Common Questions
CPF USAGE
1) Can I use my CPF monies as downpayment for buying a new condominium under construction?
No, the 5% downpayment for properties under construction has to be strictly in cash only.
2) I am purchasing a 5 room HDB flat at a resale price of $570,000 and market value is at $550,000. Can I obtain a HDB loan if I have a CPF balance of $580,000?
No, HDB loan will not be obtainable as CPF used cannot exceed 100% of market value or resale price whichever is lower.
3) What is the minimum down-payment that I have to pay in Cash or CPF Monies in terms of taking a HDB loan or a Bank loan?
Assuming a 90% loan is granted for taking HDB loan, down-payment of 10% can be from CPF Ordinary Account.
Assuming a 80% loan is granted for taking Bank loan, down-payment of 5% can be from Cash and 15% from CPF Ordinary Account.
4) My parents are staying in an private property and I am planning to buy a HDB within the same town. Am I eligible for the CPF housing grant for living near parents?
Yes, you will be eligible for an housing grant of $40,000 as long as your household income are not exceeding $10,000 per month and yours parents are residing within same town or within 2 km.
5) My spouse and I are purchasing our second property, how much minimum sum do we have to set aside in our CPF account?
From 1 July 2013, the minimum sum required in the CPF account (ordinary account and special account) must be $148,000. Therefore, each of you will need to set aside a minimum of $74,000 in your CPF account.
6) Can I use the money in my CPF special account to pay for my housing loan?
No, you cannot use money inside the CPF special account, only the CPF ordinary account can be used.
7) Is there a need to wipe out my CPF account for the purchase of property?
Yes for HDB property, you will need to utilise all your available CPF money to purchase the property.
No for private property, you can choose to allocate any amount of your CPF money.
8) Is my CPF medisave balance considered as part of the minimum sum required?
No, only balance in the CPF ordinary account and CPF special account are considered for minimum sum.
9) Do I need to top up my CPF account after I have sold off my property?
Yes, you have to top back the amount that was used to buy the property back into your CPF account plus interest.
10) Can non-related buyers such as friends use CPF monies to buy a new condo together?
Yes and No.
Yes, if the new condo is the buyers’ first property and has not used CPF for any property purchase before.
No, if any one party has existing properties and has already used CPF before for any previous property purchase.
11) I am purchasing my first Executive Condominium (EC). Am I eligible to receive a housing grant and what is the amount of grant that I can receive?
Yes, first-timer households are eligible to receive a CPF Housing Grant of up to $30,000 as follows:
Monthly household income not more than $10,000 >> CPF Housing Grant $30,000
Monthly household income more than $10,000 to $11,000 >> CPF Housing Grant $20,000
Monthly household income more than $11,000 to $12,000 >> CPF Housing Grant $10,000
1) Can I use my CPF monies as downpayment for buying a new condominium under construction?
No, the 5% downpayment for properties under construction has to be strictly in cash only.
2) I am purchasing a 5 room HDB flat at a resale price of $570,000 and market value is at $550,000. Can I obtain a HDB loan if I have a CPF balance of $580,000?
No, HDB loan will not be obtainable as CPF used cannot exceed 100% of market value or resale price whichever is lower.
3) What is the minimum down-payment that I have to pay in Cash or CPF Monies in terms of taking a HDB loan or a Bank loan?
Assuming a 90% loan is granted for taking HDB loan, down-payment of 10% can be from CPF Ordinary Account.
Assuming a 80% loan is granted for taking Bank loan, down-payment of 5% can be from Cash and 15% from CPF Ordinary Account.
4) My parents are staying in an private property and I am planning to buy a HDB within the same town. Am I eligible for the CPF housing grant for living near parents?
Yes, you will be eligible for an housing grant of $40,000 as long as your household income are not exceeding $10,000 per month and yours parents are residing within same town or within 2 km.
5) My spouse and I are purchasing our second property, how much minimum sum do we have to set aside in our CPF account?
From 1 July 2013, the minimum sum required in the CPF account (ordinary account and special account) must be $148,000. Therefore, each of you will need to set aside a minimum of $74,000 in your CPF account.
6) Can I use the money in my CPF special account to pay for my housing loan?
No, you cannot use money inside the CPF special account, only the CPF ordinary account can be used.
7) Is there a need to wipe out my CPF account for the purchase of property?
Yes for HDB property, you will need to utilise all your available CPF money to purchase the property.
No for private property, you can choose to allocate any amount of your CPF money.
8) Is my CPF medisave balance considered as part of the minimum sum required?
No, only balance in the CPF ordinary account and CPF special account are considered for minimum sum.
9) Do I need to top up my CPF account after I have sold off my property?
Yes, you have to top back the amount that was used to buy the property back into your CPF account plus interest.
10) Can non-related buyers such as friends use CPF monies to buy a new condo together?
