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Hi, I would like to ask regarding the 5% that need to be pay in cash if i took the bank loan. This 5% is the loan amount borrowed or the purchase hdb price that i going to buy?

Example:
Bank loan me $200K and i bought a hdb flat at a price of $400K. in this case i have to pay 5% in cash for $200K or $400K?

Thanks.
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2 Answers

Hi,

Using your example, if the loan is only 200k, and flat price is 400k, the difference will need to be top up by a combination of cash and cpf. If there's not much CPF, the cash outlay will be more than 5%. Thanks and hope to understand your plans better so to make better recommendations. Hope to discuss further.

Warm regards
Ivan ERA
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  • MO
    Hi Ivan,

    Thanks for the prompt reply. May be you miss understood my question. Let me rephrase the question. I understand that bank loan will only give us 80% max loan and 5% need to be paid in cash and the rest can be paid by cpf.

    Considering that i have enough cpf in my ordinary account + the $200K bank loan and buy a hdb flat. The 5% is base on bank loan or purchase price?

    Regards,
    thanks.
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