPF used is returned first to release the charge or you uplorry.

thevaluefund 14-09-2018 01:32 PM

I also read between the lines that it stays until u return or uplorry. But this is illogical if they let u withdraw anything in OA/SA above FRS.

I actually 45 currently and meet FRS and MA limit liao. Auto compounding at current interest rates, this should still meet the new FRS and MA limits in 10 years time.

Quote:

Originally Posted by henrylbh (Post 116499799)
If I am not wrong, under the new ruling, the charge will always be there until CPF used is returned first to release the charge or you uplorry.


whitesand 14-09-2018 01:47 PM

Quote:

Originally Posted by henrylbh (Post 116499799)
If I am not wrong, under the new ruling, the charge will always be there until CPF used is returned first to release the charge or you uplorry.

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.

eric3743 14-09-2018 02:00 PM

Quote:

Originally Posted by thevaluefund (Post 116500149)
I also read between the lines that it stays until u return or uplorry. But this is illogical if they let u withdraw anything in OA/SA above FRS.

I actually 45 currently and meet FRS and MA limit liao. Auto compounding at current interest rates, this should still meet the new FRS and MA limits in 10 years time.

This is all about proper accounting procedure.

What is taken out need to be returned + interest to your account as like it is there all along.

The point on CPF is whatever go in will have stay there until to the point that you are allow to withdraw based on conditions.

Anyway it is still your monies but the money flow in & out have to be recorded in your account statement.

Taking CPF out for housing do not mean as withdrawal but as merely a loan from your own CPF account managed by CPF Board.

henrylbh 14-09-2018 10:33 PM

Quote:

Originally Posted by eric3743 (Post 116500592)
This is all about proper accounting procedure.

What is taken out need to be returned + interest to your account as like it is there all along.

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 :s22:

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 donít 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 :s13:

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 :s22::s22::s22:

So why care about CPF charge on property when panadol can't help the above can and cannot.

The_Davis 15-09-2018 01:15 PM

Quote:

Originally Posted by whitesand (Post 116500391)
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.

where did you read about this?

terence2112 15-09-2018 01:27 PM

Quote:

Originally Posted by henrylbh (Post 116508615)
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 :s22:

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 donít 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 :s13:

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 :s22::s22::s22:

So why care about CPF charge on property when panadol can't help the above can and cannot.

You must have inside knowledge to know this. Not any layman can understand this.
But yes, you are spot on.

henrylbh 15-09-2018 01:36 PM

Quote:

Originally Posted by The_Davis (Post 116515570)
where did you read about this?

Most of us get info from reading news and publications and CPF website and cocktails from forums and friends and then make our own cocktail :s13: No?

whitesand 15-09-2018 02:03 PM

Quote:

Originally Posted by The_Davis (Post 116515570)
where did you read about this?

Asked CPF Board, and their staff told me.

SBC 15-09-2018 02:25 PM

Is TS concern more of passing down the property involved?
Or the servicing of the mortgage using CPF?

The_Davis 15-09-2018 06:12 PM

Quote:

Originally Posted by whitesand (Post 116516273)
Asked CPF Board, and their staff told me.

you mean this is unspoken rule and not available on website???

henrylbh 15-09-2018 11:13 PM

Quote:

Originally Posted by The_Davis (Post 116519861)
you mean this is unspoken rule and not available on website???

No every rules is available in the website, only common and less complicating ones.

For example, how many knows that when a member dies, all his accounts will be merged into one OA the following month. If not drawn out, it will cease to earn interest after 7 years.

The_Davis 16-09-2018 01:25 AM

Quote:

Originally Posted by henrylbh (Post 116524926)
No every rules is available in the website, only common and less complicating ones.

For example, how many knows that when a member dies, all his accounts will be merged into one OA the following month. If not drawn out, it will cease to earn interest after 7 years.

hmm...........

should we have one thread for what happens to your cpf after you die?

henrylbh 16-09-2018 10:20 AM

Quote:

Originally Posted by The_Davis (Post 116526687)
hmm...........

should we have one thread for what happens to your cpf after you die?

I see no need. It's clear enough that every cent will go to the nominee or to the public trustee - only when nominee decides to leave the bequest where is it and no many do.


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