Landed Property

Am I eligible to use my CPF savings under PPS?

All CPF members who are eligible to buy a private property are eligible to use their CPF savings under PPS.

You are not eligible if:

  • you are buying a private property with a remaining lease of less than 30 years;
  • you are buying a private property with a remaining lease of less than 60 but at least 30 years and your age plus the remaining lease of the private property is less than 80 years;
  • you are a single person buying a private property with a non-related single and you have used CPF for an existing property; or
  • you are a married person buying a private property with a non-related single.

Eligible to buy Private Condominium :

  • If you own a HDB flat, DBSS flat or Executive Condominium, you have to fulfill the minimum occupation period before you can purchase private residential properties.
  • If you are not a Singapore citizen, you have to obtain approval from the Controller of Residential Property before you may buy landed houses (including strata landed houses).

 

Multiple Properties Buyers

who have use CPF for their house, have to set aside $80,500 each in their Special account before we can use Ordinary account to purchase your next Property.  Click Here for CPF  Properties Scheme.

Retirement Sum Scheme

Buyers above 55 years old have to login into CPF account to check on the amount that can be used to purchase a property. While Buyers who are 55 years old today, can use half of the $151,000 to purchase the property. Click Here for Retirement Sum Scheme

Procedure For Completed Residential Property :

Downpayment – 20% of the Purchase Price:

  • 1% of Purchase Price is the Booking Fee, you will be given a copy of “Option to Purchase”.
  • Within 2 Weeks you have to Exercise the “Option to Purchase”. At the same Time, prepare a “Letter of Offer” if you are taking a loan before meeting the lawyer.
  • 4% of Purchase Price to Exercise in the Lawyer Office.
  • Within 2 Weeks from Exercise Date, you have to pay Stamp Duty and Addition Stamp Duty if any.
  • 15% of Purchase Price, can be in CPF and Cash on the Completion Date. Completion Date is about 3 month from Exercise Date.

 

Procedure For Under Construction Residential Property :

  1. Progressive Payment Schemes 

Downpayment – 20% of the Purchase Price

Upon Booking a unit, 5% booking fee either Cashier Order or Cheque and Option to Purchase will be granted (OTP). We ‘Developer’ will then mail the Sale and Purhcase (S&P) Agreement to your banker’s solicitor or to you within 1 to 2 weeks from the OTP date. Upon received the S&P you are given 3 weeks from the received date of S&P to exercise the S&P.

Within 14 days of signing the S&P agreement (or within 30 days if the agreement is signed overseas). You will have to pay the Stamp Duty/Additional Stamp Duty (Cash/CPF) to IRAS (Inland Revenue Authority of Singapore). eg Stamp Duty is 3% less $5,400 and Additional Stamp Duty is % of the Purchase Price depend on number of houses and Citizenship.

What is Stamp Duty?

Stamp duty is a Tax on documents relating to the purchase of a property.

It is to be paid by buyer within 14 days after the date of documents (e.g. Sale & Purchase Agreement) if the document is signed in Singapore.

If the document is signed overseas, it has to be paid within 30 days after date of its receipt in Singapore.

Stamp Duty is to be paid to IRAS (Inland Revenue Authority of Singapore). So what is Buyer’s Stamp Duty (BSD)?

Buyer’s Stamp Duty is tax paid on the acceptance to Option to Purchase (OTP)/ Sale & Purchase Agreements (S&P).

These are documents (OTP or S&P) that are prepared and signed when you purchase a property.

The buyer is responsible for paying Buyer’s Stamp Duty. Stamp Duty will be computed on the purchase price.

Additional Buyer’s Stamp Duty (ABSD)

It is a tax payable when you purchase or acquire a residential property i.e. applicable to both HDB flats and Private Properties.

The rate that you need to pay depends on your nationality (and/or your PR status).

It is to be paid by buyer within 14 days after the date of documents (e.g. Sale & Purchase Agreement) if the document is signed in Singapore.

