1st Charge or 2nd Charge?

All properties* bought before 2002 have CPF as first charge .
All properties bought after 2002, and those bought before 2002 but were refinanced after 2002 have the Bank as first charge.

*All properties except HUDC phases III & IV which were mortgaged to the POSB.

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Saturday 16 Feb

Well, it's bad news. It seems HUDCs were an exception to the general CPF rules that applied to all properties as far back as 1996 (and maybe even earlier). So, at least 6 years before other private banks were given first priority, the HDB were quietly cutting the strings to HUDC properties and approving deeds with the following order of priority for distribution of sale proceeds:

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1) First charge: all monies owing to the HDB
2) Second charge: Credit POSB, Government or Statutory Boards
3) Third charge: CPF
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The CPF Board approved the purchase of my unit 'subject to your complying with the CPF fund act (Cap.36) and any amendments or reenactment thereof and the rules and regulations made under the Act from time to time relating to withdrawels of CPF savings under the Public Housing Scheme."

Under the Public Housing Scheme, the loans obtained for the purchase of a resale HUDC Phases III/IV flat must be from any of the following approved mortgagees (in 1996):
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a) Credit POSB (remember it was Government owned at the time)
b) Government or Statutory Boards.
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So how did around 120 units in TC manage to get a private bank as second charge? Well, in 1996 (my own particular point of reference) the only Bank approved for HUDC mortgages was Credit POSB, there was no other choice - so exactly when were these other private Banks allowed to take on HUDC mortgages? I'm guessing after POSB was subsumed by DBS but before 2002. POSB holders who refinanced with another bank during this window period could, perhaps, have benefitted also from the CPF first rule too ....a serendipitous move to have made on hindsight, if true. Or else, owners just negotiated for CPF first charge - less likely but still possible. Truth is, I don't know.
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Anyway, the upshot is, our HUDC heads were the first on the chopping block .....and long before everyone else.