AskGuru Q&A Community

Get answers from PropertyGuru experts in 24 hours

Asked by
How does valuation limit works?

Say i buy a resale hdb flat with my sibling under joint singles scheme as first timers, our combined cpf is 135k and hdb loan granted to us is 200k. Total we would have 335k.

If we were to buy a 3room resale flat with valuation of $280000, will the valuation limit still apply as the flat price is way lower than the cpf+hdb loan that we have? Or if the valuation price is higher than our cpf+hdb loan, then how will the valuation limit comes in?

Ive tried figuring it after reading various articles but i cant make sense of it.
0 •
1109 views
Upvote Upvoted
Want this question answered?
Get faster responses from our experts by upvoting.
Be the first to upvote this question.

1 Answer

Grace Lee Siew Lian
Replied
Hi, let me do a financial estimate for you to better understand the scenario.
Assumig you bought a resale flat at $280 000 (at valuation price)
HDB loan obtained $200K (this can pay up up 90% of the valuation. so the maximum loan that you can take up will be $252 000.
To fund for this flat,
Loan $252 000
CPF $28 000
Stamp duty $2160 (Can use CPF)
Legal Fees $400 ( Can use CPF)
In this case, you can definitely afford a flat of this price.

In the event that the resale price is higher than the valuation, you will need to pay cash for the difference.
Hope I have help you to understand the situation better.

Feel free to call me for any further clarifications. My advise is that you engaged an agent to help you search for a suitable unit as it takes trained eyes to look for a suitable unit and help you to negotiate for a good price.

Thank you.

Best Regards,
Grace Lee Siew Lian
Associate Team Director
PropNex Realty Pte Ltd
CEA Reg No R050569F
Mobile 9173 0386 

Hope I have Read More
0
Upvote Upvoted

Still looking for answers?

Get answers from PropertyGuru experts in 24 hours

Ask Your Question
Previously Asked Questions