HDB loan - Very Important

[alghojo]

I rasa kebanyakkan kita, termasuk saya, yg ambil loan dari HDB kurang faham tentang adanya syarat Loan Limit. Setelah saya buat banyak pertanyaan dgn HDB baru sekarang benar2 faham tentang perkara ini.

Loan limit ni ialah pinjaman yang kita boleh dapat dari CPF dan loan limit ini ialah harga valuation rumah anda ketika anda membeli rumah anda. (eg. Valuation price = $200K , Buying price = $210K, biasanya kita bayar cash $10K to seller) Jadi loan limit for this is $200K, bermakna anda hanya boleh gunakan $200K dari CPF to pay for the loan.

Katakan di dalam account Cpf kita ada $100K, all that amt will be deducted from that a/c, so $200K - $100K = $100K, so actually you are taking a $100K loan from HDB.

This part a bit complicated to explain. The principal loan amt of $100K + interest 2.6% for let say 30 yr loan will adds up to probably (just estimation, malas nak calculate) $140K.

to be continue......

[alghojo]

So remember earlier I said your loan limit is $200K? Now u add the total amt u pay $140K + $100K = $240K. This part most of us take for granted, actually the difference of $40K, we must top up in hard cash, u cannot pay using cpf money anymore cos u dah exceed the limit.

Hope my short explaination helps but if want further explaination can reply here and i try my very best to answer or u cannot log in to hdb or cpf webby to look for more clarification.

Btw, i not house agent, just wnna share what i feel is important.

[Lynn_Ida]

Alghojo,
thanks for sharing.. tapi sedikit confuse..

Selling price = 210k
Valuation = 200k
therefore 10k is paid by cash directly to owner.

200k - 100k (buyer's cpf) = 100k
therefore 100k is to be loan from HDB at 2.6% per annum over a period of 30yrs
total interest = 78k [2.6% x 30yrs = 78% x 100k (loan amount)  = 78k]
therefore the total loan amount (plus interes) from CPF is = 178k

how did you get 100k + 140k = 240k?

[alghojo]

200k - 100k (buyer's cpf) = 100k
therefore 100k is to be loan from HDB at 2.6% per annum over a period of 30yrs
total interest = 78k [2.6% x 30yrs = 78% x 100k (loan amount)  = 78k]
therefore the total loan amount (plus interes) from CPF is = 178k

how did you get 100k + 140k = 240k?

Haha...thks for the calculation, like i mentioned my math a little weak , 40K an assumption for the interest. Anyway since u did the correct calculation, the point i wanna make is the $78K part, this amt you need to use cash to pay if u do not have the minimum sum in ur cpf a/c.

Tergerak hati nak post this thing cos baru terbaca in straits times abt this matter.

[alghojo]

ok ok ok  i think i got what u mean...$100K + $140K = $240 (actual figure $100K + $178K = $278) is actually the total amt u pay for ur house including interest.

[Doe]

ok ok ok  i think i got what u mean...$100K + $140K = $240 (actual figure $100K + $178K = $278) is actually the total amt u pay for ur house including interest.

Selling price = 210k
Valuation = 200k
therefore 10k is paid by cash directly to owner.

200k - 100k (buyer's cpf) = 100k
therefore 100k is to be loan from HDB at 2.6% per annum over a period of 30yrs
total interest = 78k [2.6% x 30yrs = 78% x 100k (loan amount)  = 78k]
therefore the total loan amount (plus interes) from CPF is = 178k

So base on the calculation (loan amount 100K + interest 78K = Total loan amount 178K) .. there isn't any hard cash to pay as the loan is still within 200K limit.

[alghojo]

So base on the calculation (loan amount 100K + interest 78K = Total loan amount 178K) .. there isn't any hard cash to pay as the loan is still within 200K limit.

Exactly this part yg selalu org confuse. Remember I mentioned abt Loan Limit, its the total amt u can use to pay for ur loan from ur cpf ac.

Loan amt 100K + int 78K = 178K, correct, but u must remember that u already use 100K from ur cpf ac for the initial downpayment. U must add that amt cos its that amt is also from ur cpf ac.

[alghojo]

If u refer to hdb or cpf webby, this loan limit, they refer it to Valuation Limit (VL), but i prefer to use loan limit, senang nak paham.

[nz7976]

hmm i tink no wonder lah ours selalu they call n ckp tak cukup, tak cukup deh..
now we very e pening on where to get the money to pay to them..
currently ours have been outstanding for $2k++ cmg to $3k.. (dgn late payment skali hehe)

they keep asking us to turun, bt if turun no $$ pun buat apa? buang masa je..

so i act hoping sgt that they consider our case n hopefully we can b downgraded.. 

[aUra]

i think nz.. for ur case is unsuffiencient for them to deduct.

misal kata.. monthly amt installement is $1,500 and in the acct your/hubby cpf, less than $1,500, how they can deduct. it best you go down and discuss with them the best solution instead hoping they consider.. everyday it building up.. you sure tak nak sampai ketahap yg teruk.. it still 3k.. jgn sampai it become 30k

u can ask them if partial deduct, meaning.. half dari cpf, or combine deduct..

of coz u can downgrade, but obviously u need to take bank loan.. if u thot of hdb loan.. maybe u can write in to them then if let say they send letter they reject your appel... you can try get ur MP to appel to them

we are responsible for anything and cannot expect others to solve for us.. take a step to make appt with them and understand clearly what is happening and dont make assumption..