Yes and No.
Yes, if the new condo is the buyers’ first property and has not used CPF for any property purchase before.
No, if any one party has existing properties and has already used CPF before for any previous property purchase.
11) I am purchasing my first Executive Condominium (EC). Am I eligible to receive a housing grant and what is the amount of grant that I can receive?
Yes, first-timer households are eligible to receive a CPF Housing Grant of up to $30,000 as follows:
Monthly household income not more than $10,000 >> CPF Housing Grant $30,000
Monthly household income more than $10,000 to $11,000 >> CPF Housing Grant $20,000
Monthly household income more than $11,000 to $12,000 >> CPF Housing Grant $10,000
HDB
1) Am I allowed to hold on to my HDB flat after purchasing a private property?
For Singaporeans who have met the minimum occupation period(MOP), they are allowed to purchase another private property and continue toretain their existing HDB flat even after the private property is completed.
For Permanent Residents who have met the minimum occupation period(MOP), they are allowed to purchase another private property but they will have to dispose of the HDB flat within 6 months after the new private property is completed for occupation.
2) I am a Singaporean and my spouse is a SPR. Are we allowed to keep the HDB after buying a condominium?
Yes. For Singaporean + SPR married couples, you will be allowed to retain your HDB flat even after the purchase of a private property.
3) What is the rights to an option to purchase issued for HDB transactions?
Option to purchase (OTP) is an irrevocable offer which binds the seller, but not the purchaser.
Once granted, the seller cannot offer his property to another prospective purchaser during the validity period of the option period (typically 14 calendar days).
The ‘Option to Purchase’ agreement is typically prepared by the seller’s salesperson or lawyer, and buyers must go through it carefully before signing it. Any amendments made need to be agreed by the seller. Typically 1% of the purchase price is given to the seller in exchange for the OTP.
A 14-day exclusivity period is given to buyers to decide whether to purchase the property or not. Here, the seller is not allowed to offer the property to another buyer during this period.
If the buyer decide to exercise the option by signing it, the buyer will send it back to the seller’s lawyer or his/her own lawyer with another 4% of the purchase price (typically)
If buyer do not exercise the Option within the stated period, the Option will expire and the seller is entitled to keep the 1% option money and sell the property to any other buyer.
4) Is there a source whereby I can check the past transacted prices of HDB properties in a vicinity?
Yes, you may check up the HDB Infoweb which releases the data on a quarterly basis.
5) Can I rent out my whole HDB unit before the MOP is fulfilled?
Yes, but you will need to fulfil the criteria for sub-letting, flat owners must be a Singapore Citizen to sublet and need to satisfy the condition of a Minimum Occupation Period.
If you do not meet the MOP for subletting, allowed to sublet whole flat if under any one of the following circumstances:
6) If I were to sell my HDB and take over ownership of my parent’s HDB, do I need to pay any resale levy?
Resale levy is only applicable if you have bought a subsidised unit from HDB and are applying for a 2nd subsidised HDB unit.
Assuming you got your HDB at a subsidised rate, you will not need to pay the levy unless you take up CPF Grant to purchase your parent’s HDB.
7) How do owner-occupier’s tax rates apply if I own a HDB flat and recently purchased a private residential property?
If you own both a HDB flat and a private residential property, the owner-occupier’s tax rates will automatically apply to the HDB flat. This is because an owner of a HDB flat is required to use it for owner-occupation.
But if you wholly rent out your flat or are in the process of selling your flat to live in your private residential property, the owner-occupier’s tax rates on your flat will be withdrawn from the date of letting/ sale of the HDB flat. You may then apply for the owner-occupier’s tax rates for your private property.
8) I am a divorcee and wish to sell my HDB flat in the open market, is there any restrictions that I will face?
Minimum occupation period must be completed, as at the date of divorce completion, if the divorced owners wish to sell their flat in the open market.
If the divorce is within the MOP and none of the owners is eligible to retain the flat, the owners may have to return the flat to HDB, subject to HDB’s approval. The compensation for the return of flat will be determined by HDB.
9) I am a citizen and my spouse is a non-citizen spouse, are we eligible to buy a Resale flat and get a HDB Concessionary loan?
Your spouse must be at least 35 if he/she is holding a social visit pass (including work permit) of less than 6 months to be eligible to buy a resale flat. To fulfill the eligibility for HDB Concessionary loan:
1) Am I allowed to hold on to my HDB flat after purchasing a private property?
For Singaporeans who have met the minimum occupation period(MOP), they are allowed to purchase another private property and continue toretain their existing HDB flat even after the private property is completed.
For Permanent Residents who have met the minimum occupation period(MOP), they are allowed to purchase another private property but they will have to dispose of the HDB flat within 6 months after the new private property is completed for occupation.
2) I am a Singaporean and my spouse is a SPR. Are we allowed to keep the HDB after buying a condominium?
