Photo by Fuyoh

I’m going to get a resale flat soon. Let’s work out some details and see if I need to quicken my savings or I’ve enough.

Supposing I am getting a 4 room hdb. The going rate now is 400k, which includes like 30k COV. Let’s put it as 450k market rate with COV of 50k. Since I’m a first time applicant and I’m going to find a flat that is near my parents, there’ll be a grant of 40k, which is deposited to the CPF so that I can use it to pay for deposit or the down payment . I’ve to pay a 10% down payment of the resale price or the value of the price, whichever is lower. So 10% of the value (450k – 50k COV = 400k value) is 40k. Of this 40k, 20k can be paid using combined CPF or cash, in whatever combination since I’m taking hdb loan. I’ll pay all using CPF in that case. I still need to pay some nonsense like options and what fees…just put it as \$7k. I also need to pay the housing agent commission of 1%, which is \$4.5k.

To put it clearly,

Value of flat = 400k
COV = 50k
Total amt of CPF + grant of 40k = 60k (combined cpf is only 20k, so plus 40k grant is 60k)
Down payment using CPF = 40k
Nonsense fees (cash) = 7k
Housing agent commission (cash) = 4.5k Read more…