“Using CPF for your purchase? what are the things CPF need?”
So when you meet your lawyers, basically these are what needs to be prepared for CPF to approve your case to drawdown the figures:
- Signed bank letter of Offer copy – The bankers should have already provided this to the purchasers who signed the loan with them.
- Banks letter of instruction – The bank’s backend department will be providing a copy to the law firm representing the purchasers.
- Valuation report – The bank’s backend should’ve provided this to the law firm representing the purchasers
- Marriage certificate – If this purchase involves a matrimonial purchase. (Meaning, you purchase this property with your spouse)
PropertyWiki Tip: As the bank’s letter of offer, letter of instructions, valuation report take time to be generated, signed and approved by their internal department’s head before they can be sent over accordingly, it will take time. A highly recommended tip is to get an IPA (In-Principle Approval) at the earliest possible stage, so you won’t get a heart attack.
- We ever saw a client who couldn’t get full 75% loan entitlement and resulted to struggle hard just to gather enough cash elsewhere to pay off the shortfall. They resulted in selling their investments earlier just to salvage the exercising process, leaving a very unpleasant experience in their home purchase when home buying is supposed to be a happy journey.
A client asked me what are the things CPF need in order for CPF to disburse her funds to pay for Stamp Duties/lump sum 15% payment/legal fees etc.
So other then the option to purchase, sales and purchase agreement (if the purchase is a new condo) CPF will also need the following:
- Signed bank letter of Offer – Banker will pass a copy to buyer.
- Bank letter of instructions – Bank’s back end will pass a copy to law firm.
- Valuation report – Bank’s backed will pass a copy to law firm.
- Marriage certificate (if it’s a matrimonial purchase).
Propertywiki tip 101: Bank letter of offer, letter of instructions, valuation report all takes time to generate, signed and approve and send over. So its strongly recommended to do a IPA (in principle approval) early, and sign the letter of offer early too.
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!