Purchase of Flat with Bank Loan - CPF

Q	If I am taking up a bank loan for my HDB flat, how much of my CPF can I withdraw towards the payment of the loan?

A

You can use your Ordinary Account savings, and the future monthly CPF contributions in this account to buy a flat and/or pay the monthly instalments of the housing loan up to 100% of the Valuation Limit (VL). The VL is the lower of the purchase price or the value of the flat at the time of purchase. If your housing loan is still outstanding when the total CPF usage for the flat reached the VL and: you are below the age of 55, you may continue to use your Ordinary Account savings to repay the housing loan up to the applicable Withdrawal Limit if you can set aside the current Basic Retirement Sum. you are 55 years and above, you may use the excess Ordinary Account savings to repay the housing loan up to the applicable Withdrawal Limit if you can meet your Basic Retirement Sum. You can refer to the Retirement Sum Scheme for more information.   The Withdrawal Limit is the maximum amount that you can withdraw towards the flat and it is determined based on the date of the property purchase as follows:

Q	Can I use my CPF savings to pay the downpayment for an HDB flat financed by a bank loan?

A

You may use your Ordinary Account savings to pay for the property after you have paid the following in cash: (a) minimum cash downpayment of at least 5% of the valuation limit(VL)*# and  (b) the portion of the purchase price that is above the market value of the property after taking into consideration the CPF lump sum and the housing loan. * VL is the lower of the property price or property value at the time of purchase.  # You may refer to MAS website at www.mas.gov.sg for more information on the minimum cash downpayment that you have to pay.

Q	Can I use my CPF savings to pay 1) the transaction fee levied by the lawyer's appointed bank and 2) the lodgement fees levied by Singapore Land Authority for the holding and disbursing of my CPF moneys and/or cash when I buy an HDB flat?

A	Yes, you can use your CPF savings to pay the transaction and lodgement fees incurred. For more information on these costs, please check with your lawyers or visit www.conveyancing.sg.

Q	I plan to buy a HDB flat but do not have sufficient savings in my CPF Ordinary Account for the purchase. I am selling my existing flat and am expecting a CPF refund. What should I do?

A

You can consider taking a bridging loan from any banks, subject to both HDB and your financier’s approval. When your CPF savings are refunded upon the sale of your existing property, you can repay the bridging loan after completing the legal documentation and settling any cash difference. The above is only applicable if you are financing the flat solely with a bank loan. As a rule of thumb, the total CPF lump sum withdrawn plus the loan taken (including bridging loan) cannot exceed the Valuation Limit (VL). VL is the lower of the purchase price or market value of the flat at the time of purchase.

Q	Can I use the bank's in-house valuation report for the purchase of my HDB flat financed with bank loan?

A	No, you can only use the valuation report done by a valuer assigned by HDB.

Q	Do I need to engage a lawyer for the purchase of an HDB flat?

A	It is advisable that you appoint a lawyer to act for you in the purchase of an HDB flat. Your lawyer will be drafting mortgage documents and transfer instruments to safeguard your interests in the flat. Alternatively, you may wish to engage HDB’s lawyers to act for you.

Q	Do I need to engage a lawyer or involve my bank to complete the form in order to use my CPF savings for a HDB flat financed with a bank loan?

A

Yes, please complete: a) HBL/1 (PDF, 1.9MB) form if it is the first time you are applying to use CPF to finance the purchase of your flat with the assistance of your lawyer; b) HBL/2 (PDF, 1.9MB) form if you are refinancing your housing loan to a new bank with the assistance of your bank’s lawyer; c) HBL/3 (PDF, 1.4MB) form if you want to commence the monthly instalment payment from your CPF accounts with the assistance of your bank; d) HBL/4 (PDF, 0.3MB) form if you want to revise/cease your monthly instalment or make an arrears/capital repayment with the assistance of your bank. If your application is rejected, you will be notified by the Board of the rejection reason(s). Please liaise with your bank or lawyer to re-submit the forms. Otherwise, you may wish to complete and re-submit the application form on your own, if you have the relevant information.

Q	Who will act for me in the disbursement and recovery of CPF savings if I take up a bank loan to pay for my HDB flat?

