Other conditions on use of CPF for bank loan – Property for sale Singapore
a) In the event that a member passes away after his application to use his CPF for the flat is accepted by the Board, but before the payment is released from his account, no payment will be released from his account for the purchase or payment of the flat or housing loan. Property for sale Singapore.
b) Members who already own a property bought with their CPF savings and wish to buy another property with CPF savings on or after 1 July 2006, will be given a grace period if they intend to sell the existing properties. The grace period is as follows:
i) 6 months from date of issue of the Temporary Occupation Permit (TOP) if the new property is under construction
ii) 6 months from date of completion of purchase if the new property is a completed property.
Where members bought their first property before 1 July 2006, and apply to use CPF for the first property only after making an application to use CPF for the second property bought after 1 July 2006, the multiple property (MP) rule will apply to the second property. Property for sale Singapore.
c) For member who has applied to use CPF for monthly repayment of housing loan, the Board will cease the CPF monthly deduction when there is no CPF contribution for 6 consecutive months and no balances that can be used for housing. If he wishes to use his CPF for the monthly repayment of housing loan subsequently, he is required to apply again by submitting a HBL/3 form. Property for sale Singapore.
Notification of sale and refund of CPF monies for bank loan – property for sale Singapore
A member who has used CPF for the flat, and his financier (if any) are required to notify the Board of the intended sale, transfer, assignment or otherwise disposal of the flat four weeks prior to the completion of the transaction. The member and/or his financier are to furnish the Board with the redemption statement of the housing loan four weeks prior to the completion of sale, transfer, assignment or otherwise disposal of the flat. Property for sale Singapore.
The requisite CPF refund is the principal CPF amount withdrawn together with the accrued interest, if the flat is sold during the member’s lifetime regardless of his age.
Penalty for false declaration for bank loan
Any member who has purchased a property under the Approved Housing Schemes by making a false statement or declaration, or furnishing any information or document which he knows to be false in material or who allows such property to be used for any immoral, illegal or unauthorized purposes, or who contravenes any of the conditions under the Approved Housing Schemes, shall be guilty of an offence under the CPF Act. The Board shall in such circumstances, be entitled to seize the property and sell it to recover the amount of CPF savings that has been withdrawn plus accrued interest. Property for sale Singapore.
Source: CPF website
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