Redeem Housing Loan

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Redeem Housing Loan

Postby heyhoe » Mon Apr 01, 2013 11:28 am

Hi,

Appreciate some guidance here.

I'm thinking of redeeming my housing loan with UOB using our CPF fund. Should I use UOB panel list of lawyers or get my own lawyer? If I should get my own lawyer any recommendation?

Also, I understand that there might be a delay in CPF releasing the sum. How can I do so to realign the payment accordingly. I don't have so much cash to pay unless using CPF.

Thanks!

heyhoe
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Re: Redeem Housing Loan

Postby cherrygal » Mon Apr 01, 2013 9:19 pm

For private properties, you should try to use the same lawyer you used when you purchased the home. They would have the records.

Just fill up a few forms with the bank (to instruct block repayment / redemption and deduct $$ from which bank account etc) and transfer the CPF online using your Singpass.

Once the bank has received the respective monies from your account and CPF, they will send you a letter to instruct you to get a lawyer to handle the closure. The bank will hand the title deed to the lawyer and your lawyer will hand the title deed to you.

Get a safe deposit box to store the deed. Alternatively, CPF Board can store your title deed at a fee.

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Re: Redeem Housing Loan

Postby Just4Fun » Mon Apr 01, 2013 9:48 pm

cherrygal wrote:For private properties, you should try to use the same lawyer you used when you purchased the home. They would have the records.

Just fill up a few forms with the bank (to instruct block repayment / redemption and deduct $$ from which bank account etc) and transfer the CPF online using your Singpass.

Once the bank has received the respective monies from your account and CPF, they will send you a letter to instruct you to get a lawyer to handle the closure. The bank will hand the title deed to the lawyer and your lawyer will hand the title deed to you.

Get a safe deposit box to store the deed. Alternatively, CPF Board can store your title deed at a fee.

Hi cherry gal, any idea how long does it for the bank to hand over the deed upon full redemption of the loan ?

Just4Fun
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Re: Redeem Housing Loan

Postby cherrygal » Mon Apr 01, 2013 10:11 pm

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.

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Re: Redeem Housing Loan

Postby ngl2010 » Tue Apr 02, 2013 12:57 am

heyhoe wrote:Hi,

Appreciate some guidance here.

I'm thinking of redeeming my housing loan with UOB using our CPF fund. Should I use UOB panel list of lawyers or get my own lawyer? If I should get my own lawyer any recommendation?

Also, I understand that there might be a delay in CPF releasing the sum. How can I do so to realign the payment accordingly. I don't have so much cash to pay unless using CPF.

Thanks!

I'm just thinking... I maybe wrong... CPF gives 2.5% interest and UOB's housing loan interest is lower than 2.5%. Why redeem the loan?

ngl2010
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Re: Redeem Housing Loan

Postby heyhoe » Tue Apr 02, 2013 8:42 am

Hi cherrygal,

Thanks for the info.

Mine is a HDB but using UOB loan. So, that means it is best I check with CPF first on when is the deduction date. I'm paying using CPF thus need to coordinate this well.

In this case, is it better if I use UOB panel lawyer or use the previous lawyer when i purchase the house? Alternatively, can you recommend? I need someone who will ease the transaction for me - coordinate CPF and UOB for me.

Thanks for the info, I didn't know that the deed can be stored at CPF.

heyhoe
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Re: Redeem Housing Loan

Postby heyhoe » Tue Apr 02, 2013 8:43 am

ngl2010 wrote:
heyhoe wrote:Hi,

Appreciate some guidance here.

I'm thinking of redeeming my housing loan with UOB using our CPF fund. Should I use UOB panel list of lawyers or get my own lawyer? If I should get my own lawyer any recommendation?

Also, I understand that there might be a delay in CPF releasing the sum. How can I do so to realign the payment accordingly. I don't have so much cash to pay unless using CPF.

Thanks!

I'm just thinking... I maybe wrong... CPF gives 2.5% interest and UOB's housing loan interest is lower than 2.5%. Why redeem the loan?


Hi ngl2010,

My loan left less than $100K, and the rate is going up. Thus ,prefer to settle everything. Loan Free :)

heyhoe
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Re: Redeem Housing Loan

Postby hquek » Tue Apr 02, 2013 9:47 am

Best is to call UOB up and enquire. Redemption of loan cannot suka suka - I assume you won't incur early repayment penalty. Still, you will need to inform the bank in advance. Same goes for prepayment (ie not redemption), die die must inform the bank at least one month in advance.

I didn't use the same lawyers as when I bought the flat but I was taught to use the same lawyers who can handle bank and CPF matters (save a bit of fees).

Feel free to call up the lawyers to check their rates. This is simple matter but the rates may differ.

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.

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Re: Redeem Housing Loan

Postby heyhoe » Tue Apr 02, 2013 10:05 am

Hi hquek,

Thanks for your reply.

Yes, I did call UOB earlier. They told me that I've to engage a lawyer to give them 3 months notice.

Thus, like what you said I prefer to use the same laywer that can handle both bank and CPF matters. Any recommendation from you?

heyhoe
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Re: Redeem Housing Loan

Postby hquek » Tue Apr 02, 2013 10:50 am

umm, I've never loaned from UOB before. better get their panel from them.

and yes, your case reminded me of mine. Less than $100K, no bank will entertain you and the interest rates just keep going up. I got fed up and redeemed my loan as fast as I could. Now very shiok feeling not to have to service the bank loan anymore. Jia you and join the crowd.

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