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Is it true that if the profits made from the selling of a current flat exceeds more than $50K, then half of the profits has to go back into CPF, ordinary account? Is it mandatory? For example, Current flat was bought at 250K , Sold at $450K . After topping back 250K back to CPF, the profits are $200K (including COV). Must I still put the half of the profits , i.e $100K , back into CPF? Anyway to avoid this if it is true?
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3 Answers

William Koh
Replied
Hi Mdm Jessie,

Where do you get this information from? It's not true.
You only have to top up back the CPF that you have contributed with interests, then minus off your outstanding mortgage loan, then the rest will be your cash profit.

Feel free to contact me if you have any further queries.

Cheers,
William Koh
 9027 1972 
willkck@gmail.com
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Mike Lim
Replied
Morning Jessie,

You might have being confused with the current ruling. Whatever amount that you have paid for your current unit in CPF, inclusive of interest, will be credited back into your CPF OA.

As for the cash profit, you are allowed to keep it unless you are purchasing another unit HDB unit using second HDB loan. It will not be put back into your CPF OA but to be used to off-set the amount of loan that will be disperse to you for the purchase.

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

Regards
Mike Lim
 96929209 
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  • JS
    Replied
    Hi, If I am purchasing another HDB unit using a second HDB loan, how much does HDB requires us to use the cash profits to offset for the new loan? Can't I just use whatever in my CPF OA to offset for the new loan without using my cash profits? The amount to offset for the new loan is determined by us or dictated by HDB?
Jaslin Poh
Replied
Hi Mdm Jessie,

For your same scenario & to apply for HDB loan w/o touching your cash profit is a no-no case.

The only solution is to apply for bank loan for your next purchase regardless of NEW/Resale flat. For bank loan, the procedure will be 5% cash & 15% CPF/Cash, follow by max loan of 80% if you do not have any outstanding mortgage loan.

Shall you have more queries, you may email me direct jaslin_poh@ymail.com

Regards
Jaslin
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