A

HDB may continue to act for the members in the disbursement and/or recovery of CPF savings. Members also have the option of engaging their own solicitors to act for them. In such cases, the Board will need to appoint its own solicitor to disburse and/or recover the CPF savings and the legal fees incurred will be borne by the members.

Q	When is the monthly CPF deduction for the housing loan instalment payments to the financiers for members who have taken up a bank loan for their HDB flat?

A	The deduction is between the 10th to 13th (inclusive of 10th & 13th) of the month.

Q	I have an instalment arrears for my HDB flat financed with bank loan. Can I use my CPF Ordinary Account (OA) savings to repay my financier as soon as it is credited?

A

Yes, you may use your CPF savings for your arrears payment. Online using my cpf 1. Login with your Singpass 2. Submit an online application via My Requests – Property. Your application will be processed within 3 working days. Mail 1. You can download and complete the HBL/4 (PDF, 0.3MB) application form. Mail it to CPF Board at least 7 working days before the payment due date. Central Provident Fund Board Housing Schemes Department Robinson Road P.O. Box 3060 Singapore 905060 (Attn: Public Housing Section - Bank Loan)

Q	Will my Home Protection Scheme (HPS) cover be affected if I refinance my HDB loan to a bank loan?

A	No, your HPS cover will not be affected. However if there are any changes to the loan repayment period or the loan amount, you have to inform the Board to adjust your HPS cover. A new Annual Premium HPS cover will be issued to you upon adjustment.

Q	If my co-owner is using his/her CPF savings for lump sum (one-time) payment only, do both my co-owner and I need to sign on the HBL/1 form? Does he/she need to complete the health declaration (HD) column?

A	Yes, both you and your co-owner are required to sign the HBL/1 form. Your co-owner (who is not using CPF for monthly instalment payment) is not required to complete the HD column, if he/she does not wish to apply for coverage under Home Protection Scheme (HPS).

Q	Do I need to declare my health status on Form HBL1/2/3 when applying the Home Protection Scheme (HPS)?

A

Yes, you are required to declare your health status under the following circumstances: 1) If you are currently not covered under HPS and intend to use CPF savings to service the monthly instalment of your HDB flat; 2) If there are changes to your outstanding housing loan (e.g. change in loan quantum or tenure).

Q	I intend to refinance my housing loan. If I am using my CPF savings for monthly instalment (MI) and have 100% coverage under the Home Protection Scheme (HPS), should my co-owner, who is not using CPF, complete the health declaration (HD) column of the HBL/2 form and indicate 0% for HPS?

A	No, your co-owner need not complete the HD column of HBL/2 form if he/she does not wish to apply for coverage under HPS since he/she is not using CPF savings towards the housing loan repayment.

