Hi Mr. Zhi Hao,
1) Your age + remaining lease of 62 = 100, which is higher than 95 yrs.
2) As long as it is at or higher than 95, you are allowed to fully utilize your CPF funds according to the rules listed:
(a) HDB loan: 100% withdrawal limit of the valuation value
(b) Bank loan: 120% withdrawal limit of the valuation value
3) I'll give an example to explain further the implication. For example, this flat is $500k. If you have $500k in your CPF account now, you can use all of this $500k to pay for the flat. Then there will not be any implication.
4) If you are taking a mortgage loan for 25 yrs at an interest rate of 2.6%? I'm rounding it to the nearest thousand for easier illustration.
Your needed total payment would at the end of the 25 yrs would be $579k after placing a 15% down payment.
Your loan would be $425k and interest is $154k. You are to pay this $154k using cash only because you are only allowed to utilize $500k (100% withdrawal limit).
5) Thus it would be wise to reduce your number of loan tenure or to regularly repay in a lump sum to minimize the impact of needed to use full cash for the monthly mortgage.
Hope the above answer 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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