Hi
Do note that when purchasing flat that cannot last the youngest buyer till 95years of age, CPF valuation limit, LTV (loan to value) if taking HDB loan and EHG grant will be pro-rated. From my experience serving HDB buyers, LTV and EHG grant would not be an issue for as most buyers did set out adequate buffer on their budget. For CPF valuation limit unlike COV, CPF board does not require one to top up the difference in cash immediately even if one CPF valuation limit is pro-rated. What would happen is that your CPF valuation limit will be exhausted at some point during the loan tenure and you are no longer allowed to use your CPF for monthly mortgage even if you do have sufficient CPF savings. You may consider selling your flat then and purchase a new one and your CPF valuation limit will be reset back to enable you to use your CPF savings to finance your loan. I know this is a confusing concept for most people. I am specialised in HDB transactions and have assisted a few of my buyer in purchasing for them a house that could not last them till 95 years. In these cases, a very detailed calculation have to be done and they are informed before hand on the risk involved. I would like to elaborate more on this if given a chance. I am specialied in HDB transactions and a vast majority of my clients managed to secure a house without any COV despite the seller's market situation nowadays. Do contact me at
93375051
for a free and non obligatory discussion on this.
Regards
Taufik Hussein
CEA Reg No: R061607B
Marketing Director
ERA Realty Network Pte Ltd
Contact No:
93375051
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