CPF is our version of forced savings in a way; so long as you’re a Singaporean/SPR, you’re more than likely to have a sum of money in your CPF account and while it’s meant for retirement, it’s also an avenue to purchase your house with.
The good thing about CPF is that, contrary to popular belief, you can still purchase a private property using your CPF funds. Here are 4 ways to do so:
Option 1: Paying the Purchase Price with CPF
When you’re purchasing a private property, the only option for a loan would be taking a bank loan. For private property buyers, this will mean that the downpayment for the loan would come up to 25% of the purchase price, of which up to 20% may be paid with your CPF OA savings.
Option 2: Repaying Housing Loans with CPF
Housing loans refer to the mortgage loan you take with the bank for the initial payment of the private property. This can be paid off with you CPF OA funds.
Option 3: Repaying Construction Loans/ Monthly Instalments with CPF
Similar to option 2, fees incurred during construction of the property/ any monthly instalments necessary can also be paid with your CPF OA funds. Do take note, this only refers to the payment of the loans for your construction fees, meaning to say that to use your CPF for construction purposes, you’ll have to use your own funds and/or a loan to meet the payments first, before using your CPF funds to pay for these loans.
Option 4: Paying Related Costs Incurred With CPF
Related costs in this aspect usually refer to fees such as Stamp Duty, Survey fees and Legal fees. These can also be paid with CPF monies.
While it may seem simple enough, CPF has a set of rules which governs your withdrawal limit for these funds. These rules are dependent on multiple factors such as the age of the youngest owner, the time of purchase of the property, the remaining lease tenure of the property and many more. To find out more, drop me a text and we’ll discuss your situation ;)
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