2 Tips You Must Know Before Using Your CPF To Buy House | TheFinLens
- 5 years ago
If you’re Singaporean or a Permanent Resident planning to buy your first house in Singapore, highly likely you may already have thoughts about using your CPF savings to pay for your house partially or in full. However before you make any decisions, it is very important that you are made aware of these tips.
CPF Housing Grants Accepted Has To Be Returned With Accrued Interest
A misconception among first-time home buyers who is planning to use their CPF savings to buy a house in Singapore is that the CPF Housing Grants offered are given without any commitments. So the belief is that when they receive the grants, it will actually be a direct deduction off the price of the HDB flat which is not the case.
If you are eligible, have applied and have been approved to receive the grant, what actually happens is that the money will be credited into your CPF account which will be used for the house. In other words, it is money that has been taken from your CPF account which is actually meant for retirement. Thus, it has to be returned plus interest that you could have earned on your CPF had it not been used.
Does that then mean that if you do receive the grant in your CPF account, you can keep it in your account to accumulate interest and not use the money to pay for your house? The answer is an outright no. If you find yourself being confused, feel free to contact us personally so that we are able to explain to your further in detail!
CPF Money Used To Pay For Your Flat Has To Be Returned With Accrued Interest
Many of you are aware that your CPF savings are crucial when it comes to your retirement or when you have passed away as your nominees will receive your CPF savings in cash. Thus when you use your CPF savings to pay for your house, you are actually taking out the money that could have potentially earned interest if it had not been used. To put it simply, you are borrowing money from your retirement savings to pay for your flat.
Read More:
http://thefinlens.com/2-tips-you-must-know-before-using-your-cpf-to-buy-your-house/
Contact Us:
http://thefinlens.com/our-outstanding-service/stay-in-touch/
CPF Housing Grants Accepted Has To Be Returned With Accrued Interest
A misconception among first-time home buyers who is planning to use their CPF savings to buy a house in Singapore is that the CPF Housing Grants offered are given without any commitments. So the belief is that when they receive the grants, it will actually be a direct deduction off the price of the HDB flat which is not the case.
If you are eligible, have applied and have been approved to receive the grant, what actually happens is that the money will be credited into your CPF account which will be used for the house. In other words, it is money that has been taken from your CPF account which is actually meant for retirement. Thus, it has to be returned plus interest that you could have earned on your CPF had it not been used.
Does that then mean that if you do receive the grant in your CPF account, you can keep it in your account to accumulate interest and not use the money to pay for your house? The answer is an outright no. If you find yourself being confused, feel free to contact us personally so that we are able to explain to your further in detail!
CPF Money Used To Pay For Your Flat Has To Be Returned With Accrued Interest
Many of you are aware that your CPF savings are crucial when it comes to your retirement or when you have passed away as your nominees will receive your CPF savings in cash. Thus when you use your CPF savings to pay for your house, you are actually taking out the money that could have potentially earned interest if it had not been used. To put it simply, you are borrowing money from your retirement savings to pay for your flat.
Read More:
http://thefinlens.com/2-tips-you-must-know-before-using-your-cpf-to-buy-your-house/
Contact Us:
http://thefinlens.com/our-outstanding-service/stay-in-touch/