So this week, we encountered a question by a fellow banker who was representing her client, for a new launched condo purchase matter, who gave the instructions to use his CPF for the 15% lump sum payment. In this situation, the law firm is making a request to the banker to make a request to their backend department to expedite with the LI (Letter of instruction) and the VR (valuation report), in order to write to CPF for the application to use the purchaser’s funds for his home purchase.

“New changes in CPF ruling in May 2019”

PropertyWiki of the week!So this week, we encountered a question by a fellow banker who was representing her client, for a new launched condo purchase matter, who gave the instructions to use his CPF for the 15% lump sum payment. In this situation, the law firm is making a request to the banker to make a request to their backend department to expedite with the LI (Letter of instruction) and the VR (valuation report), in order to write to CPF for the application to use the purchaser’s funds for his home purchase.

The standard procedure from the bank is as follows:

  • Step 1: Submission of all the necessary documents to get approval of loan and tenure
  • Step 2: Credit department gives the approval of the loan request
  • Step 3: Client is then requested to open a bank account with the bank
  • Step 4: Letter of offer will be generated by the bank and given to client for signing
  • Step 5: Letter of instructions generated to be provided to purchaser’s law firm
  • Step 6: Valuation report once conducted, will be provided to purchaser’s law firm

But as you can see from the image, the CPF regulations have changed.

  • Past: Law firms can submit the valuation report to CPF latest on the day of disbursing the Funds.
  • Present: valuation report and letter of offer must be submitted at the time of CPF Funds application.

PropertyWiki Tip: To ensure your CPF funds can be disburse in time, it is most ideal to secure the bank loan ASAP.

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