Asked by Ms Carol
I've enquiries on the purchase of resale HDB flat for planning on how much COV i can afford:
Scenario:
* Buyer with CPF OA of $250,000 (within CPF withdrawal limit) and has intention to fully utilize the CPF for the resale flat purchase, intends to take bank loan to finance the purchase.
* Purchase price = $450,000, Valuation price = $400,000
* COV = $50,000
* Maximum loan limit (80% of valuation) = $320,000
I understand that general financing is as follows:
Cash 5% = $20,000
CPF 15% = $110,000
Loan 80% = $320,000
(Q1) Where does the COV of $50,000 fall under?
(Q2) If the buyer wipes out the full CPF OA of $250,000, how much upfront cash is required?
(a) $70,000 (COV+5%), bal thro' CPF & loan
(b) $20,000 (5% only, no separate cash required for COV), bal thro' CPF & loan
(c) $50,000 (COV only, 5% incorporated), bal thro' CPF & loan
To Ignore other expenses like admin fee, valuation fee, caveat fee, insurance, commission, stamp and legal fees at this juncture. Thanks
Scenario:
* Buyer with CPF OA of $250,000 (within CPF withdrawal limit) and has intention to fully utilize the CPF for the resale flat purchase, intends to take bank loan to finance the purchase.
* Purchase price = $450,000, Valuation price = $400,000
* COV = $50,000
* Maximum loan limit (80% of valuation) = $320,000
I understand that general financing is as follows:
Cash 5% = $20,000
CPF 15% = $110,000
Loan 80% = $320,000
(Q1) Where does the COV of $50,000 fall under?
(Q2) If the buyer wipes out the full CPF OA of $250,000, how much upfront cash is required?
(a) $70,000 (COV+5%), bal thro' CPF & loan
(b) $20,000 (5% only, no separate cash required for COV), bal thro' CPF & loan
(c) $50,000 (COV only, 5% incorporated), bal thro' CPF & loan
To Ignore other expenses like admin fee, valuation fee, caveat fee, insurance, commission, stamp and legal fees at this juncture. Thanks
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