Concept
Cash Over Valuation (COV)
COV is the gap between the price you agree and the property's valuation — payable entirely in cash.
Why COV is cash only
A bank lends against the lower of the purchase price and its valuation, and CPF can only be used up to the valuation. So if you agree to pay more than the property is valued at, that excess cannot be financed — it comes straight out of your pocket, on top of the downpayment and stamp duty.
On a S$620,000 price with a S$600,000 valuation, the S$20,000 COV is cash you need in addition to everything else.
Key points
- COV is paid in cash — no loan, no CPF, no grant.
- It also does not reduce your stamp duty: BSD and ABSD are charged on the higher of price and valuation.
- For HDB resale, the valuation is requested only after the Option to Purchase is granted, so buyers commit to a price before knowing the COV.
Frequently asked questions
What does Cash Over Valuation mean?
It is the amount by which your agreed purchase price exceeds the property's official valuation. Because the loan and CPF are both capped at the valuation, the excess must be paid in cash.
Can I use CPF to pay COV?
No. CPF can only be used up to the valuation. Any amount above valuation is cash.
Does COV lower my stamp duty?
No. Buyer's Stamp Duty and ABSD are calculated on the higher of the price and the valuation, so paying over valuation means duty on the full price.