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Good morning,

Decoupling will take place only when you hit MOP. All the procedures will be based on the valuation when you decouple.

If your case of decoupling, the 1% outgoing party will sell off his 1% to 99% staying party therefore there will only be one owner. If there's only one owner, the loan will be under 1 sole name instead of 2 after decoupling.

Therefore it will be good to confirm that the 99% staying party has the financial capability to take on the loan himself before proceeding with decoupling.

Decoupling actually is like a mini version of a property sale. It can involve up to 75% bank loan, min 5% cash downpayment and balance 20% cash or cpf d/p. And not to forget about the stamp duty payable.

Usually the owner with lesser ownership is advisable to use as minimal CPF OA funds as possible cause if the CPF utilised exceeds the 1% value (for example), staying party might not be able to use all his CPF and might need to fork out cash for the difference if any.

So part share of 99-1 might not always be the best option. It could be 90-10/ 80-20 etc so staying party can use more CPF OA funds to pay outgoing parting for decoupling transaction based on the value.

When will your MOP be up? We can do a re-assessment prior to MOP.

Hope my sharing helps in aiding in your enquiry. May I know how can I value add further in your property needs?

Best regards,

YT Tan
Property Kaki
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Hi,

1) 99% party must have the financial capacity to take over the full loan amount to continue serving the mortgage.
I'll give a general illustration using an example below:
Current EC valued at $1M. You together already paid off $500k.

Assuming 99% party has the capacity to get a max loan for the whole house using TDSR assessment which is $1M. Because the bank can loan up to a max of LTV if valued at $1M. Meaning the highest loan available is $750k.
The buyer will only need to continue to service the loan of $500k without coughing out the 25%.

The amount that 99% party will need to pay are:
(a) $10k (1%)
(b) outgoing party's CPF utilized + accrued interest
(c) Buyer stamp duty of 1%
(d) Legal fees

The amount that 1% party will need to pay are:
(a) outstanding loan (1% of the $500k)
(b) Legal fees

Note that the tabulation above is not to the exact amount just for illustration purposes.

Hope the above answer to 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

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Hi,

When MOP is reached, you can do the decoupling and purchase the 1% from the outgoing owner. Based on the market valuation then, the relevant Buyer stamp duties will be applicable on the market value of this 1% share, and you also have to refund the outgoing owner's CPF utilized + accrued interest. In this sense, it may be good to use less CPF so the accrued interest will not go up too fast, resulting in less cash proceeds when you do the decoupling.

The remaining owner must also be financially equipped to take over the full entire home loan on his/her own income basis before the bank can approve the decoupling. This is because only owners can be the borrowers of the loan. Do note some penalties may apply if you redeem the loan within the lock in period.

There are also legal fees of approx 5k for this decoupling process.

May I have more info and requirements about your plans so to make better recommendations? Thanks and look forward to value-add to your housing plans.

Warm Regards,

Ivan Ng Realtor
ERA Senior Marketing Director
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Hi,

Yes, you're right in the sense that by decoupling, the remaining party has to refund the outgoing party's CPF plus accrued interest. Hence, it makes sense for the eventual outgoing party to use as little CPF as possible for the property.

Upon decoupling, the remaining party will have to undertake the balance loan amount based on his individual TDSR, and any shortfall will have to be topped up using Cash/CPF. Stamp duty is also payable for the transfer of shares.

I am experienced and well-versed in both HDB and private transactions. I will be able to assist you in your property plans. Please get in touch with me for a more in-depth discussion.

Should you need require further assistance in matters relating to property, please contact me at my mobile 9748 6305  . I will be happy to assess and share with you the possibilities for you in the current market.

Thank you.

Best regards,
Robbie Chen
 9748 6305 
PropNex Realty Read More

Hi Sir/Madam

I will be glad to assist
Appreciate if you can contact me at (65) 96608508  with details of your unit
or click here https://bit.ly/WaSilvia to whatsapp me for no obligation discussion
Thank you.

Warmest regards,

Silvia Yang

Senior Marketing Director
ERA Realty Network Pte Ltd
Mobile: (65) 9660 8508 
Email: Silviayang8@gmail.com Read More

Dear Sir/Mdm,

When decoupling, the staying party (99) must ensure that he or her income is sufficient to support the loan as the staying party will need to take over the whole loan. For the 1% outgoing party, the staying party will not be able to secure a loan to purchase the 1% share and therefore will need to use cash to purchase the 1% and also to repay the CPF plus interests that outgoing party have used so far.

I will be happy to do up an excel table to give you an overview of the figures so that you can have a better picture.

Regards,
Nick Tan
(M) +65 9644 4854 
B.Eng(Chemical)(Hons)(NUS) / Cert-in-REA
(E) nick96444854@gmail.com
SEAA Salespersons Achievement Platinum Award 2020

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Hi The staying party will have to be eligible to take over the remaining loan, pay off 1% in cash/cpf (if any). Do contact me at 97970200  to discuss more on your options

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