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Hi,

1) According to the withdrawal limit from the CPF OA when using the following loan types when the flat can last you till 95 yrs old:
(a) HDB loan = maximum up to 100% of valuation
(b) bank loan = maximum up to 120% of valuation

2) The pro-rate is applicable to the CPF usage thus the effect is the same on the bank loans.

3) You may use all funds available in your CPF OA for the down payment.
4) If you are using the HDB loan, all funds in your CPF OA except $20k can be reserved in your account. This is to reduce your monthly mortgage payment.
5) If you are using a bank loan, then the bank will loan you a maximum of up to 75% of the valuation value. Any fund not utilized from your CPF OA can be used for the monthly mortgage.
6) You may utilize all funds available in your CPF OA for the monthly mortgage until $425k is used up in the HDB loan case.
7) Whereas you can use up to $450k in your CPF OA for the monthly mortgage until it is fully utilized.
8) Interest for HDB loan is $153k, interest for the bank loan is $135k (this is just an estimation for comparison using the same rate as the HDB of 2.6%)
9) This interest incurred from the loan will need to be paid using cash. If you are using a certain amount of cash for your monthly mortgage it should be fine.
10) You properly won't see the effect on the withdrawal limit unless it is a very drastically large gap in the lease apart from 95.
11) It is very difficult to use an example to illustrate as each individual has a different payment plan.

Hope the above answer your main concerns, but if there are more query, please feel free to contact me at 90110636  , or email: ling.ck7@gmail.com if more information is needed.
I'll be glad to assist.

Best regards
Ling CK
 90110636 
ling.ck7@gmail.com
https://R056727F.propnex.net/
https://www.facebook.com/Homesellerbuyer

Note:
Any response to our answer does not reach us until we scroll through each and every query posted daily.
The best way to get a follow-up is to Whatsapp or email us directly. Read More

Hi,

1) According to the withdrawal limit from the CPF OA when using the following loan types when the flat can last you till 95 yrs old:
(a) HDB loan = maximum up to 100% of valuation
(b) bank loan = maximum up to 120% of valuation

2) The pro-rate is applicable to the CPF usage thus the effect is the same on the bank loans.

3) You may use all funds available in your CPF OA for the down payment.
4) If you are using the HDB loan, all funds in your CPF OA except $20k can be reserved in your account. This is to reduce your monthly mortgage payment.
5) If you are using a bank loan, then the bank will loan you a maximum of up to 75% of the valuation value. Any fund not utilized from your CPF OA can be used for the monthly mortgage.
6) Taking an example of a $500k flat. You may utilize all funds available in your CPF OA for the monthly mortgage until $425k is used up in the HDB loan case.
7) Whereas you can use up to $450k in your CPF OA for the monthly mortgage until it is fully utilized.
8) Interest for HDB loan is $153k, interest for the bank loan is $135k (this is just an estimation for comparison using the same rate as the HDB of 2.6%)
9) This interest incurred from the loan will need to be paid using cash. If you are using a certain amount of cash for your monthly mortgage it should be fine.
10) You properly won't see the effect on the withdrawal limit unless it is a very drastically large gap in the lease apart from 95.
11) It is very difficult to use an example to illustrate as each individual has a different payment plan.

Hope the above answer your main concerns, but if there are more query, please feel free to contact me at 90110636  , or email: ling.ck7@gmail.com if more information is needed.
I'll be glad to assist.

Best regards
Ling CK
 90110636 
ling.ck7@gmail.com
https://R056727F.propnex.net/
https://www.facebook.com/Homesellerbuyer

Note:
Any response to our answer does not reach us until we scroll through each and every query posted daily.
The best way to get a follow-up is to Whatsapp or email us directly. Read More