Dear readers, with the increase of interest rates, housing mortgage rates have also increased.
Hence it is without a doubt that some home owners are reviewing their mortgage loan packages. For others who are looking at purchasing their next properties, undoubtably, they will have to factor in high interest rates as well.
In the scheme of things, there is one useful CPF tool which you may just want to check out in the current backdrop of high interest rates.
Not sure whether you know, as long as you have used CPF monies for down payment and monthly mortgage, you would need to pay a housing refund back to CPF when you sell your house.
That’s right, you would need to pay a housing refund even if you have paid for all the outstanding housing loan as long as you have used your CPF monies for down payment and monthly mortgage.
The housing refund amount is based on the CPF amounts which you have withdrawn for your housing down payment and monthly mortgage, together with all the accrued interests over the years. The monies you make for the housing refund will go back to your CPF accounts and can be used for your next housing purchase.
You could also do a voluntary housing refund to CPF anytime even if you are not selling your house and you could earn interests with this voluntary house refund in your CPF accounts while waiting to use these monies for your next property purchase.
To check for the housing refund, go to CPF website -> My Request -> Property for more details of the amount under the housing refund.
I really hope that you find the aforementioned sharing useful when planning for your property-related transaction.