HDB Downpayment

For resale HDB purchases, the financial timeline is pretty standard:

1. Option Fee – $1,000 (Cash)

Paid upfront to secure the unit.

2. Exercise Fee – $4,000 (Cash)

Paid when you decide to proceed with the purchase.

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Total initial outlay (“downpayment” before completion): $5,000

Along the process, there will also be miscellaneous fees such as:

• Valuation fee
• Resale application fee
• Buyer’s Stamp Duty (BSD)
• Legal/conveyancing fees

Each of these is paid at different stages according to HDB’s timeline. Please make sure you are well aware of the entire timeline & process.

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Covering Your Shortfall

Based on your situation, the shortfall (Purchase Price – HDB Loan Amount) can be covered using your CPF OA, as long as you have sufficient funds.

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Do note:

• CPF usage limits vary by age
• Buyers above 55 may have funds set aside in the Retirement Account
  So it’s best to verify with CPF how much you can utilise.

If your CPF OA balance is not enough, the remaining amount must be paid in cash via Cashier’s Order on completion day.

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Other Factors to Consider

To avoid overstretching yourself financially, it’s important to check:

• Whether your monthly CPF contributions can fully cover the mortgage
• Whether you’ll need to top up cash monthly
• Additional expenses such as renovation and furnishing
• Moving costs and emergency buffer

A proper financial assessment ensures you stay comfortably within your means.

Not for downpayment but i think for final payment.