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- Buying A House
...A Place To Call Your Own

 
When will CPF charges take effect:
 
a) For HDB Flat
b) For Private Property
 
a) For HDB flat
The CPF charges will take effect upon the release of CPF savings. The ranking of charge is shown in below:
 
1st Charge Bank's or HDB’s Outstanding Loan
2nd Charge CPF principal sum up to 100% of VL plus CPF used to pay the legal and stamp fees in the purchase, and cost of upgrading under the HDB Main Upgrading Programme.
3rd Charge Equal ranking
  - CPF principal sum beyond 100% of VL plus CPF accrued interest
  - Repayment of outstanding balance of the housing loan interests
4th Charge Equal ranking
  - CPF legal costs and expenses
  - Bank's legal costs and expenses
 
b) Private Property
The CPF charges will take effect on the property before the CPF savings can be released. For properties bought after 1 September 2003, the ranking of charge for private residential properties is shown in Table below:
 
1st charge
Outstanding housing loan from your financier
2nd charge
CPF principal sum up to 100% Valuation Limit plus CPF withdrawals used for the legal and stamp fees in the purchase
3rd charge
Equal ranking (pari passu)
  - CPF principal sum beyond the 100% Valuation Limit plus accrued interest
  - Repayment of outstanding balance of the housing loan interests
4th charge
Equal ranking (pari passu)
  - CPF legal costs and expenses
  - Financier's legal costs and expenses


 
Buying A House 

What is your current financial situation?
Should you buy an HDB flat or a private property?
What are the criteria required to be able to use CPF savings to buy a home?
What can CPF savings be used for?
How much CPF can you use?
What important factors should I be aware of when using CPF to repay a housing loan?
What happens when you sell?
What happens if you divorce?
What if I am a bankrupt?
Other Considerations
Moving forward
 
 Last Updated on: Thursday, August 28, 2008 at 9:10 PM
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