Yes. For Singaporean + SPR married couples, you will be allowed to retain your HDB flat even after the purchase of a private property.
3) What is the rights to an option to purchase issued for HDB transactions?
Option to purchase (OTP) is an irrevocable offer which binds the seller, but not the purchaser.
Once granted, the seller cannot offer his property to another prospective purchaser during the validity period of the option period (typically 14 calendar days).
The ‘Option to Purchase’ agreement is typically prepared by the seller’s salesperson or lawyer, and buyers must go through it carefully before signing it. Any amendments made need to be agreed by the seller. Typically 1% of the purchase price is given to the seller in exchange for the OTP.
A 14-day exclusivity period is given to buyers to decide whether to purchase the property or not. Here, the seller is not allowed to offer the property to another buyer during this period.
If the buyer decide to exercise the option by signing it, the buyer will send it back to the seller’s lawyer or his/her own lawyer with another 4% of the purchase price (typically)
If buyer do not exercise the Option within the stated period, the Option will expire and the seller is entitled to keep the 1% option money and sell the property to any other buyer.
4) Is there a source whereby I can check the past transacted prices of HDB properties in a vicinity?
Yes, you may check up the HDB Infoweb which releases the data on a quarterly basis.
5) Can I rent out my whole HDB unit before the MOP is fulfilled?
Yes, but you will need to fulfil the criteria for sub-letting, flat owners must be a Singapore Citizen to sublet and need to satisfy the condition of a Minimum Occupation Period.
If you do not meet the MOP for subletting, allowed to sublet whole flat if under any one of the following circumstances:
- Going overseas to work or study
- Applicant/spouse, family members or authorised occupiers, are all staying in quarters provided by employers
- Living in quarters provided by employer
- Applicant/spouse are going overseas to work or study and the entire family will be going along, or leaving behind family members who cannot take care of themselves and who will be moving out of the flat
- Living in commercial properties
- Applicant/spouse are tenants, subtenants or owners of commercial property with living quarters and have to stay there, with family members, to look after the business
6) If I were to sell my HDB and take over ownership of my parent’s HDB, do I need to pay any resale levy?
Resale levy is only applicable if you have bought a subsidised unit from HDB and are applying for a 2nd subsidised HDB unit.
Assuming you got your HDB at a subsidised rate, you will not need to pay the levy unless you take up CPF Grant to purchase your parent’s HDB.
7) How do owner-occupier’s tax rates apply if I own a HDB flat and recently purchased a private residential property?
If you own both a HDB flat and a private residential property, the owner-occupier’s tax rates will automatically apply to the HDB flat. This is because an owner of a HDB flat is required to use it for owner-occupation.
But if you wholly rent out your flat or are in the process of selling your flat to live in your private residential property, the owner-occupier’s tax rates on your flat will be withdrawn from the date of letting/ sale of the HDB flat. You may then apply for the owner-occupier’s tax rates for your private property.
8) I am a divorcee and wish to sell my HDB flat in the open market, is there any restrictions that I will face?
Minimum occupation period must be completed, as at the date of divorce completion, if the divorced owners wish to sell their flat in the open market.
If the divorce is within the MOP and none of the owners is eligible to retain the flat, the owners may have to return the flat to HDB, subject to HDB’s approval. The compensation for the return of flat will be determined by HDB.
9) I am a citizen and my spouse is a non-citizen spouse, are we eligible to buy a Resale flat and get a HDB Concessionary loan?
Your spouse must be at least 35 if he/she is holding a social visit pass (including work permit) of less than 6 months to be eligible to buy a resale flat. To fulfill the eligibility for HDB Concessionary loan:
- Have a monthly household income not exceeding $10,000
- Have not previously taken 2 or more HDB concessionary loans
- Do not own any private residential property in Singapore or overseas
- Do not own more than 1 commercial/industrial property in Singapore or overseas
- Own 1 commercial/industrial property and operate the business yourself
Stamp Duty
1) I am a Singaporean but my wife is a PR. How much stamp duty do I have to pay for my second property?
If both names are put in the second property, the payable stamp duties will be 3%(normal) + 10%(ABSD)
If only the Singaporean name is in the second property, it will be 3%(normal) + 7%(ABSD)
2) My wife is a foreigner but I am a Singaporean. Do I need to pay Additional Buyer Stamp Duty for my 1st property?
Singaporeans and their PR/Foreigner spouse can try to apply for an ABSD remission with IRAS (Inland Revenue Authority of Singapore) on a case by case consideration.
3) I am a foreigner looking to invest in Singapore. Is there any restrictions to buy private properties in Singapore?
Foreigners may only buy private properties such as non-landed condominiums, offices and shops units.
The prevailing additional buyer stamp duty (ABSD) payable is 15% on the purchase price for residential developments.
