Accrued interest in CPF

[kehyi4]

From 55, I remember the rule has been changed to an old rule that only amount needed to make good FRS will auto return to CPF.

For those age 55 and above with FRS, gone is the chance to leave money in OA until needed.

From same CPF FAQ that i quoted earlier:
https://www.cpf.gov.sg/members/schemes/schemes/housing/housing-scheme#Item1631
If you are 55 years old and above:
* You will also need to refund the pledged amount on top of the P and I if you had pledged to refund an amount withdrawn from your Retirement Account (RA) savings in cash;
* The amount refunded to your CPF account will be used to meet your retirement savings up to the Full Retirement Sum (FRS) in your RA. Thereafter, any balance will be paid to you in cash within 1 week from the time the refunds are credited to your CPF account;
* You can also choose to retain the balance in your CPF account by writing to us at least 2 weeks before the completion of the sale of your property. Do note that the withdrawal rules for members aged 55 and above will apply subsequently should you want to withdraw these savings;
* Should you require the sale proceeds urgently, you may write to us 2 weeks before the completion of sale and request to only refund up to your FRS instead of the full P+I.

 

[henrylbh]

From same CPF FAQ that i quoted earlier:
https://www.cpf.gov.sg/members/schemes/schemes/housing/housing-scheme#Item1631
If you are 55 years old and above:
* You will also need to refund the pledged amount on top of the P and I if you had pledged to refund an amount withdrawn from your Retirement Account (RA) savings in cash;
* The amount refunded to your CPF account will be used to meet your retirement savings up to the Full Retirement Sum (FRS) in your RA. Thereafter, any balance will be paid to you in cash within 1 week from the time the refunds are credited to your CPF account;
* You can also choose to retain the balance in your CPF account by writing to us at least 2 weeks before the completion of the sale of your property. Do note that the withdrawal rules for members aged 55 and above will apply subsequently should you want to withdraw these savings;
* Should you require the sale proceeds urgently, you may write to us 2 weeks before the completion of sale and request to only refund up to your FRS instead of the full P+I.

Not long before, for 55 and above, it was auto refund of principal sum with accrued interest regardless of whether FRS is met. Any excess can be withdraw thereafter. If want only shortfall of FRS to be returned, must write in.

Now only shortfall in FRS will auto refund, and if want to refund principal sum with accrued, one must write in as above. If not approved, chance of returning CPF is forfeited.

 

[cscs3]

I had understood that if selling property after 55 & had attained FRS, AI can be skipped.

Yes correct. In fact CPF will write to you and you can collect your house title list (<< not sure the correct name) back. The house is consider fully owned by you if you have no more outstanding loan with bank.

 

[cscs3]

i think you think vs CPF FAQ:

https://www.cpf.gov.sg/members/schemes/schemes/housing/housing-scheme#Item1631

If you have used your CPF savings to finance your property, you will have to refund the following to your CPF account:
* the principal CPF amount (P) which you have withdrawn for the property; and
* (the accrued interest (I) which you would have earned if the savings were not withdrawn from your CPF account.
...
If you are 55 years old and above:
* You will also need to refund the pledged amount on top of the P and I if you had pledged to refund an amount withdrawn from your Retirement Account (RA) savings in cash;
* The amount refunded to your CPF account will be used to meet your retirement savings up to the Full Retirement Sum (FRS) in your RA. Thereafter, any balance will be paid to you in cash within 1 week from the time the refunds are credited to your CPF account;
...

Think the 2nd portion is not true (for age 55 onward) if you meet the minimum amount in RA.

 

[davidtanwei]

I using hdb loan and at first...they wipe out my oa.
After that... remaining balance I borrow from hdb. So this accured interest generated from my first wipe out? So even if I finished my hdb loan...this accured interest keep on rolling?
So if I take bank loan ...they include accured interest?

 

[bermudas]

I using hdb loan and at first...they wipe out my oa.
After that... remaining balance I borrow from hdb. So this accured interest generated from my first wipe out? So even if I finished my hdb loan...this accured interest keep on rolling?
So if I take bank loan ...they include accured interest?

