Read? Housing Loan And Accrued Interests Refund To CPF very near to 55
Singapore Man of Leisure2 July 2020 at 22:54:00 GMT+8
CW,
I've discovered the communication breakdown in your "Turning 55 - and enjoying financial freedom (2) post ;)
Avoid using the word "housing loan".
To a not so high payscale counter staff, the logic is simple - no outstanding housing loan how to do partial repayment???
Sir, have you taken your medicine this morning?
That's why Straits Times used proper england:
CASH REFUNDS FOR CPF SAVINGS USED FOR PROPERTY PURCHASES.
:)
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Use proper England this time to ask CPF
CASH REFUNDS FOR CPF SAVINGS USED FOR PROPERTY PURCHASES.
I am 64 and also met FRS in my RA.
How can I proceed to do cash refund for CPF savings used for my HDB flat?
Pls help to advise the procedure to do this cash refund..
Thank you!
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Posts
Thanks Uncle8888 for reminder. I may want to do some cash refund as I near 55 ... treat as FD or short term bond.
ReplyDeleteHaha cpf got enough money, don't need extra $$$$ from cash rich retirees like Uncle8888! Lol.
Cpf knows there're lots of retirees wanting to use cpf as high yield bank.
Hence they block housing refund, top up to sa, and even oa to sa.
Can only do normal contribution. But many don't do coz they don't have max Medisave. A big chunk will go into Medisave instead of OA.
Children can still help you to top up, you get CPF interest and they get income tax rebate. :)
ReplyDeleteHmm, the CPF rules and policies are indeed confusing. Their reply to you made it sound like those who have met the FRS in their RA upon turning 55 would be "absolved" of any CPF money that they used to buy property. Or are the rules different for private property buyers / owners? Or they changed the rules along the way?
DeleteFor my case, my wife and I were still refunding money that we used for our property purchases, into our CPF OA, even after 55 yo. And I had ERS in my RA and my wife had more than FRS in her RA. If I recalled correctly, at that time, the rules were as follows when we were refunding money back into our CPF OA:
1. You can refund partially the principal or
2. You can refund full principal or
3. You can refund full principal and full accrued interest. In other words, accrued interest can only be refunded (and in full) only when you have made full refund of the principal sum used for property purchase.
I understand now CPF have tweaked the rules to allow partial refund of the accrued interest after the full principal sum was refunded.
For Siew Mun, I would suggest you write in to CPF to confirm whether they would absolve your CPF " home loan" once you turn 55. I suspect they would not. In that case, you will still have time to slowly refund the money that you used for your property purchase, instead of having to rush to refund the money before you turn 55.
CW,
ReplyDeleteMoral of the story?
England is hard...
Clear writing and communication even harder...
If we looked at the official CPF Q & A, it does give the impression anyone and everyone can do it... No questions asked!
Voluntary refund of the housing amount withdrawn
I am deducing its more a scheme for those who wishes to top up their CPF RA at or before age 55 to hit the FRS or ERS minimum levels?
If so, well, CPF could have made it clearer leh ;)
But, but mysecretinvestment after 55 and hit ERS oredi can leh???
Case of moving goal posts?
P.S. I think Spur owes you a drink for this Trust but Verify exercise! He's the only one that benefitted from it! LOL!
Spur, small request. After you do your cash refund, can you come here and share with CW your experience?
Let CW has his closure ;)
My bad, I realised I wrote Siew Mun when I should be referring to Spur who is approaching 55. Is Siew Mun also going to be 55 this year? If so, this knowledge of the rules / policies relating to the refunding to CPF money used for property purchase would be equally applicable. Sorry for the slip up.
DeletePerhaps the below link will put to rest the question on whether one can refund money to CPF after 55, the money that was used for property purchase. As long as your CPF statement reflects money taken out for property (and the accrued interest) even after 55, you can refund money to your CPF.
ReplyDeletehttps://www.cpf.gov.sg/members/FAQ/schemes/Housing/Housing-Scheme/FAQDetails?category=Housing&group=Housing%20Scheme&folderid=11482&ajfaqid=3872902
For the case of CW and myself, since we dont "owe" our own CPF any money used for housing, we would not need to return any money to our CPF if we do sell our properties.
Now it is clearer. O$CPF$P$. LoL!
Delete1) Thanks mysecretinvestment!
Delete2) CW,
Another moral of the story.
Yah hor! Buy HDB flat at bargain price of $55K, hard to ownself "owe" ownself CPF money! LOL!
Which also means CPF accrued interest thingy a non-event ;)
So for those who want to take advantage of this voluntary CPF cash refund scheme... That meant...
I think we don't ask them for coffee liao!
Turned out its good, better, best if we CAN'T do cash refunds CPF savings used for property purchases :)
LOL!
Thanks for highlighting mysecretinvestment.
ReplyDeleteThat Faq is more for those who sell after 55.
It's also a roundabout way of saying "just follow law".
I mean after already hitting FRS & older than 55 ... still refund, and then after that kerblakang pusing & take out...
I submitted enquiry regarding voluntary refund after hitting FRS and/or hitting ERS.
Let's see their reply. :)
Put back into your wife's RA?
ReplyDeleteThe Retirement Sum Topping-Up (RSTU) Scheme helps you build up your own or your loved ones’ retirement savings through higher monthly payouts and/or extended payout duration.
ReplyDeleteYou can top up via CPF transfer or cash to your own and/or your loved ones’ Special Accounts (SA) (for recipients below age 55) up to the current Full Retirement Sum (FRS), or Retirement Accounts (RA) (for recipients aged 55 and above), up to the current Enhanced Retirement Sum (ERS).
Hi. I am confused and pardon me if I asked stupid questions. Why do we want to refund the CPF used to buy property? Is it to earn the 2.5% interest?
ReplyDeleteI thought Cash is King esp now? And invest?
Not 55 yet. House fully paid. Met ERS. What is best?
Pretty blur and only start reading and thinking near 55. 🤣🤣🤣
Ha ha! You are definitely not confused over investing and saving when you said "I thought Cash is King esp now? And invest?"
DeleteRead? The Dilemma Of Young Personal Financial Investment Influencers
Another angle of view for refunding large CPF housing loan back to CPF OA is asset allocation of spare cash marked as war chest.
35% of refunded CPF housing loan as part of larger war chest will be residing in CPF OA/CPFIS waiting patiently for the next bear market while earning 2.5% yield; and the other 65% as "bond" earning 2.5% yield.
If we are comfortable with 35% equities in CPFIS and 65% bond in CPF OA during retirement phase for deploying larger war chest after 55; then we can start thinking seriously about this asset allocation before 55. Your remaining cash is still King!
War chest = 35% CPFIS + 65% Bond + Cash is King! LOL!
35% in CPFIS earning 2.5% is handsome King under current low interest rate!
DeleteYou just need to login into your CPF and check any outstanding housing loan.
ReplyDeleteRead? Turning 55 - and enjoying financial freedom (4)
You no need to return.
ReplyDeleteDetails of the financial plan may include retirement plan contributions, portfolio of investments, a budgeting plan for all current living expenses, and projected savings growth. invest
ReplyDelete