4) Is the stamp duty on leases to be borne by landlord or the tenant?
Under the laws governing estate agency practice, the tenant will have to bear the cost on stamp duty.
5) I bought my property on 25 December 2009, do I have to pay seller’s stamp duty if I want to sell it now?
No, as effective date for seller’s stamp duty started on 20 February 2010, therefore seller’s stamp duty is not applicable for properties bought before 20 February 2010.
6) Do the owner-occupier’s tax rate apply if I own one private residential property A and recently purchase another private residential property B?
The owner-occupier’s tax rates can be given to only one property at any one time. You can apply for the owner-occupier’s concession for the private residential property that you are occupying. The other private residential property will be taxed at 10%.
In the event you have moved into the recently purchased private residential property B, you may apply for the owner-occupier’s tax rates for this property. The owner-occupier’s concession applied to your current private residential property A will be withdrawn from the date the concession is applied to private residential property B.
7) I am a SPR Citizen pending to get full Singaporean Citizen status. Can I buy first and claim back ABSD later?
No refunds. The ABSD is determined at the point of exercising the S&P. If you are an SPR buying first property, you will incur 5% ABSD and no remission will be allowed even after you obtain your Singapore Citizenship later on.
8) My brother and I co-own one property currently. Can we buy a 2nd property under-construction and once it TOP we sell the 1st and claim back ABSD?
No. ABSD refund/remission is only applicable for married couples. Siblings, friends, parent/child related ownership will not be applicable for any ABSD refunds.
1) I am a Singaporean but my wife is a PR. How much stamp duty do I have to pay for my second property?
If both names are put in the second property, the payable stamp duties will be 3%(normal) + 10%(ABSD)
If only the Singaporean name is in the second property, it will be 3%(normal) + 7%(ABSD)
2) My wife is a foreigner but I am a Singaporean. Do I need to pay Additional Buyer Stamp Duty for my 1st property?
Singaporeans and their PR/Foreigner spouse can try to apply for an ABSD remission with IRAS (Inland Revenue Authority of Singapore) on a case by case consideration.
3) I am a foreigner looking to invest in Singapore. Is there any restrictions to buy private properties in Singapore?
Foreigners may only buy private properties such as non-landed condominiums, offices and shops units.
The prevailing additional buyer stamp duty (ABSD) payable is 15% on the purchase price for residential developments.
4) Is the stamp duty on leases to be borne by landlord or the tenant?
Under the laws governing estate agency practice, the tenant will have to bear the cost on stamp duty.
5) I bought my property on 25 December 2009, do I have to pay seller’s stamp duty if I want to sell it now?
No, as effective date for seller’s stamp duty started on 20 February 2010, therefore seller’s stamp duty is not applicable for properties bought before 20 February 2010.
6) Do the owner-occupier’s tax rate apply if I own one private residential property A and recently purchase another private residential property B?
The owner-occupier’s tax rates can be given to only one property at any one time. You can apply for the owner-occupier’s concession for the private residential property that you are occupying. The other private residential property will be taxed at 10%.
In the event you have moved into the recently purchased private residential property B, you may apply for the owner-occupier’s tax rates for this property. The owner-occupier’s concession applied to your current private residential property A will be withdrawn from the date the concession is applied to private residential property B.
7) I am a SPR Citizen pending to get full Singaporean Citizen status. Can I buy first and claim back ABSD later?
No refunds. The ABSD is determined at the point of exercising the S&P. If you are an SPR buying first property, you will incur 5% ABSD and no remission will be allowed even after you obtain your Singapore Citizenship later on.
8) My brother and I co-own one property currently. Can we buy a 2nd property under-construction and once it TOP we sell the 1st and claim back ABSD?
No. ABSD refund/remission is only applicable for married couples. Siblings, friends, parent/child related ownership will not be applicable for any ABSD refunds.
Seller Stamp Duty(SSD) rates will be imposed on residential properties which are acquired on or after 14 January 2011 If disposed of (or sold) within 4 years of acquisition:
For properties bought on or after 30 August 2010 If disposed of (or sold) within 3 years of acquisition:
- Holding period of 1 year or less : 16% of price or market value, whichever is higher
- Holding period of 1 year to 2 years : 12% of price or market value, whichever is higher
- Holding period of 2 years to 3 years : 8% of price or market value, whichever is higher
- Holding period of 3 years to 4 years : 4% of price or market value, whichever is higher
- Holding period beyond 4 years : 0%
For properties bought on or after 30 August 2010 If disposed of (or sold) within 3 years of acquisition:
- Holding period of 1 year or less : Full amount of stamp duty buyer paid for the property
- Holding period of 1 year to 2 years : 2/3 amount of stamp duty buyer paid for the property
- Holding period of 2 years to 3 years : 1/3 amount of stamp duty buyer paid for the property