[alghojo]

Since its only 2K better try very hard to finish it off bcos fr 2K can become 10K...20K and so on.

Its no joke. i know of somebody who took a hdb loan of abt 100K and after 10 yrs the loan instead of reducing has been become more than 100K. This is becausethey don't not have enuff cpf and mthlyly they pay lesser than what they supposed to pay. Becos hdb imposed latepayment charges, the loan actually becomes more.

[mudpie]

hmm i tink no wonder lah ours selalu they call n ckp tak cukup, tak cukup deh..
now we very e pening on where to get the money to pay to them..
currently ours have been outstanding for $2k++ cmg to $3k.. (dgn late payment skali hehe)

they keep asking us to turun, bt if turun no $$ pun buat apa? buang masa je..

so i act hoping sgt that they consider our case n hopefully we can b downgraded.. 

NZ, the fact tt u r taking up HDB loan, they can still consider other alternatives to work out wif u to settle tis issue. I noe HDB is pretty lenient compared to Bank Loans, which is rather harsh when money is concerned. Go down to any HDB Town Council & discuss yr plight. I hv a relative who prefer to sweep the dust under the carpet & ended up hvg their outstanding loan shoot up till 20+K over a period of 3 years or so. It's no joke cuz time flies, u didnt realise this 'nitty gritty' stuffs till it balloons up.

HDB still hv their compassion to sort out issues wif their clients, but u juz hv to work wif them to resolve it....by not putting forth yr predicament wif them early, tt might triggers further complications in future.

As much as possible, HDB won't want to take the extreme steps to their client, they'll help as much as possible.....can't say much abt Bank rules & regulations.....hmmm siang2 dorang dah layang surat......

Bank Loan is hefty, tt i must say....for my bank loan interest is now pegged at 4.4% for the fourth year running, it's aint small money, baybee....

Ask nicely, dun get emotional..... MONEY EQUALS MONEY, NOT EMOTIONAL....YEAH???

Good Luck, Gurl.....

[alghojo]

NZ, the fact tt u r taking up HDB loan, they can still consider other alternatives to work out wif u to settle tis issue. I noe HDB is pretty lenient compared to Bank Loans, which is rather harsh when money is concerned. Go down to any HDB Town Council & discuss yr plight. I hv a relative who prefer to sweep the dust under the carpet & ended up hvg their outstanding loan shoot up till 20+K over a period of 3 years or so. It's no joke cuz time flies, u didnt realise this 'nitty gritty' stuffs till it balloons up.

HDB still hv their compassion to sort out issues wif their clients, but u juz hv to work wif them to resolve it....by not putting forth yr predicament wif them early, tt might triggers further complications in future.

As much as possible, HDB won't want to take the extreme steps to their client, they'll help as much as possible.....can't say much abt Bank rules & regulations.....hmmm siang2 dorang dah layang surat......

Bank Loan is hefty, tt i must say....for my bank loan interest is now pegged at 4.4% for the fourth year running, it's aint small money, baybee....

Ask nicely, dun get emotional..... MONEY EQUALS MONEY, NOT

EMOTIONAL....YEAH???

Good Luck, Gurl.....

This is exactly what happen to the somebody i mentioned earlier. True case, no main2, luckily loan hdb not the bank...

[Lynn_Ida]

alghojo,
are you actually referring to the the CPF Withdrawal Limit for housing?

Something like you can only use your cpf up to max 120% of the Valuation price to finance your house?
i read from the CPF website.. this Withdrawal Limit is applicable only if you are using Bank Loan to finance your mortgage loan.

This is how I think it works..
Valuation of flat (VL) = $200,000
Selling Price = $210,000
Cash = $210,000 -  $200,000 = $10,000
CPF downpayment (DP)= $100,000
Balance = $100,000 (finance by bank loan)
Bank Loan Interest  (lets say flat 4% per annum)
Loan period = 30 yrs
*4% x 30 = 120% (100000 x 120% = 120,000)
*Total loan balance (incl. interest) = 100,00 + 120,00 = 220,000

Total purchase is :
$100,000 (DP) + $220,000 (loan + interest) = $320,000

CPF Housing Withdrawal limit (w.e.f 1 Jan 2008) = 120% of VL = 120% x $200,00 (VL) = $240,000

$320,00 (total price incl interest) - 240,000 (Withdrawal limit) = $80,000

so, how to pay this remaining $80,000???
you can still use CPF provided you have the minimum sum in your CPF account. If not, pay by cash.

* interest calculation based on upfront flat rate

I think this is wat the scenario is all about. Kalau nak lebih clear, pls consult the HDB officer one-to-one.. lebih accurate.

Nz,
as for your case of HDB calling to say not sufficient CPF.. could be its like this..

Your monthly instalment = $1000
Your CPF Cont (Ordinary account)  = $900

therefore, you will have to pay the difference by cash.

My info may not be accurate cos the last time I purchase a flat was 7yrs ago and HDB just love to change its policy whenever they like it..

[alghojo]

Yes I'm refering to that but not loan thru bank but thru HDB, they have similar rule too. You are right that if you do not have the minimum sum once u reached the VL, you must pay by cash.

As for me, when i 1st came to know of this thing, i went to hdb and cpf to enquire, they did the calculation and tabulation and tell me exactly when i will hit my VL and when i will have to start paying by cash. They also told me that once you hit VL and u don't have a minimum sum in ur cpf ac, you can also write-in to them to let u pay by cpf but they will consider case to case basis.

Now i just hope that once I hit VL, my cpf ac will have the minimum sum.