1. Yes, accrued interest (AI) generated from first wipe out
2. Yes, AI will continue rolling even after you have finish paying the HDB loan
3. If you use CPF-OA to pay for the bank loan, then yes, AI will continue to roll

 

[henrylbh]

I using hdb loan and at first...they wipe out my oa.
After that... remaining balance I borrow from hdb. So this accured interest generated from my first wipe out? So even if I finished my hdb loan...this accured interest keep on rolling?
So if I take bank loan ...they include accured interest?

Whatever taken out of CPF for hdb or bank loan will return to CPF with accrued interest. It will keep accumulating until you return in full or when you sell your property or when you pass off.

 

[heartywarrior]

what if when u sell yr flat that was bought fully with OA at a loss or selling price at the original principle sum, do u still need to repay the AI in cash since yr sales proceed is less?

 

[reddevil0728]

what if when u sell yr flat that was bought fully with OA at a loss or selling price at the original principle sum, do u still need to repay the AI in cash since yr sales proceed is less?

 

[hwmook]

what if when u sell yr flat that was bought fully with OA at a loss or selling price at the original principle sum, do u still need to repay the AI in cash since yr sales proceed is less?

No need. They just want to make sure you are refunding principle + interest when you sell your property else you are indirectly taking money (interest) out from CPF.

 

[proton_cannon]

just to clarify, if I am an owner of HDB and I never sell the HDB and pass the HDB to my children after death--> then when my children sell the HDB, there is no more accrued interest to be paid?

or is the accused interest "disappear" when the owner passed away and his cpf and housing is passed to others...?

 

[reddevil0728]

just to clarify, if I am an owner of HDB and I never sell the HDB and pass the HDB to my children after death--> then when my children sell the HDB, there is no more accrued interest to be paid?

or is the accused interest "disappear" when the owner passed away and his cpf and housing is passed to others...?

Don’t think too much.

appreciate why accrued interest even exist to begin with.

 

[blahblah4321]

Don’t think too much.

appreciate why accrued interest even exist to begin with.

How about if the HDB got enbloc? do u still need to pay the accrued interest?

 

[reddevil0728]

How about if the HDB got enbloc? do u still need to pay the accrued interest?

Understand why accrued interest exist in the first place.

And also understand what do you get out of HDB enbloc and not just HDB, any property in fact when you use CPF to pay

 

[blahblah4321]

Understand why accrued interest exist in the first place.

And also understand what do you get out of HDB enbloc and not just HDB, any property in fact when you use CPF to pay

Understand thanks will dyodd!

 

[proton_cannon]

just to clarify, if I am an owner of HDB and I never sell the HDB and pass the HDB to my children after death--> then when my children sell the HDB, there is no more accrued interest to be paid?

or is the accused interest "disappear" when the owner passed away and his cpf and housing is passed to others...?

Don’t think too much.

appreciate why accrued interest even exist to begin with.

Found the answer to my question on this website

https://seedly.sg/posts/i-m-the-sol...terest-if-either-of-them-sold-it-respectively

 

[henrylbh]

How about if the HDB got enbloc? do u still need to pay the accrued interest?

You get compensation money for enbloc and a chance to buy the replacement flat. Yes, must pay the accrued interest.

 

[davidtanwei]

When doing down payment for my first house. I paid almost all of it and my wife little. First wipe out for me is 200k and my wife is 5k. Now I am the only one paying every month loan. If we sell the house ...they divide by half and put back to our OA account or they go by total percentage overall contribution

 

[reddevil0728]

When doing down payment for my first house. I paid almost all of it and my wife little. First wipe out for me is 200k and my wife is 5k. Now I am the only one paying every month loan. If we sell the house ...they divide by half and put back to our OA account or they go by total percentage overall contribution

try to understand what the purpose of Accrued Interest is. At the end of the day, what's taken must be paid back.

 

[dork32]

When doing down payment for my first house. I paid almost all of it and my wife little. First wipe out for me is 200k and my wife is 5k. Now I am the only one paying every month loan. If we sell the house ...they divide by half and put back to our OA account or they go by total percentage overall contribution

they will pay back the principal + interest first to your wife and your account.

you then fight with your wife watever cash that is left. not happy can ask lawyer to fight for you