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Hi, would appreicate if you could answer our concern. We are buying a hdb flat at $415k. Valuation comes out to be $390k. Cov is at $25k.

The flat doesn't last us till 95 years old so the basis of cpf usage and housing loan is only $378300.

Our hle amount is $280900. It would be prorated from 280900 because the flat doesn't last us till 95 years old. It's 1.5yrs short till 95 years old.

We have a total grant of 60k and our total combine OA is 100k.

Could I know how much cash is needed excluding all the fees that is payable. It has been bothering us and we couldn't find answers to it. Will appreciate if anyone could answer this. Thank you in advance.
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1 Answer

Mani Subramanian Veeramani
Replied
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Disclaimer: This is just an estimate, and the actual costs could vary based on various factors such as the actual stamp duty payable and legal fees charged by the lawyer. To confirm Consult your financial planner.
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To estimate how much cash you would need for the purchase of the HDB flat. Here are the calculations:

Purchase Price: $415,000
Valuation: $390,000
COV: $25,000

Housing Loan Eligibility (HLE): $280,900

Maximum CPF Usage: $378,300
(This is based on the property not lasting till 95 years old)

Total Grants: $60,000
Total Combined CPF OA: $100,000

To determine how much cash you would need, we need to consider the following:

Down payment: The minimum down payment required for an HDB flat is 10% of the purchase price. In your case, it would be $41,500.

Cash payment: As the property does not last till 95 years old, your maximum CPF usage will be reduced to $378,300. To make up the shortfall, you will need to pay the difference in cash. Therefore, the cash payment would be $415,000 - $378,300 = $36,700.

Stamp duty: Stamp duty is payable on the purchase of a property. For an HDB flat, the stamp duty is calculated based on the purchase price or valuation, whichever is higher. In your case, the stamp duty payable would be $415,000 or $390,000, whichever is higher. The stamp duty rates are as follows:

First $180,000: 1%
Next $180,000: 2%
Remaining amount: 3%
Based on the purchase price of $415,000, the stamp duty payable would be $8,200.

Legal fees: Legal fees are payable for the conveyancing and other legal work involved in the purchase of a property. The fees can vary depending on the complexity of the transaction and the lawyer you engage. As a rough estimate, legal fees could range from $2,000 to $3,000.
Based on the above calculations, the cash needed for the purchase of the HDB flat would be approximately $88,400, which includes the down payment, cash payment, stamp duty, and legal fees. However, this is just an estimate, and the actual costs could vary based on various factors such as the actual stamp duty payable and legal fees charged by the lawyer.

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Disclaimer: This is just an estimate, and the actual costs could vary based on various factors such as the actual stamp duty payable and legal fees charged by the lawyer. To confirm Consult your financial planner.
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  • BT
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    I had a similar case recently bought a flat but still processing the paper work.
    Purchase Price: $520000
    Valuation: $495000
    COV: $250000

    Housing Loan Eligibility (HLE): $370000

    Maximum CPF Usage: $470000

    Total Grants: $100000
    Total Combined CPF OA: $60000
    property does not last till 95 years old
    Youngest buyers add up to 93yrs

    I'm confused about the shortfall they need to pay by cash, do I have to pay? Didn't heard before.

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