CPF Minimum Sum
1) Do you know you are required by law to keep a minimum sum in your CPF account?
2) Especially if you apply for a new hdb flat and you do contra, 1st charge is HDB and 2nd charge is the CPF Board which can retain your sales proceed if you have a shortfall in your CPF minimum sum.
3) The same occurs when you buy a studio apartment (30 years leasehold).
4) It also happens when you take a $20K grant for seniors.
5) By that time, it will be almost the same as a 3rm resale flat, if you buy a 3rm resale flat, the above will not happen.
6) That is the reason why the Government do not want to build any new 2rm/3rm flats so as to keep flat prices high. Is it time to talk to our ministers to complain?
7) If you have a lot of cash from your hdb sale proceeds, do not contra for the same reasons, it is cheaper to get a bridging loan.
8) Do you also know if you apply for a $40K grant from HDB to stay near your parents, you will be penalised in future if you downgrade to a rental flat by paying “market” rates?
– Contributed by Oogle.