HWZ Forums

thevaluefund · 14-09-2018, 12:59 PM

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.

henrylbh wrote:

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

henrylbh wrote:

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

thevaluefund wrote:

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

eric3743 wrote:

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

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.

The_Davis · 15-09-2018, 01:15 PM

whitesand wrote:

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

henrylbh wrote:

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.

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

The_Davis wrote:

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

No?

whitesand · 15-09-2018, 02:03 PM

The_Davis wrote:

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

whitesand wrote:

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

The_Davis wrote:

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

henrylbh wrote:

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

The_Davis wrote:

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.