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Hi Gurus,

I currently own HDB flat and am thinking of purchasing a private condominium as am no longer eligible to purchase an EC.My HDB house is not fully paid and I intend to sell it upon completion of the condo. Question is, at the moment, how much of my CPF can I use to pay for the condo? Details of my balances are as follows. Can I use the full amount that is currently available in my ordinary account? Thanks!

Total current CPF balance (Ordinary) - $160k
Outstanding HDB - $190K
Total CPF already paid to HDB - $205k
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3 Answers

Hi,

Firstly you must have met your MOP before you can purchase private condo. Since you have decided to sell your HDB, you should strongly consider to sell your HDB first before purchasing your condo so you can utilize your CPF OA fully, and also since it takes a longer time to find a buyer in current market.

If not, If you do not sell first, you must set aside 77.5K in your OA for minimum sum before you can use OA for property. The former method is more favourable. Thanks and hope to assist with your housing plans further.

Warm regards
Ivan ERA
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  • AU
    Hi,

    the 77.5K that you mentioned is minimum sum?

    If yes, then I believe you are incorrect based on the following CPF's statement?

    "However, if you intend to sell your e
    xisting property, the Board will allow a grace period for you to sell
    off your existing property. During the grace period, the rule to set aside the Minimum Sum will not
    apply. The grace period is as follows:
    (i) If you are buying a
    completed property

    a
    grace period of six months will be given to
    you to sell off your existing property; or
    (ii) If you are buying a
    property still under construction

    a grace period of six months from
    the issuance of Temporary Occupation Permit (TOP) will be given to you to
    sell off your
    existing property."

    Taken from http://mycpf.cpf.gov.sg/NR/rdonlyres/70E8BE28-4305-4A39-BDF7-EA6D292E0408/0/Housingwithdrawallimit.pdf.

    Secondly, if I sell off my HDB first, where am I going to stay then since the condo, at launch, will easily take 2 yrs to complete?
YT Tan (陈永达)
Good afternoon buyer,

It's great hearing from you.

Btw do take note you have to fulfil minimum occupation period first before you can purchase a private property.

I assume you are looking at new launch?

Since the purchase will be your second property, you will be subject to additional buyer's stamp duty (you can apply for ABSD remission if you qualify), need to set aside minimum sum of $77.5k in your CPF OA+ SA first before you can use the excess (because you have utilised CPF OA funds in current property) and only able to obtain a max 50% bank loan because you still have an outstanding loan (can sign an undertaking letter with a bank stating that you will sell off your HDB within stipulated period to obtain a 80% loan).

Hope my explanation helps!

Maybe you can share more information with me so I will be in a better position to advise you.

Hope to hear from you soon!

Warmest Regards,
YT TAN 陈永达 | ACCA Graduate, RES
Vice President (Agency)
R043025D
Property Avenue Pte Ltd
Estate Agent no. L3010650D
Blk 420 North Bridge Road #03-30 North Bridge Centre S188727

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(E): yt.lovelyhomes@gmail.com
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(W): www.propertyavenue.com.sg Read More
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Hi,

In your case, you need to be guided step by step; and have someone assist you on the progressive payments and financial cash flow calculations timeline; with the utilization of cash and CPF. Do contact me, should you need a comprehensive explanation and guidance on your purchase! Moreover, purchase of private property incurs no agent fees anyways!

Visit my website to view all my recent accolades - esteemed awards and testimonials to gather more information on me: www.kumarrai.com

D Kumar
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ERA Associate Division Director
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