Will paying for my BTO affect my RSTU via CPF transfer which is only allowed if OA & SA combined balance meets the BRS at $88k? - Seedly
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Ting Han

Asked on 30 Aug 2019

Will paying for my BTO affect my RSTU via CPF transfer which is only allowed if OA & SA combined balance meets the BRS at $88k?

I'm currently doing RSTU via CPF transfer on a monthly basis. Came across this article on Seedly today saying that CPF transfer works (I presume it means CPF transfer is allowed) only if my combined OA and SA balance meets the BRS. Currently, my combined balance meets the BRS. But in a few months time, I will be collecting keys to my BTO and wiping out a considerable sum from my OA. Might end up with <$88K. Would I then not be allowed to do CPF trfs after using a huge chunk of the $ for house?

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I think you have a misunderstanding.

RSTU is just a transfer which allows tax relief of up to 7k per year, till FRS.

Buying a BTO requires a 10% Downpayment (for HDB loan) or 20% for Bank loan.

Only OA funds/cash are allowed to be used for housing payments.

SA remains stuck and can't be used.

Not sure if I answered your questions.

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Loh Tat Tian
Loh Tat Tian

12 Sep 2019

The limit still applies to SA. It is limited by FRS, be it cash or OA transfer.
Loh Tat Tian
Loh Tat Tian

12 Sep 2019

E.g SA: $50,000 > the max you can top up is 127,000 to form the Full Retirement Sum. OA: doesn't matter whats the amount