Source: CPF
For more info: visit CPF

Purchase of Flat with HDB Concessionary Loan - CPF

Q Can members combine their CPF savings to pay for their HDB flat? A Yes, immediate family members (e.g. parents, spouse, children and siblings) who are co-owners can jointly use their Ordinary Account savings to pay for their HDB flat. Q Can I use my CPF savings to pay stamp duty, legal and other related fees when I purchase an HDB flat? A Yes, CPF savings may be used to pay the stamp duty, survey and legal fees. However, monthly service, conservancy and other charges relating to the use of the property, including taxes, cannot be paid with your CPF savings. Q How do I apply to use my CPF savings to pay the legal fees incurred in the purchase of an HDB resale flat? A You may submit a duly completed HPS/9 form at any of the CPF service centres. You will need your lawyer's letter, legal bill as well as your NRIC to complete the form. Q If I qualify for HDB concessionary loan, how much of my CPF savings can I withdraw? A FOR A FLAT FROM HDB You can use up to 100% of your CPF Ordinary Account savings to pay the initial 10% deposit as well as the balance of the purchase price. If your existing CPF balance is not enough for full payment of the purchase price, you may take up a housing loan from HDB and use all the monthly contributions to your Ordinary Account for the instalment payment of the loan. FOR A RESALE FLAT BOUGHT IN THE OPEN MARKET You may use all the CPF savings in your Ordinary Account plus the housing loan from HDB to pay up to the Valuation Limit (VL). The VL refers to the market value of the flat at the time of purchase or the purchase price, whichever is lower. HDB may grant you a loan of up to 90% of the VL. The HDB loan is subject to credit assessment by HDB. Also, HDB requires you to exhaust all your CPF Ordinary Account savings. Example A Example B Purchase price of flat $ 110,000 $ 110,000 Value of flat $ 100,000 $ 100,000 Therefore, Valuation Limit is $ 100,000 (a) $ 100,000 (a) Existing balance in your CPF Ordinary Account $   40,000 $   10,000 Payment at the time of purchase may comprise the following: CPF savings $   40,000 (b) $   10,000 (b) HDB loan $   60,000 $   90,000 Cash $   10,000 $   10,000 Purchase Price $ 110,000 $ 110,000 Future CPF withdrawals to repay HDB loan(with interest) $   60,000 (c) $   90,000 (c) Note: Future CPF withdrawals to repay HDB loan is the difference between the Valuation Limit (a) and the lumpsum CPF savings used (b) at the time of purchase (c=a-b). Q Do I need to wipe out my CPF Ordinary Account (OA) savings before taking up an HDB concessionary loan to buy a resale flat? A Yes, it is HDB’s requirement for you to utilise your CPF OA savings entirely before granting an HDB concessionary loan. Q Will the HDB concessionary loan interest rate change? A The HDB concessionary loan rate formula is OA rate + 0.1%, so it will change if the OA rate changes. Q If I am below 55 years old, do I need to set aside any minimum amount in my CPF accounts to buy a new HDB flat? A No. If the HDB flat is your only property bought using CPF, you are not required to set aside any minimum amount in your CPF accounts before buying the HDB flat. Q I am below 55 years old. Do I need to set aside the entire or part of the retirement sum before I can use my CPF to buy my HDB resale flat? A No. You do not need to set aside the entire or part of the retirement sum to buy the flat, if the flat is your only property bought using CPF. You can use your Ordinary Account savings for the flat, up to the Valuation Limit of the flat. The Valuation Limit is the lower of the purchase price or valuation price of the flat, at the time of purchase.​ Q I am above age 55 and have sold my flat. Can I use the refunded monies to buy another HDB flat? A Yes, you can use the following amounts to buy another HDB flat: a) Amount remaining in your Ordinary Account. The monies refunded from the sale of your earlier flat will be used to meet your Full Retirement Sum in your Retirement Account (RA). After this, any balance housing refunds will be paid to you in cash. b) RA savings above the Basic Retirement Sum. Q How can I check the outstanding housing loan owing to HDB? A You may check the amount of outstanding housing loan: • online with your SingPass at www.hdb.gov.sg; or • visit the HDB branch office managing your flat. Q How do I apply to make a full redemption of my outstanding housing loan taken with HDB? A If you wish to use your CPF to make a lump sum payment to fully redeem the outstanding loan with HDB, you would need to call personally with your identity card at your nearest HDB Branch Office to complete the HPS/9 form. Upon receiving your completed HPS/9 form from HDB, we will process it. The amount of CPF that you can use for the full redemption is subject to the availability of your Ordinary Account savings, as well as the limits on the use of CPF for housing. Q When is the monthly CPF deduction for the housing loan instalment payments under the Public Housing Scheme (PHS)? A The deduction is on the Sunday between the 6th to 12th (inclusive of 6th & 12th) of the month. This is the same for deduction of the upgrading cost by monthly instalments to HDB. Q Is there a deadline to pay the monthly instalment shortfall for my HDB flat? A Yes, you may wish to check with the HDB branch office which is managing your flat on the deadline. You are advised to pay up as soon as possible as HDB charges a penalty fee for late/non-payment. Q Can the Board deduct arrears instalments from my CPF account to HDB for my HDB flat once the latest CPF contributions are credited? A No, the Board will not be able to deduct the arrears amount as we are not authorised to do so. You can submit an e-request to use your CPF Ordinary Account savings to pay the arrears at HDB’s website www.hdb.gov.sg with your SingPass. Alternatively, please call personally at any HDB Branch Offices to complete an application form if you wish to use your CPF Ordinary Account savings to pay your arrears. Q Can CPF Board automatically deduct the monthly instalment shortfall for my HDB flat from my co-owner's CPF account? A No, the Board is not authorised to do so. Your co-owner needs to complete an application form at any HDB branch offices. Q Can I use my CPF to pay for the housing loan taken by my parent(s) and/or sibling? A Only members who are co-owners of the HDB flat can use their CPF Ordinary Account savings jointly towards the purchase of their HDB flat. Q What if I am going overseas and is in the process of buying an HDB flat? A You need to consult a lawyer to prepare the Power of Attorney. Your lawyer has to ensure that the Power of Attorney is adequate to empower the attorney to sign the security documents to withdraw the CPF savings for the purchase of the HDB flat. Please refer to the things to note when handling transaction while overseas for more information. Q How do I apply to use my CPF savings to buy the recess area of my HUDC flat which is not privatised? A Please submit a duly completed application form at the HDB branch office which is managing your flat. Q Can I use my CPF Ordinary Account (OA) savings to pay the conversion cost incurred to convert a HUDC lease to a strata title? A Yes, you may use your OA savings and/or Retirement Account savings in excess of your Basic Retirement Sum (if you are aged 55 and above) to pay for: a. the purchase cost of common areas​ b. the related legal and survey fees Your CPF savings, however, cannot be used to pay the construction costs incurred when converting the HUDC lease to a strata title.

