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  • Writer's pictureSufy B.

What is COV?

Updated: Jul 26, 2021

It is Cash Over Valuation.


Simply put, it is the difference between the asking price of the flat and the actual valuation of the flat. For example, if the asking price of the flat is $450,000 and the actual valuation is $400,000, then the COV is $50,000.

Important: Main problem with COV is that it is not covered by your housing loan nor CPF, and it affects the Buyers Stamp Duty (BSD).

The maximum loan quantum for your flat – be it from the bank or HDB – is always based on the lower of the purchase price or valuation.


Whereas stamp duties are always based on the higher of the purchase price or valuation.


(Basically, for ease of understanding, whatever amount that you have to give, it is always based on the higher figure. And whatever amount you get, it is always based on the lower figure. Yep, that's life!)


In summary, as data for COV remains undisclosed, it is important to get an informed agent that knows the right price level of the property in that region. Ensure you have the right agent with you before you secure the OTP (Option to Purchase) so that you don’t incur a loss when you back out!





All views expressed on this site are my own and do not represent the opinions of any entity whatsoever with which I have been, and now, or will be affiliated. The information contained in this website is for general guidance on matters of interest only. The application and impact of laws can vary widely based on the specific facts involved. Given the changing nature of laws, rules and regulations, there may be delays, omissions or inaccuracies in information contained in this site.

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