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HDB Owner click here to check requirements
Stamp fees
are payable (by the buyer) on the sale and purchase agreement
and the mortgage.
A simple way of calculating the stamp fees on a sale and purchase agreement is to multiply the purchase price by 3% less $5,400.00
EXAMPLE: Purchase Price = $500,000.00
1 st $180,000 x 1% = $1,800
2 nd $180,00
x 2% = $3,600
Thereafter
3% x $140,000 ($500,000 - $360,000) = $4,200
Total ($1,800 + $3,600 + $4,200) = $9,600
or 3% x $500,000 = $15,000 - $5,400 = $9,600
The CPF Scheme applies only to properties in Singapore which are on freehold land or have remaining
leases of less than 60 years but at least 30 years.
Can I use my CPF savings to pay the downpayment for the property?
For properties bought on or after 19 July 2005, you may use your CPF to pay the purchase price of
the property after you have paid the first 5% of the purchase price in cash.
If you are buying an Executive Condominium and are
eligible for the Housing Grant, you can use the grant to pay the downpayment at the time of signing the Sale and Purchase Agreement
and after you have paid the 5% cash payment. However, further CPF, if any, can only be released after you have paid all the
cash difference.
How and when will the CPF savings be released?
The Board will release the CPF savings only on completion
of all legal documentation, and after you have paid the 5% cash payment. You would also need to settle the cash difference
between the purchase price and your CPF lumpsum and the loan. The Board must also be able to lodge a charge on the property.
Can I use my CPF savings to pay the legal and
stamp fees?
Yes, you can use your CPF savings to pay the outstanding
legal and stamp fees if you apply to use CPF to buy the property. However, CPF savings cannot be used for the monthly service,
conservancy and other charges relating to the use of the property.
USE OF CPF TO PURCHASE MULTIPLE PROPERTIES
Can I use my CPF to purchase second and
subsequent properties?
Yes, you may use your CPF to purchase second and
subsequent properties. However, for properties purchased on or after 1 July 2006, we would require you to set aside the Minimum
Sum cash component first before you can use your CPF to buy the second and subsequent properties.
If I purchase my second and subsequent properties
after 1 July 2006, how much of my CPF can I withdraw for my second and subsequent properties?
The CPF withdrawal would be capped at 100% of the
Valuation Limit (VL) of the property (for properties with at least 60 years of lease). VL is the lower of the purchase price
or valuation price of the property at the time of the purchase. For properties with more than 30 years but less than 60 years
of lease, the withdrawal limit would be determined based on the age of the co-owners and remaining lease of the property.
Please refer to Annex B for the details.
I owned a HDB flat and intend to purchase a private
property after 1 July 2006. Do I also need to set aside the Minimum Sum cash component before I can use my CPF?
Yes. However, the Board will allow a grace period
for you to sell off your HDB flat. The grace period is as follows
{i) If you are buying a completed property - you
will be given a grace period of six months to sell off one of the properties; or
ii) If you are buying a property still under construction
– you will be given a grace period of 6 months from the issuance of Temporary Occupation Permit (TOP) to sell off one
of the properties. After the grace period, CPF withdrawals will be stopped for the newest property purchased, if you do not
meet the Minimum Sum cash component requirement.
HOW TO APPLY
How do I apply to use my CPF savings to buy a
residential property?
You need to complete an application via “my
cpf Online Services” for the withdrawal of your CPF savings. Alternatively, you can authorise your lawyer to submit
it on your behalf.
Your application should be accompanied by a valuation
report prepared by a licensed valuer. If your application is approved, the Board will send you a Letter of Approval 8-10 days
after receiving your application form giving in-principle approval for the use of your CPF savings. Your case will then be
referred to the Board's solicitors to prepare the legal documents.
You should instruct your solicitors to provide the
Board's solicitors with all the necessary information and documents to complete the legal documentation. Your CPF savings
will be released through the Board's solicitors after all documentation have been completed. Legal documentation normally
takes 6 to 8 weeks.
CPF Loan Affordability Calculator
If you are buying a property for the first time, you may wish to consider the following before
committing yourself to the purchase.
1. Check your eligibility
Make sure you are permitted by law to buy the property you want. Non-Singaporeans
are only allowed to buy properties classified as condominiums or apartments that are at least six storeys high. If they wish
to buy landed property, they must apply to the Controller of Residential Property for permission.