If the document is signed overseas, it has to be paid within 30 days after date of its receipt in Singapore. Stamp Duty is to be paid to IRAS (Inland Revenue Authority of Singapore).

The Poiz Residences ABSD

ABSD

Within 8 weeks from the date of OTP, you will have to pay the remaining 15% in Cash/CPF. (Post dated cheque of this 15% can be done on the day you exercise the S&P). If you are using CPF to pay for the 15% of downpayment, only a multiply properties buyer (include HDB in the count) individual needs to set aside a minimum sum of $80,500 in Special Account before using the Ordinary Account to pay for the 15%.

e.g. Case 1 :

OA has $100,000 and SA has $50,000, you can only use OA $69,500 to pay for the downpayment.

e.g. Case 2 :

OA has $100,000 and SA has $100,000, you can only use all OA $100,000 to pay for the downpayment.

Loan to Value

 

If you are taking 80% loan, the monthly bank Installment (Cash/CPF) will start after the first disbursement of the 10% completion of foundation work. Monthly bank installment is calculated based on Market Interest Rate (Depend on the Package you sign with the bank) and your Loan Tenure.

If your LTV (loan to Value) is 70% then the balance amount to be paid is 25% (20% Downpayment minus 5% Booking fee) 15% to be paid  upon 8 weeks and balance 10% (Foundation work Completed) will be paid by progressive payment stages.

The payment schedule and the % of purchase price payable is illustrated in the table below:

Progressive Payment Scheme :

The Poiz Residences 20% Downpayment Time Line

20% Downpayment Time Line

The Poiz Residences 20% Downpayment Time Line

Stamp Duty

The Poiz Residences 80% Progressive Paymnet

80% Progressive Paymnet

You can finance a loan to 80% of the purchase price. The Tenure of the loan can be up to 30 years or 65 years old. (By extending the Tenure or age the amount of loan will reduce to 60%).

  • 10% upon completion of foundation work – Estimated 6 to 12 months
  • 10% upon completion of concrete framework – Estimated 6 to 12 months
  • 5% upon completion of brick walls – Estimated 3 to 6 months
  • 5% upon completion of ceiling – Estimated 3 to 6 months
  • 5% upon completion of door and window frame – Estimated 3 to 6 months
  • 5% upon completion of Carpark – Estimated 3 to 6 months
  • 25% upon receiving Notice of Vacant Possession and Temporary Occupation Permit (TOP) – Estimated 3 to 6 months
  • 15% upon Completion Date, you will receive Certificate of Statutory Completion (CSC) – Estimated 12 months
The Poiz Residences Loan To Value Table

Loan To Value Table

On 11 Jan 2013, the Monetary Authority of Singapore (MAS) tightened the Loan-to-Value (LTV) limits for borrows who already have at least one outstanding housing loan.

  1. i) On 28 June 2013, the Monetary Authority of Singapore (MAS) introduced a Total Debt Servicing Ratio (TDSR) for all property loans granted by financial institutions to individuals. Banks need to ensure that borrowers’ total monthly debt repayments do not exceed 60% of their gross monthly income (Fixed Income)

Loan-to-Value Limits :  Depends on the number of loan you have and Total Debt Servicing Ratio (Private housing loan) :

1st Housing Loan : LTV is 80% minimum cash 5% (60% if tenure > 30years or extends past age 65 minimum cash 10%)

2nd Housing Loan: LTV  is 50% minimum cash 25% (30% if tenure > 30 years or extends past age 65 minimum cash 25%)

3rd Housing Loan : LTV 40% minium cash 25% (20% if tenure > 30 years or extends past age 65 minimum cash 25%)

For corporate entities, LTV 20%

The Poiz Residences Loan to Value Chart

Loan to Value Chart

The Poiz Residences Borrower Mortgagor Guarantor

Borrower Mortgagor and Guarantor Relationship

How is Gross Monthly Income calculated ?

