Figuring the Math for financing....
Perhaps, someone understands this in detail and understand how the financing is going to work:
Example parameters
Cost Of new flat= 200,000
10% deposit by CPF Ord = 20,000
CPF AHG = 10,000
HLE only offers loan 30 yr= 70,000
CPF Ordinary account = 40,000
Add: AHG 10,000
Less: 10% deposit 20,000
Balance in CPF Ord 30,000
Assume u can raise the rest, or already saved up, it is likely that u have to pay the balance due in CASH. However, with the CPF grants and deposit, do they reduce the HDB loan ? And then there is a balance of 30k that is still in the CPF Ord, what happens to this ? Isnt the CPF used to pay the principal one shot or spread over the term of the loan and making u top up in cash in the monthly installments ?
Someone please assist and enlighten how all this works ? I know it is not rocket science unless u understand the rules of the game.
Thank u for your kind help.