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Mon, 02/18/2008 - 17:21
How do we buy property using CPF money?
Correct me if i'm wrong,
To be eligable for house (talking about HDB houses), you have to be either married or 35 and above. Purchasing a house thru HDB and financing it thru a HDB loan whereby you pay HDB back via your CPF OA account monthly.
For private houses, i'm not very sure. Any one have any idea or is it similar to above?
The CPF provides a Residential Property Scheme (RPS) which i think can be used to buy private property and sometimes more than one property
There's a withdrawal limit on the scheme and as deathsender mentioned about the HDB loan, there's eligibility conditions on the type or property and loan etc
The CPF provides a Residential Property Scheme (RPS) which i think can be used to buy private property and sometimes more than one property
There's a withdrawal limit on the scheme and as deathsender mentioned about the HDB loan, there's eligibility conditions on the type or property and loan etc
Currently, can chose either 20% or 10% downpayment using CPF for HDB flat. And you must have a family nuclear (husband/ wife or parent/ child or single >35yrs). And remember combine income must be less than 8k to get the HDB loan and rights to purchase of a HDB flat.
CPF can also be use to pay for private, I do not have the latest number, but I remember its 50/50 using CPF and cash for the downpayment. But might have change since recently due to the property boom the gov change it.
And lastly, CPF can now only use to finance 1 house (either HDB or private) because many uncle/ aunties used to finance more than 1 and end up no money left for retirement.
Hope someone can provide more information
It is also important to do some planning before buying property as the contribution rate to CPF changes according to our age.
Based on current ruling and regulation, the first 60k in your OA, SA & Medisave can't be touched except for education and housing. Theres not really much choice for the working people now.
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Contest theory: More entries = More chances - Concept of Probability.
Time & Tide waits for no Man.
Yes, new rulings on CPF plus a couple of eligibility criteria one has to meet to apply for loans too. vic84 is right, it helps to plan, & see the full picture. Since one only can take a HDB loan 2x in his lifetime, take it wisely!
A couple of useful links:
DBSS Financial Calculator
Financial Planning
HDB Housing Loan
CPF Calculators esp Home Affordability Calculator!
Would be great to have all these checked out before thinking of getting some property =)