Hi,
1) Since you are purchasing a matrimonial home, you are not subject to ABSD. Only 2 PR scenario is subject to ABSD. As long as there is an SC in the component and purchasing a matrimonial home, no ABSD is charged.
2) Yes, you are eligible for a family grant ($40k), as well as a proximity grant & EHG if applicable. In the future, if your spouse decides to become SC, you also eligible for a step-up grant of $10k.
3) Now you know that you are eligible to purchase a flat, and no ABSD involved. You should next look into all resources you have on hand before your home search journey.
4) Do not over budget, or you might lose money for not able to exercise the OTP, or unable to pay this essential item.
(a) Check your & your spouse's CPF Original Account (OA) to see how much you have.
(b) Since you are Singapore Citizen, you will be able to apply for an HDB loan (HLE). Therefore you only need to prepare a 10% downpayment to purchase any flat type. This 10% can be all CPF.
(c) There is also a cash portion that you have to work out, such as a deposit for an OTP (Option-To-Purchase), OTP exercising fee. This amount can be up to $5,000. And other miscellaneous that need to consider as well. You have to prepare at least $6k including the deposit & exercise fee.
(d) Do not forget to include Buyer stamp duty & legal fee, although this can be pay using CPF. You have to ensure after paying for the 10% downpayment, you still have a sufficient amount for these 2 items. Because these 2 items are one of a higher amount.
e.g. $400,000 purchase price, stamp duty is $6,600, legal fee $797, mortgage stamp duty = $500, home protection insurance $256.80. Total amount = $8,153.80.
(e) Cash-Over-Valuation (COV): I have to remind you to take extra care in today's market, that COV is coming back. Thus practice due diligence before committing. As this will eat into your cash budget.
Hope the above answer to 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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