2. Check your financing
a. Cost of property
The total cost of purchasing a property is approximately 105% of the purchase price,
including the stamp and legal fees.
b. Getting a financier
Decide on your financier. It could be a bank or a finance company. Ask the loan officer to advise
you on the alternative funding arrangements you can have. Most CPF members fund their purchase as follows:
Member's CPF savings + Housing Loan + Own Cash = Purchase Price
Once you have decided on your funding arrangements, discuss with the loan officer the amount of
CPF savings you would like to use for the property, the amount you need to borrow from the financier, and the amount of cash
you have to use.
c. Quantum of loan
Currently, the maximum housing loan should not exceed 80% of the purchase price or valuation of
the property, whichever is lower. This 80% includes the CPF savings used to pay for the property but not the CPF used to pay
the second 10% downpayment, stamp duty and other related legal fees. You would therefore need to ensure that you have enough
cash to meet the balance of the purchase price.
3. Buying a property
It would be good to know the range of property you can afford after checking with your financier.
Next, you need to engage a lawyer to advise you on the process of buying a property and later, to handle the legal documentation.
a. For a completed property
Once you have made an offer to the developer or seller to buy the property, you would be asked
to make a downpayment (usually 1% of the purchase price) and sign an Option to Purchase. The Option gives you the exclusive
right to buy the property for a limited period. During this time, your lawyer will do a preliminary search on the property.
If you decide to proceed to buy the property, you must exercise (accept) the Option by paying the
balance of the downpayment (usually 10% of the purchase price including the 1% paid earlier when you signed the Option) within
the period stipulated in the Option. This is to confirm your intention to buy the property.
Your lawyer will advise you on the legal procedures and follow up with the developer's or seller's
lawyer on the Sale & Purchase Agreement, legal documentation for the use of your CPF savings and housing loan, payment
of the balance of the purchase price, etc.
b. For a property which is still under construction
Upon selection of the property, you will usually have to pay 5-10% of the purchase price for the
Option to Purchase from the developer. The balance of the purchase price will be paid according to the schedule of progress
payments set out in the Sale & Purchase Agreement.
As in the case of buying a completed property, your lawyer will advise you on the legal procedures,
payments and documentation. Note: The information in
this Annex serves as a guide only. Members should seek advice from their lawyers, financiers or housing agents if they need
further clarification.
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[Read "New Rules" on changes to 5% Cash
Down payment and Ninety %Loan - wef July 5]
The Available Housing Withdrawal Limit
(AHWL) is 80% of the gross CPF savings in your Ordinary and Special Accounts in excess of the prevailing Minimum Sum
(currently $84,500) or the available Ordinary Account balance after setting aside the Minimum Sum cash component, whichever
is lesser. Gross savings include savings already withdrawn for housing, education and investments. |
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The following examples show how the additional
CPF amount is computed when the 100% Valuation Limit is reached. The computation is based on 144% Valuation Limit and the
current Minimum Sum of $84,500 (of which the cash component is $42,250.) |
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| Purchase Price |
= $570,000 |
| Value of property |
= $550,000 |
| Valuation Limit |
= $550,000 | |
| |
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|
| Ordinary Account balance |
(a) |
50,000 |
50,000 |
| Special Account balance |
(b) |
37,250 |
17,250 |
| Amount withdrawn for housing |
(c) |
550,000 |
775,000 |
| Investment (OA) |
(d) |
100,000 |
100,000 |
| Education |
(e) |
22,250 |
22,250 |
| Gross savings [(a)+(b)+(c)+(d)+(e)] |
|
759,500 |
964,500 |
| Less Minimum Sum |
|
84,500 |
84,500 |
| |
(f) |
675,000 |
880,000 |
| 80% x (f) |
(g) |
540,000 |
704,000 |
| Available Ordinary Account savings(after setting
aside Minimum Sum cash component of $42,250 in Special and Ordinary Account) |
(h) |
45,000 |
25,000 |
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|
|
|
| AHWL [lower of (g) or (h)] |
(A) |
45,000 |
25,000 |
| Or |
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CPF Withdrawal Limit
(i.e. 144% Valuation Limit) |
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792,000 |
792,000 |
| Less |
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|
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| Amount already withdrawn for housing |
|
550,000 |
775,000 |
| Balance CPF Withdrawal Limit |
(B) |
242,000 |
17000 |
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| Additional CPF that can be withdrawn
to pay the loan - lower of (A) or (B) |
|
45,000 |
17,000 | |
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With effect from 1 September 2002, you may
use your CPF to pay the second 10% down payment of the private property at the time of signing the Sale and Purchase
Agreement The first 10% down payment, however, has to be paid in cash. |
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If you are buying an Executive Condominium
and are eligible for the Housing Grant, you can use the grant to pay the second 10% down payment on completion of all legal
documentation. Please check with HDB on the Housing Grant eligibility. |
Housing & Developers Control & Licensing Act here
Amendments to standard Option & S&P
Regarding Bridging Loan
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