Page 1 of 2 12 LastLast
Results 1 to 30 of 41

Thread: CPF usage eligibility

  1. #1
    Join Date
    Jan 2009
    Posts
    130

    Default CPF usage eligibility

    let's say a couple (not married) wants to buy a condo and one of the parents want to pay the 20 % down payment for them using 5% cash and 15% cpf. the remaining 80% cpf will be contributed by the couple.

    is this combination allowed? or they would not be able to use their cpf for the payment of the condo.

  2. #2
    Join Date
    Oct 2010
    Posts
    653

    Default

    Quote Originally Posted by cornycow
    let's say a couple (not married) wants to buy a condo and one of the parents want to pay the 20 % down payment for them using 5% cash and 15% cpf. the remaining 80% cpf will be contributed by the couple.

    is this combination allowed? or they would not be able to use their cpf for the payment of the condo.

    I believe they only way this could be possible is that the "parents" will be treated as a co-owners of the property. However such arrangement could end up very messy

    1) What will happen if the couple decides to go separate ways?
    2) What will happen to the parents' CPF money if the couple is unable to service the loan during an economic and property downturn?

  3. #3
    Join Date
    Apr 2011
    Posts
    2,810

    Default

    I think it is quite impossible unless the parents contribute 20% cash instead of 5% cash & 15% CPF or alternatively, the parents must be one of the owners. Because when the house is sold, CPF has to go back to its respective account unless the parents have already reached the retirement age, then maybe they can take out the cash. It is better to check with the CPF board for better understanding.

  4. #4
    Join Date
    Jul 2010
    Posts
    2,890

    Default

    3 combo allowed but implications on loan tenure.

    Why get into this? U need 3 people to agree to sell at the agreed price... Very messy if anyone objects. Why?

    Just buy alone by parent and rent it to the two suckers.

  5. #5
    Join Date
    Oct 2010
    Posts
    653

    Default

    Sorry OT abit.


    Lets assume A, B & C are co-owner of an apartment. And if C decided to sell his share of the apartment to a friend D,

    1) Can this be done without the blessing of A & B?
    2) Does D needs to pay stamp fee?

  6. #6
    Join Date
    Jul 2010
    Posts
    2,890

    Default

    I suppose the answer lies in manner if holding, joint or tenants in common. If latter, should be possible just like any other transaction.

  7. #7
    Join Date
    Oct 2010
    Posts
    653

    Default

    Quote Originally Posted by kingkong1984
    I suppose the answer lies in manner if holding, joint or tenants in common. If latter, should be possible just like any other transaction.
    Does it mean you can change ownership without having to pay stamp fee?

  8. #8
    Join Date
    Dec 2009
    Posts
    6,003

    Default

    Quote Originally Posted by cornycow
    let's say a couple (not married) wants to buy a condo and one of the parents want to pay the 20 % down payment for them using 5% cash and 15% cpf. the remaining 80% cpf will be contributed by the couple.

    is this combination allowed? or they would not be able to use their cpf for the payment of the condo.
    If you are referring to yourself, then you must be a very blessed person

  9. #9
    Join Date
    Apr 2010
    Posts
    15,307

    Default

    Quote Originally Posted by Jadey
    Does it mean you can change ownership without having to pay stamp fee?
    Nid to pay

  10. #10
    Join Date
    Oct 2010
    Posts
    653

    Default

    Quote Originally Posted by devilplate
    Nid to pay

    how much for stamp fee do you pay?

  11. #11
    Join Date
    Jan 2009
    Posts
    130

    Default

    according to a mortgage loan banker, this combination is not allowed. in the sense that if the couple wants to utilise cpf to pay for monthly loan installments, they themselves must be the owners of the house and not with any other family member.

    if the family member is involved (3 people), pty can still be bought but no cpf can be used.

  12. #12
    Join Date
    Apr 2010
    Posts
    15,307

    Default

    Quote Originally Posted by Jadey
    how much for stamp fee do you pay?
    Market valuation

    but for ur previous eg of a,b,c tenancy in common with one of them selling his share to another person....i m not so sure how much stamp fees....

    I believe dun hf to seek the other co owners for permission to sell bcoz i ever heard a story of a divorcee staying wif her ex husband's fren...lol

    So for couple better buy wif joint tenancy

  13. #13
    Join Date
    May 2009
    Posts
    976

    Default

    Why are they suckers? They haven't got married yet ...

