Property Buying Tip #5: Cash Component

There is no minimum CPF amount required to be used when buying property in Singapore. In other words, you can use all CASH to buy property if you want to.

There is, however, a minimum Cash component when buying property:

  • If you have no outstanding home loan, you can take up to an 80% loan (subject to approval) with a minimum 5% cash plus 15% cash and/or CPF for the down payment.
  • If you have an outstanding home loan, you can take up to a 60% loan (subject to approval) with a minimum 10% cash plus 30% cash and/or CPF for the down payment.

Other than Booking or Option Fees, Stamp Duty and Legal Fees, don’t forget to put aside cash to provide for Property Valuation Fees, Mortgage Disbursement Charges, CPF Disbursement Charges, Property Tax and Maintenance Fees.

By Eileen Tan and Ui Wei Teck, property investors and authors of Enjoying Mid-Life Without Crisis. Get dozens more tips in their new book.

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