RES exam question on HDB Policies: cost may be paid from their CPF Ordinary Accounts
Bala and Mei, first-timers, are buying a 4-room resale flat with an HDB loan and hold ample CPF Ordinary Account savings. Their salesperson lists the costs they will meet around completion and after moving in. They ask which of them may be paid from CPF. Which cost may be paid from their CPF Ordinary Accounts?
- AThe $15,000 cash-over-valuation, since it forms part of the price they pay the seller
- BThe monthly service and conservancy charges billed by the town council after they move in
- CThe renovation of their kitchen and bathrooms by an HDB-listed contractor after completion
- DThe Buyer's Stamp Duty on the purchase, which is computed on the higher of price and valuation
Show answer & explanation
Answer
D. The Buyer's Stamp Duty on the purchase, which is computed on the higher of price and valuation
Explanation
Answer: The Buyer's Stamp Duty. Stamp duty on the purchase is a purchase cost that CPF Ordinary Account savings may pay.Watch out: COV is part of the price, yet CPF cannot pay it because it sits above the valuation.Rule: CPF OA savings may pay the downpayment, the price up to the Valuation Limit, the monthly instalments, and the stamp duty and legal fees on the purchase. They may not pay the cash-over-valuation, or running and renovation costs.Source: CPF Board, using CPF for housing, read 1 Oct 2026; /learn/cpf-housing-grants-and-hdb-resale
Why the other options are wrong
- The $15,000 cash-over-valuation: COV is part of the price, but it is the part above the Valuation Limit, so it is cash only.
- Monthly service and conservancy charges: These are a running cost of the flat, not a purchase cost.
- Renovating kitchen and bathrooms after completion: Renovation is not a purchase cost at all, even by an HDB-listed contractor.
Study the concept behind this question: CPF Housing Grants & the HDB Resale Process
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