WE REFER to the letter "Allow HDB Grant to pay for COV" (my paper, April 30).

The CPF Housing Grant is a housing subsidy to assist eligible first-timers to buy a resale flat from the open market.

The grant will be treated as part of the flat buyer's CPF funds which need to be reinstated into his CPF account when the flat is sold.

Hence, the CPF housing grant cannot be used to cover the cash payment above the market valuation of a resale flat.

In addition, if the CPF housing grant is allowed to be used to pay for cash-over-valuation (COV), some flat sellers may correspondingly ask for higher COV. This may lead to higher resale prices.

Buying a flat is a long-term financial commitment.

We urge flat buyers to exercise financial prudence and buy a flat within their affordability.

Mr Loh Swee Heng
Deputy Director (Resale)
for Director (Estate
Administration & Property)
Housing & Development Board

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