Cloud
Cloud
Cloud
Cloud
Cloud
Cloud

Differential Sum Explained

Differential Sum: Not Dim Sum

Category: Pt 3: Getting Legal | Tags: Banks, Finance, Loans, The Journey

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 the 10% down payment which normally, has already been covered ;D ). The full sum 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! But the loan approved is only 85% then you’d have to pay the balance of 5% to the developer before you can proceed.

Okay, so let’s get down to business. There are two common ways that you can pay for it:

Option 1:

You will need to bank transfer the balance to the developer’s account and send them the receipt for proof of payment.

Option 2:

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!

How useful was this post?

Click on a star to rate it!

Average rating 4.5 / 5. Vote count: 4

No votes so far! Be the first to rate this post.

We are sorry that this post was not useful for you!

Let us improve this post!

Tell us how we can improve this post?

 

Say Hi to us via: