CPF monthly installment

[lemonchan]

Hi,

Assuming my current CPF has enough money to pay for the total price of a new flat i bought. But i prefer to pay by monthly basis, is it possible ?

I research online, and seem to get the impression that monthly installment of CPF payment is when I am on house loan, but in my case, i am not loaning from HDB or Bank.

 

[GeraldineT]

Hi,

Assuming my current CPF has enough money to pay for the total price of a new flat i bought. But i prefer to pay by monthly basis, is it possible ?

I research online, and seem to get the impression that monthly installment of CPF payment is when I am on house loan, but in my case, i am not loaning from HDB or Bank.

from what I know is they will wipe out all ur CPF when u get the keys.
so unless u have cash to pay then can't

 

[kiatme]

Technically HDB or the bank pays full amount upfront for you, you're just repaying monthly to the loaner, makes sense?

If you're paying on monthly basis, it makes no diff from renting, and what if you decide to run away and not pay, hdb will lose out.

Interesting concept though, don't think it will work

 

[lemonchan]

Technically HDB or the bank pays full amount upfront for you, you're just repaying monthly to the loaner, makes sense?

If you're paying on monthly basis, it makes no diff from renting, and what if you decide to run away and not pay, hdb will lose out.

Interesting concept though, don't think it will work

If i am repaying monthly to the loaner (HDB or bank), that would mean i need to pay the interest only. That is why I was asking this question of paying monthly, but not going through loaner. Hehe...

 

[lemonchan]

from what I know is they will wipe out all ur CPF when u get the keys.
so unless u have cash to pay then can't

Oh. Interesting. Wish i can confirm this on HDB website, but couldn't find it. Maybe I haven't look thorough enough

 

[bojangle]

whatever u hv in OA will be wipe out. If you dun want HDB to remove all your funds, you can park some in investment funds/bonds with banks/insurance before key collection. After few months you can transfer back to OA, that's what I did previously.

 

[Pokémon]

If i am repaying monthly to the loaner (HDB or bank), that would mean i need to pay the interest only.

It seems you have the whole picture entirely wrong...

When you buy something, you need to pay for the full price to the seller. If you choose not to, then you need to loan from someone else to pay for you first, and you return the loan amount plus interest over an agreed period of time to that person you loan from. It is not just the interest that you will be paying.

Therefore, if you do not wish to loan, you will need to pay Cash/CPF upfront to the seller.

Have you ever not been taught this simple concept of buying/selling and loan?

 

[SBC]

Try asking the ruling party or any Ah long.

 

[lemonchan]

It seems you have the whole picture entirely wrong...

When you buy something, you need to pay for the full price to the seller. If you choose not to, then you need to loan from someone else to pay for you first, and you return the loan amount plus interest over an agreed period of time to that person you loan from. It is not just the interest that you will be paying.

Therefore, if you do not wish to loan, you will need to pay Cash/CPF upfront to the seller.

Have you ever not been taught this simple concept of buying/selling and loan?

Oops..Sorry, I dont know what got into my head when I wrote this. Typo correct..I should say "...that would mean I need to pay additional fee (interest) on top of the purchase price."

 

[Pokémon]

Oops..Sorry, I dont know what got into my head when I wrote this. Typo correct..I should say "...that would mean I need to pay additional fee (interest) on top of the purchase price."

Not convincing at all.

In any case, I would still say that you did not understand the concept prior to this. If you had, this question would not even need to be asked.

I hope you have a better understanding now.

 

[eric3743]

Oops..Sorry, I dont know what got into my head when I wrote this. Typo correct..I should say "...that would mean I need to pay additional fee (interest) on top of the purchase price."

HDB Flat and HDB Loan are 2 different matter & entity.

Buying a flat from HDB the owner have to pay in FULL of the purchase price.

Either you borrow from the HDB Loan or Bank to pay this FULL purchase price Or CASH up-front.

Interest is for the Loan, and if you do not want then have to pay in Cash as fully paid-up.

If you use CPF money, and at the end of the day you still need to pay for the CPF interest, separately, to return to the CPF account.

 

[theblueark]

The concept very simple mah. You pay for the house in full. The full payment can be
(1) all upfront
(2) by a hdb loan
(3) by a bank loan.
Since you say not (2) hdb loan and not (3) bank loan, then all upfront lor.

Anytime you owe ppl money of course must pay interest. You are asking if can owe but don’t pay interest

 

[fotoudavid]

You guys good, I still cannot understand what TS wants

 

[slashGNR]

You guys good, I still cannot understand what TS wants

Simple, TS wanted to earn interest and don't want to pay interest at the same time.

 

[eric3743]

Simple, TS wanted to earn interest and don't want to pay interest at the same time.

Not really.

In the 1st post it meant to buy & pay directly for the flat price to HDB by installment monthly Without any Loan.
As loan meant to pay for the interest.

Similar to rental in theory.

 

[lemonchan]

Not really.

In the 1st post it meant to buy & pay directly for the flat price to HDB by installment monthly Without any Loan.
As loan meant to pay for the interest.

Similar to rental in theory.

Yes. What eric3743 saying is exactly the question I want to ask.
To pay purely by CPF monthly, without going through loan, because paying by loan need to include interest.

But from the all the replies I got, seem that this cannot be done.

 

[Pokémon]

Not really.

In the 1st post it meant to buy & pay directly for the flat price to HDB by installment monthly Without any Loan.
As loan meant to pay for the interest.

Similar to rental in theory.

No, I think slashGNR is correct basically. That is also how I interpreted initially.

TS wanted to pay monthly without incurring interest not through any loan. Why do that, so that the remaining money in CPF can continue to earn the 2.5% interest.

Anyway, we know this is not possible.

 

[theblueark]

Yes. What eric3743 saying is exactly the question I want to ask.
To pay purely by CPF monthly, without going through loan, because paying by loan need to include interest.

But from the all the replies I got, seem that this cannot be done.

If you are paying for a full purchase spread out monthly it IS a loan. Every month you still haven’t pay finish the full purchase aka you owe them money. Yes certain places certain things ppl give you 0% interest installment plan, but you are still oweing someone money aka you are taking a loan. How to owe money but don’t want to call it a loan? Owe money means is a loan la. Just see you want to owe hdb or you want to owe bank.

So maybe you are asking if HDB can use cpf with 0% interest installment plan. Answer is no.

 

[kiatme]

it is an interesting concept lah, maybe who knows one of the HDB decision maker is a follower of this forum, he read this and conceptualize this into reality ?

but technically what you're asking is whether you can rent from HDB on a monthly basis and pay with CPF.

What is happening right now is we're renting from HDB on a 99 year lease basis with the option to flip and transfer ownership.

 

[henrylbh]

from what I know is they will wipe out all ur CPF when u get the keys.
so unless u have cash to pay then can't

He said he got enough in CPF to pay for the flat but wish to pay by instalment.

If want, no hdb loan as full price will be wiped from his CPF.

If bank loan, he can borrow whatever he wants by using CPF to pay the min required by the bank.