    Quote Originally Posted by kingkong1984
    3 combo allowed but implications on loan tenure.

    Why get into this? U need 3 people to agree to sell at the agreed price... Very messy if anyone objects. Why?

    Just buy alone by parent and rent it to the two suckers.

  14. #14
    Join Date
    Mar 2011
    Posts
    126

    Default

    Quote Originally Posted by cornycow
    according to a mortgage loan banker, this combination is not allowed. in the sense that if the couple wants to utilise cpf to pay for monthly loan installments, they themselves must be the owners of the house and not with any other family member.

    if the family member is involved (3 people), pty can still be bought but no cpf can be used.
    The banker is right! To use cpf, ur scenario has to fall under of the allowable categories. To play safe, go to cpf board to seek confirmation before your purchase

  15. #15
    Join Date
    Apr 2011
    Posts
    160

    Default

    CPF can be used if they are co-owners. Get more details from the CPF website.

    Q: Are members allowed to use their CPF savings jointly to buy a property under Residential Properties Scheme (RPS)?
    A: Yes. The following group of members can jointly use their CPF to buy a property:
    • Members of the immediate family e.g. spouses, parents, children and siblings or
    • Non-related singles (unmarried, divorced or widowed) provided that they are currently not using CPF for any existing properties.
    The total CPF amount that can be withdrawn (lumpsum and monthly instalments) by all the joint owners should not be more than the withdrawal limit allowed.

  16. #16
    Join Date
    Nov 2008
    Posts
    8,013

    Default

    The use of cpf is very restrictive to begin with so for anyone using cpf has to be a joint tenant of the unit. If no cpf is used, then loads of other combinations can be explored.

  17. #17
    Join Date
    May 2009
    Posts
    1,089

    Default

    my friend went thru this, Father 50%, mum 25%, son 25%. Son found a meimei & decided to take over the unit. Meimei took over 50% (fathers' share) son took over the other 25% (mum's share) so the couple now holds 50/50. Stamp duty base on valuation.

    This might be a better option, in case couple breaks up upon TOP. Treat the extra stamp duty as a form of 'insurance'.

    Think there's another situation as 'gift', maybe someone can shed some light on this.
    Last edited by maisonjai; 25-07-11 at 20:50.

  18. #18
    Join Date
    Oct 2010
    Posts
    653

    Default

    Quote Originally Posted by maisonjai
    my friend went thru this, Father 50%, mum 25%, son 25%. Son found a meimei & decided to take over the unit. Meimei took over 50% (fathers' share) son took over the other 25% (mum's share) so the couple now holds 50/50. Stamp duty base on valuation.

    This might be a better option, in case couple breaks up upon TOP. Treat the extra stamp duty as a form of 'insurance'.

    Think there's another situation as 'gift', maybe someone can shed some light on this.

    Did they pay 100% of the stamp duty just to take over the father 50% and mum's 25%?

  19. #19
    Join Date
    May 2009
    Posts
    1,089

    Default

    Quote Originally Posted by Jadey
    Did they pay 100% of the stamp duty just to take over the father 50% and mum's 25%?
    Just pay the remaining 75% duty.

  20. #20
    Join Date
    Jul 2010
    Posts
    2,890

    Default

    Quote Originally Posted by Jadey
    how much for stamp fee do you pay?
    Prevailing rates on the sales price.

  21. #21
    Join Date
    Jul 2010
    Posts
    2,890

    Default

    Quote Originally Posted by gn108
    Why are they suckers? They haven't got married yet ...
    Thats why they are sucking the elderly dry.

  22. #22
    Join Date
    Mar 2011
    Posts
    255

    Default

    The real suckers are those who buy with parents' money and yet exclude their names from the ownership

  23. #23
    Join Date
    Apr 2011
    Posts
    2,810

    Default

    I had come across a case. A very sad case. The retired father bought the house with his son using the father's CPF. Later the son got married and the father transferred his name to the son's wife thinking that he could also stayed in the same house. Something unhappiness happened between the son's wife and the father, so the father wanted to take back the house but the son said if he wanted the house, he must buy it from him. Where is the justice?

