Redeem Housing Loan

[cherrygal]

Yup good to be debt free. And once you settle this loan, you can think of buying a private property (2nd property) with 80-20 loan coz it will then be considered your "first" loan again. Many of my friends with HDB flats did that.

[cherrygal]

hquek:

I didn't use CPF to keep the title deed, just stored at home. figured these days it's more electronic than anything. Dun think anyone can just take my title deed and sell my flat aka those tv shows.

Haha yes, but my mom was afraid of fire, flood etc... so she preferred to put it in a safe deposit box. She said safe deposit box is better than CPF Board coz can put other important things like jewellery etc.

[heyhoe]

I just spoke to the lawyer and he advised me to do a partial redemption first.


He said just liaise with CPF and UOB and get forms filled up. This is suppose to help me save some cost. Thereafter, I can use the balance with cash to settle.

Just wondering, if this is the usual way?

Oh yeah, the charge for the lawyer fee will be about $1K. This seems much cheaper than when I first bought the place.

[hquek]

cherrygal:

Yup good to be debt free. And once you settle this loan, you can think of buying a private property (2nd property) with 80-20 loan coz it will then be considered your \"first\" loan again. Many of my friends with HDB flats did that.

Now 2nd property will attract the additional stamp duty, and to touch cpf, have to make sure got min sum (percentage I think) in first. Else it willl be pure cash purchase.

[cherrygal]

Yup, CPF cannot be used easily for 2nd home purchase so it’s best to use the CPF to settle the loan of the first home. Save your cash for the 2nd home.

[heyhoe]

Hi Ladies,


Thanks for all the information.

I've decided to go with the UOB appointed lawyer and hopefully :xedfingers: it will go thru smoothly.

Looking forward to be debt free :boogie: . I dare not hope for next property but if I strike Toto, then maybe.

[hquek]

Congrats in advance on your debt free status.


Don’t think so hard about property investment, I still don’t feel it’s all a bed of roses where this is concerned (tenant matters, new mortgage hanging over head etc).

[Just4Fun]

cherrygal:

My mom settled with cash and she says it only took less than a month. Cash is very fast and banks are very efficient.


I did block repayments with both cash and CPF and it is the CPF part that took the longer time. CPF Board has some cut-off day that will result in the deduction happening only the following month or so. So if you miss that cut-off day, then got to wait for the next period. So if you intend to use CPF, allow them some time to process.

Thanks so much Cherrygal.. :thankyou:
Both DH & self were clueless on this...we hv redeemed our loan since sept & heard anything abt this deed ! Upon yr reply, DH quickly called our lawyer ... and she simply said she had forgotten abt it !!!
Today my DH has to rush to her office to retrieve it.
Imagine if I did not read this forum... goodness what can happen to this deed !

[qms]

heyhoe:

I've decided to go with the UOB appointed lawyer and hopefully :xedfingers: it will go thru smoothly.

Don't worry. As long as you have appointed the lawyer, it is the lawyer's job to ensure the smooth completion of the redemption. Else, why do you have to pay them?

[heyhoe]

Thanks, qms.


By the way, UOB confirmed that they’ll return the title deed to me once the redemption is settled. I’m thinking should I keep in safe deposit box? Besides bank, any other place have safe deposit box service? It’s difficult & costly to get one from the bank.

My colleague told me she kept hers with HDB as hers’ was with HDB loan. Also read somewhere that CPF doesn’t keep title deed anymore?