AskGuru Q&A Community

Hi,

When you decouple as the outgoing owner, the OA you have utilized for the property needs to be refunded into your account and the remaining owner needs to be able to finance the property on his/her sole name. You need to set aside 80.5k in your OA+SA before you can use excess CPF OA monies for 2nd property. In your case you already fulfill the criteria.

It will be ideal to do some financial planning and map out your objectives and how we can achieve it. May I understand your plans further so to make better recommendations? Thanks and look forward to value-add to your housing plans.

Warm Regards,
Ivan Ng ERA ASAP
(ASk Anything Property)
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Dear Sir/Mdm,

1. If you were to decouple, then you will not be restricted to satisfy half the minimum sum in your OA and SA as this is only applicable for your 2nd property. Therefore it is advisable for the decoupling as you will also save on the Additional Buyer Stamp Duty (ABSD) of 7% as well!

2. For CPF usage, it will depend on the rules and regulations then and therefore I am not able to advise on this issue.

Please feel free to contact me so that I can understand your needs further and provide you with assistance.

Regards,
Nick Tan
(M) +65 9644 4854 
B.Eng(Chemical)(Hons)(NUS)
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(W) www.nick-tan.com

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Once again, Good Day Ms. Buyer J and thank you for your queries,

It appears that you may be comparing refinancing and decoupling based on the queries you have posted. Should you require a more detailed cost analysis for different scenarios, please feel free to contact me directly and I would be more than happy to go through in details with you.

1. In decoupling, when your name is taken out from the ownership of the first and only property you will be required to refund the CPF used including accrued interest. You may then reutilise your CPF OA in full (No minimum sum required if below 55 years of age) for a new first private property under your sole name while receive savings of up to 7% on ABSD if you are a Singapore Citizen.

Do also take note of the following during decoupling:
a. Buyer Stamp Duty (BSD) (3% -$5,400) applicable on the part share of the property market value being transferred to the remaining owner(s)
b. Legal fees of around $5,000
c. Remaining owner(s) need to requalify for remaining loan/refinancing based on the latest income, age and 60% TDSR.

2. Should the current CPF rulings remain the same when you reach 55 years of age in 15 years’ time and your CPF savings enough to cover the prevailing Basic Retirement Sum (BRS) with sufficient property pledge or Full Retirement Sum (FRS = 2xBRS), you may choose to do the following:
a. Withdraw the amount above the BRS/FRS in Retirement Account (RA) to pay off the remaining loan amount.
*The amount transferred to RA will determine the monthly payout amount for life you receive from CPF when you turn 65 years of age.
b. Apply to set aside some OA savings to pay for the remaining monthly mortgage repayment before they are transferred to your Retirement Account (RA)
c. Keep more in CPF RA, Enhanced Retirement Sum (ERS=3xBRS) to get more monthly payout for life from CPF when you reach 65yo and use salary or rental income to cover the loan repayment

The decision you make then may be influenced by the prevailing Mortgage interest rate vs CPF interest rate + CPF Monthly Payout after 65yo vs Income + Rental Income + Lifestyle choice. More info here: https://www.cpf.gov.sg/Members/Schemes/schemes/retirement/cpf-withdrawals-at-55-years-old

As we do not get prompted when you respond here, kindly contact us directly should you require additional information.

Thank you and have a pleasant week ahead.

Warm Regards,
Karrien N. Chan
CEA Reg. No.: R052532H
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Email: karrien.realty@yahoo.com

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Hi,

Before decoupling, you need to check with the housing loan bank whether individual financial status are eligible to take over the other parties portion of the property.

Feel free to engage me as your agent. I can assist you based upon your stated contents and walk you through the entire process with options.

Call me now, we can explore further in detail.

I am contactable at 92222389  or onassis@sgrealtor.com / sgagent.com

In all Areas of Singapore. Sale/Buy/Lease/Rent, Please call and/or drop me an email me. I’m always at your Services.

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ACTA (Full); PDCE (Singapore); MSc BIT(Middlesex); BBA (South Australia)

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