The loans thread!

[Altivo]

the CPF minimum sum ruling is too complicating to me... until now i dont understand what CPF mean.

 

Hahaha, besides min sum, still got

 

1) Valuation Limit

2) Withdrawal Limit

Edited March 7, 2013 by Altivo

[Toothiewabbit]

did ur friend make a loss in the previous buy/sell of HDB? I only know min now is $139K after adjusting for inflation... to buy a 2nd property..u need to meet at least half of this amt (OA n SA combined) in order to use CPF to finance...but then again..bcos contribution rates change along certain age...one needs to take that into consideration..refinance HDB? hmmm....first time I heard of that...took HDB loan and ask HDB can refinance their HDB loan meaning extend loan period? or shorten it? I tot shortening is possible as I have ever apply to reduce my loan amount which automatically reduces the loan period...

Logical to think that it's possible. They wanted to reduce the loan with ordinary and shorten the loan period as well but denied.

[Galantspeedz]

if my house is paid up and i want to use it as collateral to get some funds.... any banks doing this?

[Mustank]

IIRC, the house only comes into play when you reach 55 yo and haven't accumulated the required amount for the min sum. Before that, you're still required to contribute each month to the OA.

 

That's why I always advocate using the maximum amount of CPF to pay for your housing loans while you save separately. Otherwise, all your $ will just get lock up in CPF. Since CPF is your money in name, might as well make good use of it.

 

 

my concern is that i cannot use 100% of my OA to pay my one and only property

is there any rulings such as this mim sum thing that prevents me from using 100% of my OA to pay my one and only property?

 

[Chucky2007]

Hahaha, besides min sum, still got

 

1) Valuation Limit

2) Withdrawal Limit

thats the complicating part... minimum sum, vluation limit, withdrawal limit..

 

after i starting to understand what they are.. cpf start changing the variable %, amount.. then i am confused again.

[Altivo]

my concern is that i cannot use 100% of my OA to pay my one and only property

is there any rulings such as this mim sum thing that prevents me from using 100% of my OA to pay my one and only property?

 

It's confirmed you cannot use 100% of your OA to pay for your mortgage.

 

The figures below are for illustration purpose only

 

If looking from a monthly repayment perspective, say your monthly loan is 1.2k. And your OA contribution is 1k. You cannot use the entire 1k to pay your loan. Some amount will be still go to the OA to slowly accumulate to reach the min sum requirement.

 

You can use 100% OA once you have the required min sum in your OA

[Mustank]

It's confirmed you cannot use 100% of your OA to pay for your mortgage.

 

The figures below are for illustration purpose only

 

If looking from a monthly repayment perspective, say your monthly loan is 1.2k. And your OA contribution is 1k. You cannot use the entire 1k to pay your loan. Some amount will be still go to the OA to slowly accumulate to reach the min sum requirement.

 

You can use 100% OA once you have the required min sum in your OA

 

this is really !@#!@#$%$#%^%^&*%^$%$@#!#~!@ :angry:

[Altivo]

thats the complicating part... minimum sum, vluation limit, withdrawal limit..

 

after i starting to understand what they are.. cpf start changing the variable %, amount.. then i am confused again.

 

Ya, damn confusing.

 

I think Valuation Limit is basically the lower of either the purchase price or the market valuation of your property. So if the sale price is $1 mio and valuation is $900k. The the VL is 900k. Then how fast you hit the VL is also dependent on how much downpayment you make and if it's via cash or CPF. Cos the more CPF you use, the faster you hit the VL limit.

 

Once VL limit is hit, then must see your age leow. If below 55 yo, you need to have 50% of the min sum in your OA before you can continue to use your excess CPF to pay your loan. If 55 yo and above, then must have 100% of min sum in OA before being allowed to continue using CPF to pay.

 

If can't achieve either, than must use cash hoh.

 

Withdrawal Limit is the maximum of CPF beyond the VL which you can use. Currently, it is at 120% of the VL. Once the WL is hit. No more can come out of CPF. Everything cash

 

Use the below calculator to see how long it would take before you hit your VL and WL respectively.

 

http://www.cpf.gov.sg/cpf_info/calculator/vl/vl_input.asp

 

So as a general rule, just make sure your monthly loan is not more than 35% of your income. You should be quite safe. The calculator state that I would take 51 yrs from today to hit the VL and 63 years to hit WL.

Edited March 7, 2013 by Altivo

[Chucky2007]

Thanks! You are MCF CPF subject matter expert!

[Mustank]

Thanks! You are MCF CPF subject matter expert!

 

You reply wrong guy

Altivo is the expert

[Altivo]

You reply wrong guy

Altivo is the expert

 

haha... no lah. Just share share

[S4vtec]

OCBC fixed rate 1.66% free legal fees

[Chucky2007]

OCBC fixed rate 1.66% free legal fees

Had lunch with a ocbc banker. Confirm no more free legal fees.

[S4vtec]

Had lunch with a ocbc banker. Confirm no more free legal fees.

 

 

now i don't know, mine was from 2 years back at least

[Hamburger]

Had lunch with a ocbc banker. Confirm no more free legal fees.

i also had breakfast with a bank teller and she said the same thing....

[RadX]

i also had breakfast with a bank teller and she said the same thing....

 

 

i slept wiht the ceo and she could not talk [laugh]

[Chucky2007]

i also had breakfast with a bank teller and she said the same thing....

your bank teller quite updated. have more breakfast with her..

[Hamburger]

i slept wiht the ceo and she could not talk [laugh]

how lian......