  24. #24
    Join Date
    Jul 2011
    Location
    Earth
    Posts
    4,063

    Default

    Quote Originally Posted by irisng
    I had come across a case. A very sad case. The retired father bought the house with his son using the father's CPF. Later the son got married and the father transferred his name to the son's wife thinking that he could also stayed in the same house. Something unhappiness happened between the son's wife and the father, so the father wanted to take back the house but the son said if he wanted the house, he must buy it from him. Where is the justice?
    The moral of the story is not to transfer ownership of something to someone, especially if it is your only property, no matter how you love the someone or no matter how much the other party claims he loves you. Loan him by all means, everything must be in black and white.

  25. #25
    Join Date
    Oct 2010
    Posts
    653

    Default

    If your parents can really afford it they wont need to touch their CPF monies.

  26. #26
    Join Date
    Apr 2011
    Posts
    160

    Default

    Quote Originally Posted by buttercarp
    The moral of the story is not to transfer ownership of something to someone, especially if it is your only property, no matter how you love the someone or no matter how much the other party claims he loves you. Loan him by all means, everything must be in black and white.
    Or, if you love someone so much, consider it a gift and not a loan. So don't ever think about taking it back in future. Not reasonable to take back a gift right?

    But if it is just an arrangement to help son to overcome red tape, then black and white is the best.

  27. #27
    Join Date
    Nov 2008
    Posts
    8,013

    Default

    Do not expect to depend on your children in old age. Property prices will be so so high by then that you cannot expect them to accommodate another person, less staying in harmony with your son/daughter in-law. Prepare yourself now for old age without your children. They may still take from you when you are retired, not in a disrespectful manner but more like really too demanding for them to manage!

  28. #28
    Join Date
    Apr 2011
    Posts
    2,810

    Default

    Quote Originally Posted by masterkey
    Or, if you love someone so much, consider it a gift and not a loan. So don't ever think about taking it back in future. Not reasonable to take back a gift right?

    But if it is just an arrangement to help son to overcome red tape, then black and white is the best.
    Because the couple wanted the old man to shift out but where to stay, of course he needed his flat back. Afterall the flat was fully paid by the father. I think the son should at least pay his father some money for the house if the son still wanted to stay in the same house and insisted his father to shift out. He shouldn't asked his father to buy from him and pay him if the father wanted the house back. That means the father will have to pay two times for the same house. Something made me boiled was that the son and the daughter-in-law were both highly educated. How can they treat an old man like that?

    I went with a group of friends to his house once during CNY and felt embarrased when his daughter-in-law came out from her bedroom and drawn the curtain between her bedroom and the hall angrily (maybe we were very noisy), the father felt bad and explained to us that she had just come back from a swim with his grand-daughter and they needed to rest but we didn't know that they were sleeping inside.

    After this case, I come to realise that never transfer the house ownership to any of your children when you are still around. At least when you grow old, you still have a roof over your head.

  29. #29
    Join Date
    Nov 2008
    Posts
    8,013

    Default

    Just present this story online or in the papers and shame the couple. Let the public decide.

  30. #30
    Join Date
    Oct 2010
    Posts
    653

    Default

    I have also hear story about young couple selling away their HDB to invest in private property or MM apartment, and then move back to live with their aging parents.

    So their elderly parents will never be able to cash out or rent out their HDB for retirement.

    This to me is totally wrong.

Similar Threads

  1. HDB Flat Eligibility (HFE) letter
    By Arcachon in forum HDB, EC, commercial and industrial property discussion
    Replies: 0
    -: 01-11-21, 10:58
  2. Estimate your EC loan eligibility based on age & income 😊
    By Arcachon in forum Finance and Legal
    Replies: 0
    -: 10-03-21, 08:06
  3. HDB Flat Eligibility (HFE)
    By Arcachon in forum HDB, EC, commercial and industrial property discussion
    Replies: 0
    -: 05-03-21, 12:18
  4. Discarding conventional mindsets on property usage
    By Kevin Tan in forum HDB, EC, commercial and industrial property discussion
    Replies: 0
    -: 28-09-15, 10:07
  5. Govt agencies asked to tighten CBD space usage
    By mr funny in forum HDB, EC, commercial and industrial property discussion
    Replies: 0
    -: 27-05-08, 10:02

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •