ELIGIBLE TO USE CPF

THE SAIL @ MARINA BAY

Am I eligible to use my CPF savings under PPS?

All CPF members who are eligible to buy a private property are eligible to use their CPF savings under PPS.

You are not eligible if:

  • you are buying a private property with a remaining lease of less than 30 years;
  • you are buying a private property with a remaining lease of less than 60 but at least 30 years and your age plus the remaining lease of the private property is less than 80 years;
  • you are a single person buying a private property with a non-related single and you have used CPF for an existing property; or
  • you are a married person buying a private property with a non-related single.

Eligible to buy Private Condominium :

  • If you own a HDB flat, DBSS flat or Executive Condominium, you have to fulfill the minimum occupation period before you can purchase private residential properties.
  • If you are not a Singapore citizen, you have to obtain approval from the Controller of Residential Property before you may buy landed houses (including strata landed houses).

Multiple Properties Buyers

who have use CPF for their house, have to set aside $80,500 each in their Special account before we can use Ordinary account to purchase your next Property.  Click Here for CPF  Properties Scheme

Retirement Sum Scheme

Buyers above 55 years old have to login into CPF account to check on the amount that can be used to purchase a property. While Buyers who are 55 years old today, can use half of the $151,000 to purchase the property.

20% DOWNPAYMENT

Procedure For Completed Residential Property :

Downpayment – 20% of the purchase price :

  • 1% of Purchase Price is the Booking Fee, you will be given a copy of “Option to Purchase”.
  • Within 2 Weeks you have to Exercise the “Option to Purchase”. At the same Time, prepare a “Letter of Offer” if you are taking a loan before meeting the lawyer.
  • 4% of Purchase Price to Exercise in the Lawyer Office.
  • Within 2 Weeks from Exercise Date, you have to pay Stamp Duty and Addition Stamp Duty if any.
  • 15% of Purchase Price, can be in CPF and Cash on the Completion Date. Completion Date is about 3 month from Exercise Date.

Procedure For Under Construction Residential Property :

  1. Progressive Payment Schemes :

Downpayment – 20% of the purchase price :

Upon Booking a unit, 5% booking fee either Cashier Order or Cheque and Option to Purchase will be granted (OTP). We ‘Developer’ will then mail the Sale and Purhcase (S&P) Agreement to your banker’s solicitor or to you within 1 to 2 weeks from the OTP date. Upon received the S&P you are given 3 weeks from the received date of S&P to exercise the S&P.

Within 14 days of signing the S&P agreement (or within 30 days if the agreement is signed overseas). You will have to pay the Stamp Duty/Additional Stamp Duty (Cash/CPF) to IRAS (Inland Revenue Authority of Singapore).

eg Stamp Duty is 3% less $5,400 and Additional Stamp Duty is % of the Purchase Price depend on number of houses and Citizenship.

STAMP DUTY AND ADDITIONAL STAMP DUTY

What is Stamp Duty?

Stamp duty is a Tax on documents relating to the purchase of a property.

It is to be paid by buyer within 14 days after the date of documents (e.g. Sale & Purchase Agreement) if the document is signed in Singapore.

If the document is signed overseas, it has to be paid within 30 days after date of its receipt in Singapore.

Stamp Duty is to be paid to IRAS (Inland Revenue Authority of Singapore). So what is Buyer’s Stamp Duty (BSD)?

Buyer’s Stamp Duty is tax paid on the acceptance to Option to Purchase (OTP)/ Sale & Purchase Agreements (S&P).

These are documents (OTP or S&P) that are prepared and signed when you purchase a property.

The buyer is responsible for paying Buyer’s Stamp Duty. Stamp Duty will be computed on the purchase price.

The Sail Stamp Duty

The Sail Stamp Duty

The Sail Stamp Duty 2

Additional Buyer’s Stamp Duty (ABSD)

The Sail Additional Buyer Stamp Duty

The Sail Additional Buyer Stamp Duty

It is a tax payable when you purchase or acquire a residential property i.e. applicable to both HDB flats and Private Properties.

The rate that you need to pay depends on your nationality (and/or your PR status).

It is to be paid by buyer within 14 days after the date of documents (e.g. Sale & Purchase Agreement) if the document is signed in Singapore.

If the document is signed overseas, it has to be paid within 30 days after date of its receipt in Singapore. Stamp Duty is to be paid to IRAS (Inland Revenue Authority of Singapore).

Within 8 weeks from the date of OTP, you will have to pay the remaining 15% in Cash/CPF. (Post dated cheque of this 15% can be done on the day you exercise the S&P). If you are using CPF to pay for the 15% of downpayment, only a multiply properties buyer (include HDB in the count) individual needs to set aside a minimum sum of $83,000 in Special Account before using the Ordinary Account to pay for the 15%.

e.g. Case 1 :

OA has $100,000 and SA has $50,000, you can only use OA $69,500 to pay for the downpayment.

e.g. Case 2 :

OA has $100,000 and SA has $100,000, you can only use all OA $100,000 to pay for the downpayment.

PROGRESSIVE PAYMENT TABLE

Loan to Value

If you are taking 80% loan, the monthly bank Installment (Cash/CPF) will start after the first disbursement of the 10% completion of foundation work. Monthly bank installment is calculated based on Market Interest Rate (Depend on the Package you sign with the bank) and your Loan Tenure.

If your LTV (loan to Value) is 70% then the balance amount to be paid is 25% (20% Downpayment minus 5% Booking fee) 15% to be paid  upon 8 weeks and balance 10% (Foundation work Completed) will be paid by progressive payment stages.

The Progressive Payment schedule and the % of purchase price payable is illustrated in the table below:

Progressive Payment Scheme :

The Sail Building Under Construction 20%

The Sail Building Under Construction 20%

You can finance a loan to 80% of the purchase price. The Tenure of the loan can be up to 30 years or 65 years old. (By extending the Tenure or age the amount of loan will reduce to 60%).

  • 10% upon completion of foundation work – Estimated 6 to 12 months
  • 10% upon completion of concrete framework – Estimated 6 to 12 months
  • 5% upon completion of brick walls – Estimated 3 to 6 months
  • 5% upon completion of ceiling – Estimated 3 to 6 months
  • 5% upon completion of door and window frame – Estimated 3 to 6 months
  • 5% upon completion of Carpark – Estimated 3 to 6 months
  • 25% upon receiving Notice of Vacant Possession and Temporary Occupation Permit (TOP) – Estimated 3 to 6 months
  • 15% upon Completion Date, you will receive Certificate of Statutory Completion (CSC) – Estimated 12 months

 

THE SAIL PROGRESS PAYMENT

THE SAIL NORMAL PROGRESSIVE PAYMENT

LOAN TO VALUE

Loan To Value Table

On 11 Jan 2013, the Monetary Authority of Singapore (MAS) tightened the Loan-to-Value (LTV) limits for borrows who already have at least one outstanding housing loan.

  1. i) On 28 June 2013, the Monetary Authority of Singapore (MAS) introduced a Total Debt Servicing Ratio (TDSR) for all property loans granted by financial institutions to individuals. Banks need to ensure that borrowers’ total monthly debt repayments do not exceed 60% of their gross monthly income (Fixed Income)

Loan-to-Value Limits :  Depends on the number of loan you have and Total Debt Servicing Ratio (Private housing loan) :

1st Housing Loan : LTV is 80% minimum cash 5% (60% if tenure > 30years or extends past age 65 minimum cash 10%)

2nd Housing Loan: LTV  is 50% minimum cash 25% (30% if tenure > 30 years or extends past age 65 minimum cash 25%)

3rd Housing Loan : LTV 40% minium cash 25% (20% if tenure > 30 years or extends past age 65 minimum cash 25%)

For corporate entities, LTV 20%

The Sail Loan To Value

The Sail Loan To Value

The Sail Loan to Value

The Sail Loan to Value

TOTAL DEBIT SERVICE RATIO

How is Gross Monthly Income calculated ?

  • Fixed Month Income : 100% of monthly income excluding CPF contributions
  • Variable Monthly Income : Variable Income include  commission, bonus and rental, Max 70% average monthly variable income in the last 12 months excluding CPF contribution or Max 70% employment in the latest NOA divided by 12 by 12
  • Fixed + Variable Monthlly Income : Total (i) + (ii) or Employment income in the latest Notice of Assessment divided  by 12
  • Rental Income : Not more than 70% can be included, Stamped tenancy agreement with remaining rental period of at least 6 months
  • Value of Financial Assets : For unencumbered financial assets, apply % deduction on the value of the assets, either 0%, 30% or 70% deduction. After deduction, amortise the value of assets over 48 months.

The outstanding debts that TDSR will take into account include:

  • Credit Card Balances (including ‘instalment plans’ with retailers).
  • Student lLoans.
  • Personal Loans.
  • Car Loans.
  • Other Home Loans (if applicable).

‘Stress Test’ for Residential Properties is 3.5% and Commercial Properties 4.5%. It is used to determine a rise in interest rates without busting the 60% TDSR limit.

The Sail Weighted Average Age

The Sail Weighted Average Age

The Sail Total Debt Service Ratio

The Sail Total Debt Service Ratio

Borrower A, age 30 earns $3000 per month Borrower B, age 40 earns $5000 per month IWAA = (30 x $3,000) + (40 x $5,000) = 36.25 years $3,000 + $5,000  OCBC’s practice: IWAA to be rounded up, i.e. 37 years •65 years minus 37 years = 28 years (max LTV); or •75 years minus 37 years = capped at 35 years

The Sail TDSR Chart

The Sail TDSR Chart

The Sail MSR Chart

The Sail MSR Chart

REMISSION OF ADDITIONAL STAMP DUTY

Additional Buyer Stamp Duty

IRAS can reimburse for ABSD

ABSD Rates for Joint Purchases Made by Married Couples and ABSD Refund for Purchase of Second Residential Property

ABSD remission applies to co-purchase of residential property by married couples involving SC and SPR spouses under some scenarios denoted with # in the Tables below.

From 12 Jan 2013, a married couple with a SC spouse is eligible for ABSD refund on their second property if they sell their first property within 6 months of the date of purchase/TOP/CSC, whichever is applicable

Table 1: Married Couple who are both SC

The Sail Married Couple who are both Singapoean

The Sail Married Couple who are both Singapoean

  • Properties owned included those owned wholly, or owned partially or jointly with others.
  • # Subject to approval of the application for remission (by way of lower ABSD rate or full remission).

Table 2: Married Couple who are SC – SPR

The Sail Married Couple who are SC - SPR

The Sail Married Couple who are SC – SPR

 

Table 3: Married Couple who are SC-FR

The Sail Married Couple who are SC - FR

The Sail Married Couple who are SC – FR

*Properties owned include those owned wholly, or owned partially or jointly with others.

# Subject to approval of the application for remission (by way of lower ABSD rate or full remission)

Table 4: Married Couple who are SPR – FR

The Sail Married Couple who are SPR - FR

The Sail Married Couple who are SPR – FR

*Properties owned include those owned wholly, or owned paritally or jointly with others

#Subject to approval of the application for remission (by way of lower ABSD rate or full remission)

SELLER STAMP DUTY

Seller Stamp Duty

The Sail Seller Stamp Duty 2010

The Sail Seller Stamp Duty

The Sail Seller Stamp Duty

BANK MORTGAGE RATES

Bank’s Mortgage Rates

SIBOR stands for Singapore Interbank Offered Rate and is a daily reference rate based on the interest rates at which banks offer to Lend unsecured funds to other banks in the Singapore wholesale money market (or interbank market).

It is similar to the widely used LIBOR (London Interbank Offered Rate), and Euribor (Euro Interbank Offered Rate). Using SIBOR is more common in the Asian region and set by the Association of Banks in Singapore (ABS).

SIBOR comes in 3 -month tenure. At the end of the tenure, the borrowing bank returns the borrowed fund to the lending bank.

SiBOR (Singapore Interbank Offered Rate).

The Sail UOB Housing Loan Rate December 2017

The Sail UOB Housing Loan Rate December 2017

WAYS TO FINANCE OUR PROPERTY

What are the other ways to finances and protect our Properties?

  1. Pledge and Unpledge
  2. Overseas Cash
  3. Gurantor become owner
  4. Refinancing
  5. Decoupling
  6. Mortgage Insurance

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