I have an overdraft to buy a private property. Can I use my CPF savings to redeem the overdraft?
You can use your CPF savings to repay the overdraft if it was used solely to purchase the private property. To do so, you need to authorise your lawyer (by signing the Letter of Authorisation, Declaration, Consent & Agreement) to submit an online application on your behalf. Your lawyer will need to attach the following documents in the application:
- Financier's letter of offer.
- Financier's letter to confirm that the overdraft was used strictly to buy the property or was partially used to buy the property. If the overdraft was used partially to buy the property, please attach the monthly statement of account of the overdraft account from the time it was disbursed for payment of the property to the date of application to use CPF savings.
- Financier's statement showing the current outstanding amount of the overdraft.
Once the application is approved, you will need to get your financier to convert the overdraft facility to a housing loan.