Differential Sum: Not Dim Sum
To be honest, these two things have nothing in common, I was thinking of a catchy headline and the only thing that popped in my head was dim sum. Probably because I was hungry at the time I was writing this. But let's concentrate!
SO, a differential sum is payable upon the signing of agreement and is the difference between your property price, and loan amount (including 10% down payment). It has to be paid to your property developer before you sign your loan agreement. Take a look at the illustration below to see how it’s calculated!
If your approved loan is 90%, and your down payment is 10%, no differential sum needs to be paid. Yay!
Okay, so let's get down to business. There are two common ways that you can pay for it.
You will need to bank transfer the balance to the developer's account and send them the receipt for proof of payment.
You can withdraw the amount from your Account 2 in EPF at your nearest EPF center. It’s a simple application process that usually takes 3 to 7 days but do remember to bring a copy of your SPA and housing offer letter.
And that's about it for this blog post! But if you need more information, don't hesitate to drop a text!