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DEAR HOMEOWNERS,
Many are concerned about financials and timeline when making a property move.
My experience and strategies will help you transit smoothly to your new place.
If you own a property and are working, I can potentially…
Help you downgrade and retire with cash in hand and a fully paid HDB flat
Help you upgrade from your BTO to a larger HDB or a condo, with cash in hand
Help you move from your BTO home to a similar sized home, with cash in hand
I CAN HELP YOU – BOOK A FREE CONSULTATION WITH ME TODAY!
Through my sharing, you do not have to worry about your future mortgage loans again!
UPGRADING CASE STUDY – THE KWEK FAMILY
The Kwek family were staying in a 4-bedroom condominium they bought in 2020. They were exploring decoupling to free up the other spouse's name for their next property purchase.
We discussed and explored the option with a banker. We quickly realised the finances for decoupling was less ideal compared to selling the current property and buying two other properties.
We calculated and marketed the sale of the 4-bedroom unit such that the funds were enough to purchase one resale condo (with enough CPF to fund the next 5 years' mortgage) and a new launch condominium.
YOU CAN DEFINITELY RELATE TO THIS!
Like many HDB and private homeowners today, you’re probably using your CPF to service your mortgage — and it feels like the smart move.
After all, tapping on your CPF reduces your monthly cash outflow and eases the pressure on your day-to-day expenses. It gives you breathing room.
And while that isn’t wrong, there are two critical factors you must consider before deciding that this is truly the best long-term strategy for you.
HAVING THE RIGHT INFORMATION WILL EMPOWER YOU!
What feels comfortable now may quietly shape — or limit — your future options.
THE COMPOUNDING NATURE OF CPF ACCRUED INTEREST
IMPACTS YOUR FUTURE PROPERTY MOVE!
Your CPF, while is supposed to be your retirement funds, can be used for purchase of residential property. When the amount is used to service a HDB loan at 2.6% loan interest rate:
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you incur a 2.5% compounding interest on the CPF amount used
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this means when you sell your property, you must return the CPF amount used, alongside this accrued interest, back into your CPF Ordinary Account.
This is absolutely fine. But you MUST know what this means!
Let's assume you and your spouse plan to buy a $600,000 4-room resale HDB flat. You paid $5,000 deposit (Option + Exercise Fees) in cash, paid the buyer stamp duty of $12,600 using CPF (a common approach by HDB homeowners), paid the remaining 25% via CPF (which amounts to $200,000 worth of CPF fund is put into your HDB…
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You paid $5,000 deposit (Option + Exercise Fees) in cash
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You paid the buyer stamp duty (BSD) of $12,600 using funds in your CPF Ordinary Account
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You paid the 25% less deposit (totalling $145,000) via funds in your CPF Ordinary Account
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You plan to service the 75% loan ($450,000) via HDB loan at 2.6% over 25 years, which amounts to $2,042 monthly via funds in your CPF Ordinary Account
Your initial principal is $157,600 and you would have paid $612,600 in monthly repayments over 25 years. At the end of 25 years, your accrued interest is = $358,393, more than half the purchase price of your HDB flat!
(Numbers are estimates, based on the Compound Interest Calcuator used here.)
5 Years
Total CPF OA used
$280,120
CPF Accrued Interest (est)
$26,991
10 Years
Total CPF OA Used
$402,640
CPF Accrued Interest (est)
$73,629
25 Years
Total CPF OA Used
$770,200
CPF Accrued Interest (est)
$358,393
Based on the above calcuations, you have to sell your $600,000 flat at $1 million just to "break even"!
This makes no sense. And I have a better plan for you.
Your chance at Retirement: CPF Life
The government has introduced the CPF Life Scheme to ensure all Singaporeans have a guarantees monthly payout for life. In return, you need to meet the Retirement Sums in your CPF Retirement Account.
If you are 55 years old in 2026, the Full Retirement Sum (FRS) is $220,400.
The estimated monthly payout at 65 will be $1,780.
Do you have $220,400 in your CPF Retirement Account?
PROPERTY PLANNING CAN HELP.
Grow your Retirement Account Funds by having the right propert(ies) at the right time!
HAVING DOUBTS?
LET MY RESULTS SPEAK.
Meet me for a NON-OBLIGATORY discussion & I will share.
A 4-step in-depth financial calculation process to recognise your financial standing.
A tried & tested asset progression plan with 4 precise steps to accumulate wealth earlier.
The 3 ways to analyse the available options in the property market and determine the best choice that is suitable for you.
ACHIEVEMENTS
LET’S MEET FOR A FREE DISCUSSION TODAY!