An agent asked me for advice for his client. 

So basically his client purchased a new condo and was due to exercise his sales and purchase agreement in 3 weeks time, however his client have not yet decided to take a loan / not yet decided which bank offers the best rates. 

I cant decide which bank loan to take. Can my CPF pay for stamp duties first?

An agent asked me for advice for his client. 

So basically his client purchased a new condo and was due to exercise his sales and purchase agreement in 3 weeks time, however his client have not yet decided to take a loan / not yet decided which bank offers the best rates. 

The question is “without this loan, can the client still use his CPF to pay for stamp duties?” 

Under MAS rulings, one can use CPF to pay for stamp duties but only applies for new condo purchase, in addition one must secure first secure a bank loan, then CPF will disburse the funds for stamp duties. 

However, CPF can also disburse the funds for Stamp Duties even when the client hasn’t secure the loan. 

  • This purchase will be treated as a Cash + CPF purchase only. It will be assumed that the client will exhaust all his cash first, then CPF will come in for the progressive payments at the last part. 
  • Since banks are the ones doing valuation, the absence of the bank loan means that clients must appoint a valuer and do the valuation on themselves (But the law firm can assist to write to CPF to waive off this requirement). – this means extra cost incurred $214 for desktop valuation – link to bernard valuers. 

Propertywiki tip 101: How to get the best rates across all banks – link to redbrick brokers – commission is paid by the bank, client do not need to pay. 

So you are still unsure? Do contact us if you have any further queries and we will do our best to answer it if it is not found anywhere here!