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Hi gurus,
I have a question.
I am currently a sole owner of a 4room flat in TPY area.
I got the sole ownership after my Grandmother passed away a couple of years ago.

Now I would like to explore the possibility to buy 2nd property with my wife. My wife's name has never registered inside my current 4rooms property.

My questions:
1. As I am now still servicing the HDB loan, will I still able to get 80% of home loan for the new property, or just 60%? What if we register my wife as the sole ownership of the new property?

2. understand that in order to take out CPF monies to pay for downpayment, I need to set aside half of the min sum. But if my CPF is generating surplus, can I make use of the surplus to service the loan for the new property?

3. Alternatively my current outstanding loan with HDB is about 120k left. Should I paid it off, get the 80% new home loan and go for the 2nd property?

Any advice will be appreciated.
Thanks in advance.
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1 Answer

YT Tan (陈永达)
Replied
Hi Chris,

Seems like you have done your homework.

You are absolutely right that if you pay off your outstanding housing loan, you will be able to loan up to 80% of valuation/ purchase price of your second property. If not, it will be 60%. Whether to pay off anot, it depends on each individual. You should compare $120k and the possible 40% downpayment of your second property. Whichever is lower, you should probably choose that.

If the second property is under the sole ownership of your spouse, then the bank will assess her financial situation and then decide whether to loan her up to 80% but should not be a problem if she does not have an outstanding housing loan. If you think this might be an concern to you, I can introduce bankers and advise her on the possible loan amount that she can take up.

In regards to CPF, yes you have to set aside half of the minimum sum.

For more information on CPF, you can click on this link:
http://ask-us.cpf.gov.sg/explorefaq.asp?category=23098

If you have any doubts on CPF repayments, I will suggest to contact CPF board @ 1800-227-1188 for more clarifications.

Wish I will have the opportunity to assist you with your next property purchase. Hope to hear from you soon!

Warmest Regards,
YT TAN
District Consultant
R043025D
(M): 9111 5171 
(E): yt.lovelyhomes@gmail.com
(W): www.yttan.com
ECG Property Pte Ltd Read More
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