  • Fixed Month Income : 100% of monthly income excluding CPF contributions
  • Variable Monthly Income : Variable Income include  commission, bonus and rental, Max 70% average monthly variable income in the last 12 months excluding CPF contribution or Max 70% employment in the latest NOA divided by 12 by 12
  • Fixed + Variable Monthlly Income : Total (i) + (ii) or Employment income in the latest Notice of Assessment divided  by 12
  • Rental Income : Not more than 70% can be included, Stamped tenancy agreement with remaining rental period of at least 6 months
  • Value of Financial Assets : For unencumbered financial assets, apply % deduction on the value of the assets, either 0%, 30% or 70% deduction. After deduction, amortise the value of assets over 48 months.

The outstanding debts that TDSR will take into account include:

  • Credit Card Balances (including ‘instalment plans’ with retailers).
  • Student lLoans.
  • Personal Loans.
  • Car Loans.
  • Other Home Loans (if applicable).

‘Stress Test’ for Residential Properties is 3.5% and Commercial Properties 4.5%. It is used to determine a rise in interest rates without busting the 60% TDSR limit.

The Poiz Residences TDSR Calculation

TDSR Calculation

The Poiz Residences Income Weighted Average Age

Income Weighted Average Age

Borrower A, age 30 earns $3000 per month Borrower B, age 40 earns $5000 per month IWAA = (30 x $3,000) + (40 x $5,000) = 36.25 years $3,000 + $5,000  OCBC’s practice: IWAA to be rounded up, i.e. 37 years •65 years minus 37 years = 28 years (max LTV); or •75 years minus 37 years = capped at 35 years

Additional Buyer Stamp Duty

We can reimburse for ABSD

ABSD Rates for Joint Purchases Made by Married Couples and ABSD Refund for Purchase of Second Residential Property

ABSD remission applies to co-purchase of residential property by married couples involving SC and SPR spouses under some scenarios denoted with # in the Tables below.

From 12 Jan 2013, a married couple with a SC spouse is eligible for ABSD refund on their second property if they sell their first property within 6 months of the date of purchase/TOP/CSC, whichever is applicable

The Poiz Residences Married Couple who are both Singapore Citizen

Married Couple who are both Singapore Citizen

*Properties owned include those owned wholly, or owned partially or jointly with others

The Poiz Residences Married Couple who are Singapore Citizen and Singpore Permanent Resident

Married Couple who are Singapore Citizen and Singapore Permanent Resident

  • Properties owned included those owned wholly, or owned partially or jointly with others.
  • # Subject to approval of the application for remission (by way of lower ABSD rate or full remission).

Table 3: Married Couple who are SC-FR

The Poiz Residences Married Couple who are Singapore Citizen and Foreigner

Married Couple who are Singapore Citizen and Foreigner

*Properties owned include those owned wholly, or owned partially or jointly with others.

# Subject to approval of the application for remission (by way of lower ABSD rate or full remission)

The Poiz Residences Married Couple who are SPR-FR

Married Couple who are SPR-FR

*Properties owned include those owned wholly, or owned paritally or jointly with others

#Subject to approval of the application for remission (by way of lower ABSD rate or full remission)

Seller Stamp Duty

The Poiz Residences Seller Stamp Duty

Seller Stamp Duty

 

Bank’s Mortgage Rates

SIBOR stands for Singapore Interbank Offered Rate and is a daily reference rate based on the interest rates at which banks offer to Lend unsecured funds to other banks in the Singapore wholesale money market (or interbank market).

It is similar to the widely used LIBOR (London Interbank Offered Rate), and Euribor (Euro Interbank Offered Rate). Using SIBOR is more common in the Asian region and set by the Association of Banks in Singapore (ABS).

SIBOR comes in 3 -month tenure. At the end of the tenure, the borrowing bank returns the borrowed fund to the lending bank.

UOB HOME LOAN RATE

What are the other ways to finances and protect our Properties?

  1. Pledge and Unpledge
  2. Overseas Cash
  3. Gurantor become owner
  4. Refinancing
  5. Decoupling
  6. Mortgage Insurance

Register with us we can Personalize and Re-structure Your Portfolios.

ContactUs.com