BUYING YOUR FIRST HOME - Central Provident · PDF file Property Purchase can be used for: Home...

Click here to load reader

  • date post

    13-Jul-2020
  • Category

    Documents

  • view

    0
  • download

    0

Embed Size (px)

Transcript of BUYING YOUR FIRST HOME - Central Provident · PDF file Property Purchase can be used for: Home...

  • FOR SALE

    BUYING YOUR FIRST HOME

    What Can My CPF Savings Pay For?

    How Much Of My CPF Savings Can I Use?

    WHAT YOU NEED TO KNOW

    Ordinary Account

    (OA)

    STA MP

    DUT Y

    Downpayment For The Property Purchase Housing Loan

    Taken For The Property Purchase

    can be used for:

    Home Protection Scheme Premiums

    (for HDB flats only)

    Stamp Duties, Legal Fees

    Loan Taken For The Construction Of Your House Or The Purchase Of Vacant Land

    (for private properties only)

    Your CPF savings cannot be used to pay for • The purchase price that is above market valuation • The minimum cash downpayment required for bank loans • Cost of renovation, and • Agent’s commission

    Limits have been put in place to encourage you to be prudent when buying a property and help you set aside more CPF savings for your retirement.

    Note: Di�erent limits apply if you buy a property which has a remaining lease of less than 60 years. Please refer to the brochure on ‘Using CPF for a property with a

    remaining lease of less than 60 years’ for more information.

    What Are The Limits?

    When you first use your CPF savings

    Valuation Limit (100% of purchase price or

    market valuation, whichever is lower)

    Withdrawal Limit (120% of

    Valuation Limit)

    HDB Loan No limit

    HDB Loan No limit if you set aside the

    Basic Retirement Sum. Up to Valuation Limit if you are unable to set aside the Basic Retirement Sum.

    New HDB Flat

    Resale HDB Flat / DBSS

    Bank Loan Up to Withdrawal Limit if you set aside the Basic Retirement Sum.

    Up to Valuation Limit if you are unable to set aside the Basic Retirement Sum.

    HDB Flat / DBSS / Private Property

    Type Of Property Type Of Housing Loan Applicable Housing Limits

    55 Years And AboveBelow 55 Years

    Have set aside the current Basic Retirement Sum in your Special Account* and Ordinary Account.

    Have set aside your Basic Retirement Sum in your Retirement Account, Special Account* and Ordinary Account.

    You and your co-owner may use both your Ordinary Account savings up to the Valuation Limit for the purchase of your property and/or for payments of your monthly housing loan.

    Once the Valuation Limit is reached, you can continue to use your Ordinary Account savings after meeting the following condition:

    SA* RA SA*OA OABRS BRS+ + +> >

    Valuation Limit of purchase price or market value of the property at the time of purchase

    Withdrawal Limit of CPF savings you can use if you are taking a bank loan.

    *Including amount withdrawn for investment.

    The Withdrawal Limit is currently set at 120% of the Valuation Limit. Once this limit is reached, you cannot use any more of your CPF savings. You have to use cash to service your outstanding loan.

    is the maximum

    amount

    is the lower

    Other Useful Tips

    TDSR < 60%

    CPF contributions

    Age

    Monthly Housing

    Instalment < 30%

    of your gross monthly income

    of your gross monthly income

    Monthly Income

    Monthly Income

    Your Total Debt Servicing Ratio (TDSR) should not exceed 60% of your monthly income.

    Keep your monthly instalment within 30% of your gross monthly income. As this is a long-term financial commitment, make sure paying for the monthly housing loan remains affordable.

    You should plan to pay off your housing loan before 55 or you may have to fork out more cash to service your monthly instalments in your later years.

    A mortgage reducing insurance will help pay for your outstanding housing loan in the event of unforeseen circumstances. If you are using your CPF savings to service your monthly instalments for your HDB flat, you are required to be covered under the Home Protection Scheme (HPS).

    Manage Your Housing Loan1

    Pay O� Your Housing Loan By 552 Be Insured Under A Mortgage Reducing Insurance3

    www.areyouready.sg CPF Board @CPF_Board CPFvideos

    ©Central Provident Fund Board. All rights reserved. www.cpf.gov.sg

    HPS

    Use the CPF Housing Withdrawal Limits Calculator on the CPF website to estimate when you will reach the Limits.

    https://www.cpf.gov.sg/Assets/members/Documents/Housing_PHS_Brochure.pdf https://www.cpf.gov.sg/eSvc/Web/Schemes/CpfHousingWithdrawalLimits/CpfHousingWithdrawalLimits https://www.cpf.gov.sg/Members/Schemes/schemes/housing/home-protection-scheme