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Hi there :)

Let's break down into 3 components for you, which is easier for you to visual. The Cash, The CPF and The Bank

First, when you've viewed a unit which you're extremely pleased with and would like to make an offer, cost at $540,000.

You would have to prepare a 1% ($5,400) cheque for the offer to the seller so that your seller can grant you an option for you to consider whether to exercise within 2 weeks of your offer.

The minimum cash component for a purchase would be 5%. Should you decide to take the offer, or we call it exercising the option, you'll head down to your solicitor (or his) to exercise it within the 2 weeks period to settle the remaining 4% ($21,600) to the solicitors.

You would have to make sure your CPF has the remaining 5% considering the Bank could grant you a 90% loan. Should the valuation of the property be lesser than $540,000, you'll have to top up anything that is extra with your own cash.

The breakdowns for you again:-

Cash - 5% (Minimum)
CPF - 5% (Could be more or less, depending on what remains on your Ordinary Account OA)
Bank - 90% (Depends on whether the Bank could match 90% for you, you can always check with your banker before deciding on any offers)

Should you need any help. Give me a buzz anytime! :)

Regards,
Benson Koh
(m)+65 91253045 
Realty Adviser
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