Source: CPF

For more info: visit CPF

Revision of minimum stay duration (from six to three months) for private residential properties - URA

Published Date: 30 Jun 2017

The Urban Redevelopment Authority (URA) has lowered the minimum stay duration to three months, from the current six months.

The revision takes immediate effect and applies to all private properties which have been approved for residential use. All occupants residing in such properties must fulfil a minimum stay duration of three consecutive months. Stay durations of less than three consecutive months, including short-term stays (e.g. those facilitated through home-sharing platforms) continue to be disallowed.

During URA’s public consultation exercise on short-term stays in 2015, a majority of respondents were supportive of a reduction in the minimum stay duration. URA had considered this feedback in deciding on the current change.

More accommodation options

The minimum stay duration of six months was put in place since 2009. In recent years, we have observed growing demand from groups seeking accommodation for periods of between three to six months. They include academics and students visiting local Institutions of Higher Learning, and professionals on work assignments. The feedback from this group has been that they prefer private residential properties, considering their choice of locations, range in unit sizes, and financial affordability, over hotels and serviced apartments.

The revised minimum stay duration will provide these groups with more accommodation options. It will also provide more rental opportunities for property owners seeking to rent out their properties. Hotels and serviced apartments will continue to cater to visitors on shorter stays.

Preserving the residential character of housing estates

It is important that we preserve the residential character of private housing estates. URA has assessed that a minimum stay duration of three months is an appropriate limit which is not expected to cause any significant impact to residential communities, even as it extends benefits to potential tenants and landlords. However, URA will monitor the ground developments closely and assess the need for a further review, if necessary.

Separately, URA is reviewing possible guidelines to facilitate short-term rentals and intends to conduct a public consultation to seek feedback on this issue. We will provide more details on this consultation exercise when ready. 

Source: URA (30 Jun 2017)

Singapore condo prices recover in May - PropertyGuru

Overall prices of non-landed private homes here rose 0.4 percent in May on a monthly basis, reversing the 0.8 percent decline in the April, revealed flash estimates of the NUS Singapore Residential Price Index (SRPI).

Excluding small units, prices in the central region increased by 1.3 percent, an improvement from the 0.4 percent dip in the previous month. On the other hand, the non-central region posted a drop of 0.3 percent compared to a larger slide of 1.0 percent in April.

The central region sub-basket comprises properties situated in postal districts 1 to 4 and 9 to 11, while non-landed private homes located in the other postal districts fall under the non-central region sub-basket.

Meanwhile, prices for small units measuring 506 sq ft or below fell by 1.3 percent in May after witnessing a positive growth of 0.6 percent in the preceding month.

The latest statistics represent transactions received as of 20 June 2017.

This article was edited by Denise Djong.

