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I'm currently not approved for a HDB loan and would like to seek advise to see if its worth it to appeal for one.

Suppose if I have $200K in my CPF and my new flat is about $220K, am I required to use up all my CPF and then top up with $20K cash? In that case do you think I should apply for a loan or should I just pay upfront?

My main aim is hopefully to have more cash for other things like renovation/home furnishing but it seems like in my case, whether or not I get a loan it does not affect my sales proceeds ie. I don't get more cash on hand even if I were to get a loan. Because even If I were to get, say, a $100K loan, the other $100K would still be tied up in my CPF, correct me if I'm wrong.
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1 Answer

Mike Lim
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Afternoon David,

For any purchase of HDB unit under HDB loan, your CPF OA will be wiped out, before HDB will disperse the balance amount out at mortgage loan to you. For bank loan, you can opt for the amount of CPF that you intend to use and top up the downpayment difference by cash, before using the mortgage loan from bank.

You are right in the sense that it's wiser to use up all your CPF for mortgage and keep more cash at hand as it's the liquidity that counts. You can also choose to pay your renovation and furnishing by cash, if you have no other intention of investing it somewhere else.

Do feel free to contact me if you require further discussion.

Regards
Mike Lim
 96929209 
CEA Reg No: R026708F
Email add: m52i@yahoo.com
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