Co-Owning HDB

[sarcazzfiq]

Hey HWZ

My bro (33y/o) and I (27y/o) want to help out our parents with their HDB loans (left 6 more years with 80k) by being the third owner. Mum and Dad are the current owners of the flat so Bro and I are thinking one of us should co-own and help.

What considerations should we factor in? I do plan to get married earler 2017 but Mum was saying HDB will take all of my CPF OA and re-mortgage the amount and repayment years. At this point of time HDB website is down.

Thanks for your time!

 

[Perisher]

Hey HWZ

My bro (33y/o) and I (27y/o) want to help out our parents with their HDB loans (left 6 more years with 80k) by being the third owner. Mum and Dad are the current owners of the flat so Bro and I are thinking one of us should co-own and help.

What considerations should we factor in? I do plan to get married earler 2017 but Mum was saying HDB will take all of my CPF OA and re-mortgage the amount and repayment years. At this point of time HDB website is down.

Thanks for your time!

Erm... instead of that, why not just write a IOU? Say your parents borrowed 80k from you 2? If they sell their HDB, they would have to pay you or something along that line.

Then you don't have to use your name to be a co-owner of a HDB flat which would cause issues if you wanna get a new flat?

 

[VictorvonDoom]

Erm... instead of that, why not just write a IOU? Say your parents borrowed 80k from you 2? If they sell their HDB, they would have to pay you or something along that line.

Then you don't have to use your name to be a co-owner of a HDB flat which would cause issues if you wanna get a new flat?

I think TS doesn't have 80k cash but rather want to use CPF? He has to be an owner to use CPF for home loans.

My view is not to do it as you're getting married soon. Many issues if you intend to get your own flat in future.

 

[sarcazzfiq]

I do have the cash but I have considered this but I would need cash for :

1) Wedding

2) Renovation of house (if resale and not BTO)

Of course I can consider partner's finances for the above.

But is it true if that I were to Co-own this house, they will use up all my CPF OA Account for them to re-mortgage the repayment loans? If so, then downpayment for my own flat also an issue.

 

[skinergy]

How is your parents repaying the loan? Via their CPF? Not sure if there is a scheme where you can top up your parent's CPF with yours as voluntary contributions then they can pay it via their CPF. You can check with CPF on this

As what the others said, not wise to be 3rd owner, will be very troublesome. Better that you and your bro give them cash monthly, they just repay slowly over the 6 years

 

[dork32]

I do have the cash but I have considered this but I would need cash for :

1) Wedding

2) Renovation of house (if resale and not BTO)

Of course I can consider partner's finances for the above.

But is it true if that I were to Co-own this house, they will use up all my CPF OA Account for them to re-mortgage the repayment loans? If so, then downpayment for my own flat also an issue.

if you use your cpf to pay parents flat, it becomes your own flat. you are not allowed to have another "own" hdb flat with your wife. from experience, if you tell sg gals that they have to stay with your parents when you get married, they will never agree.

if you buy a private condo then yes. but judging by the way you post, a private condo is at least 10 years away for you.

 

[lcpteck]

if you use your cpf to pay parents flat, it becomes your own flat. you are not allowed to have another "own" hdb flat with your wife. from experience, if you tell sg gals that they have to stay with your parents when you get married, they will never agree.

if you buy a private condo then yes. but judging by the way you post, a private condo is at least 10 years away for you.

Damn sg gals sucks....

 

[sarcazzfiq]

Looks like HDB got new website (no wonder cannot go from old link)

Take a look at this. I cant paste link due to insufficient posts.

Am I a first or second-timer applicant?
A first-timer applicant is a person or household that has never received any form of housing subsidy, or similar benefit; a second-timer applicant is a person or household that has. If you are a second-timer and your spouse/ spouse-to-be is a first-timer, you as a couple will enjoy first-timer privileges and priority.


This is under Eligiblity >HDB Flat.

Is this only for Flat Allocation or all privileges as first house too?

 

[dork32]

Looks like HDB got new website (no wonder cannot go from old link)

Take a look at this. I cant paste link due to insufficient posts.

Am I a first or second-timer applicant?
A first-timer applicant is a person or household that has never received any form of housing subsidy, or similar benefit; a second-timer applicant is a person or household that has. If you are a second-timer and your spouse/ spouse-to-be is a first-timer, you as a couple will enjoy first-timer privileges and priority.


This is under Eligiblity >HDB Flat.

Is this only for Flat Allocation or all privileges as first house too?

first or second time refers to new flats bought from hdb.

you buy new flat with wife considered as first time.

you buy into father's flat considered zero time

 

[doody_]

All of this doesn't matter because of 1 simple thing.

If you want to help to pay for your parents' HDB flat using your CPF, you will have to become a co-owner. Only then will you be able to use your CPF to service the mortgage.

If you want to buy a HDB flat with your wife in 2017, you will have to remove your name from your parents' HDB flat. But, it doesn't mean you gave away your money to your parents and all is well. Your parents now have to repay every single cent of CPF you put in, plus accrued interest.

Moral of the story: there is no way out except using cash.

 

[henrylbh]

first or second time refers to new flats bought from hdb.

Not necessary new flats from hdb.

If you buy a resale flat from market with grant, you would have been considered as second timer when applying for flat from hdb.

Also found out that single who took grant to buy resale flat in the past will be barred from applying BTO for single.

 

[bigpelican]

why need to be co-owner? you dont trust your parents?

as you are intending to buy HDB flat in the near future, why create unnecessary problem by adding name, then removing name.

just use your cash to help your parents to service the flat and use your cpf to buy your own flat.

 

[dork32]

why need to be co-owner? you dont trust your parents?

as you are intending to buy HDB flat in the near future, why create unnecessary problem by adding name, then removing name.

just use your cash to help your parents to service the flat and use your cpf to buy your own flat.

not co-owner cannot use cpf to pay.