Source: PropertyGuru (29 Jun 2017)

For Sale - 3 Room HDB @ Blk 61 Lorong 5 Toa Payoh Singapore 310061

- Selling Only
- #04
- Lease Starts 01 Jun 1967
- 49 yrs Remaining Lease
- 2 Bedrooms + Utility Room
- Unblock
- Original Condition

- Low Floor Corridor Unit 

for more details

Desmond Lim CEA R024721B

Miracles Realty Group Pte Ltd (L3010521I)

Singapore private resale prices increase 0.4% in May - SRX

Resale prices of non-landed private homes in Singapore increased 0.4 per cent in May, flash estimates from SRX Property showed on Tuesday (June 13), with 17.4 per cent increase in volume of sales compared to May 2016.

Prices last month also increased by 1.5 per cent compared to a year ago, but still remained 5.2 per cent below the recent peak in January 2014, SRX release stated.

The increase was led by a 1.1 per cent jump in prices in the prime region or Core Central Region (CCR) as well as in the city fringes or Rest of Central Region, (RCR). Prices in suburban areas or Outside Central Region (OCR) decreased by 0.4 per cent.

In individual sectors, CCR and RCR recorded a year-on-year price increase of 3.5 per cent and 2.3 per cent respectively, while OCR recorded a year-on-year price decrease of 0.2 per cent.

An estimated 1,235 non-landed private residential units were resold in May 2017, a 17.4 per cent increase to 1,052 units resold in April 2017. It was a whopping 57.7 per cent jump compared to May 2016, when 783 units were resold, but was down 39.8 per cent compared to its peak of 2,050 units resold in April 2010.

The median transaction over X value for non-landed private homes, which measures whether people are overpaying or underpaying the SRX Property X-Value estimated market value, was S$2,000 in May 2017 compared to S$5,000 in April in 2017.

Harbourfront and Telok Blangah districts posted the highest median TOX at positive S$60,000, while Changi district posted a negative TOX of S$21,000.

The Straits Times

Source: SRX (13 Jun 2017)

HDB resale flat prices dip in May, volume climbs 8.1% - SRX

THE transaction volume of Housing & Development Board (HDB) resale flats climbed 8.1 per cent month-on- month in May 2017 amid a 0.1 per cent price dip.

These findings are based on SRX Property's flash estimates released on Thursday for the public housing resale market for last month.

The slight easing in SRX Property's price index for HDB resale flats last month over April 2017 follows a 0.3 per cent month-on-month drop in April 2017.

Year on year, the price index has shed 0.7 per cent from May 2016. From the peak in April 2013, the index has declined 11.6 per cent.

Data compiled by SRX Property shows that an estimated 1,983 HDB flats were resold last month, 8.1 per cent higher than the 1,834 units in April 2017.

Year- on-year, too, the figure was up 7.5 per cent from the 1,844 units resold in May 2016.

That said, last month's resale volume was 45.7 per cent below the peak of 3,649 units in May 2010.

Year on year, SRX Property's price index for resale flats in mature estates inched up 0.1 per cent while the index for non-mature estates fell 1.3 per cent.

OrangeTee's head of research and consultancy Wong Xian Yang commented that HDB resale prices have continued to stabilise with prices down only 0.6 per cent year to date.

Volumes have also risen with around 8,300 units sold in January to May 2017, compared to 8,100 units in 2016 during the same corresponding period.

"According to recent media reports, the proportion of first-time buyers who chose to buy resale HDB flats (as against picking up a Build-To-Order, or BTO, flat from the Housing Board) has increased from 9 per cent in 2012 to 19 per cent in 2016.

"This suggests that Singaporeans are willing to fork out a premium to secure a home early and in choice locations," he said.

Additionally, the downtrend in HDB resale prices since 2013 coupled with generous CPF grants also increased the attractiveness of buying a resale flat, Mr Wong added.

"Hence demand for resale HDB flats is expected to remain healthy and HDB resale price growth is expected to be range-bound between -1 per cent and +1 per cent, as strict loan curbs continue to keep prices at bay. Resale HDB volumes are expected to grow about 2 to 5 per cent in 2017 over 2016."

Savills Singapore research head Alan Cheong noted that with a subdued employment market, it is possible that first-time homebuyers may opt for BTO flats from the Housing Board rather than for resale flats, which even after the grant, may require buyers to fork out more than for a new unit from HDB.

The Business Times

Source: SRX (09 Jun 2017)