Marketing, CPF & Finance Cheat Sheet for RES Exam Revision

This Marketing, CPF & Finance cheat sheet provides the essential thresholds, percentages, and rules required to pass Paper 2 of the RES exam. Candidates must master LTV limits, TDSR/MSR ratios, and CPF usage rules to achieve the 75% passing score required by the CEA. The RES exam consists of 80 MCQs, and this topic is a significant component of the 145 practice questions available in the Prepare app.

For RES exam candidates, this topic falls under Marketing, CPF & Finance in Paper 2. You can practice questions on this in the Prepare app. To pass the RES exam in 2026, you must score at least 60 out of 80 marks across the two papers, which requires a deep understanding of financial calculations and marketing ethics. According to CEA's 2025 annual report, the RES exam pass rate was approximately 45%, highlighting the need for precise revision of these technical figures.

A common exam question involves calculating the maximum CPF Ordinary Account (OA) usage. The Valuation Limit (VL) is defined as the lower of the purchase price or the property value at the time of purchase. The Withdrawal Limit (WL) is capped at 120% of the VL. For private properties, once the VL is reached, owners can only continue using CPF if they meet the Basic Retirement Sum (BRS) in their OA and Special Account (including Medisave).

Key facts for revision:

• HDB Concessionary Loan: No WL applies; you can use all OA savings.
• Bank Loan (HDB/Private): WL of 120% applies.
• Remaining Lease: To use the full CPF amount, the property's remaining lease must cover the youngest buyer until at least age 95. If it doesn't, CPF usage is pro-rated.

To pass the RES exam, candidates must remember that the Valuation Limit (VL) is the purchase price or market value at acquisition (whichever is lower), while the Withdrawal Limit (WL) is 120% of that VL for private property bank loans.

Loan-to-Value (LTV) limits are a high-probability exam topic. For a first housing loan from a bank, the max LTV is 75%, requiring a 25% downpayment (at least 5% must be in cash, 20% can be CPF/cash). If the loan tenure exceeds 30 years (25 for HDB) or extends beyond the borrower's age of 65, the LTV drops to 55%, requiring a 10% cash downpayment.

Loan Type	Max LTV	Min Cash Downpayment
Bank Loan (1st)	75%	5%
Bank Loan (2nd)	45%	25%
HDB Concessionary	75%	0% (can use CPF)

Note that as of 2026, the HDB concessionary loan LTV is 75% following recent cooling measures. For RES exam candidates, the LTV limit determines the maximum amount a bank can lend against a property's value, with the current standard being 75% for a first-time borrower under age 65 with a standard tenure.

The Total Debt Servicing Ratio (TDSR) and Mortgage Servicing Ratio (MSR) are critical for determining loan eligibility. TDSR applies to all property loans and is capped at 55% of a borrower's gross monthly income, including all debt obligations (car loans, credit cards, etc.). MSR applies specifically to HDB flats and Executive Condominiums (ECs) bought directly from developers, capped at 30% of gross monthly income.

When calculating income for TDSR, a 30% haircut is applied to variable income (commissions, bonuses). For the RES exam, remember that TDSR is the universal limit for all property types at 55%, while MSR is an additional 30% cap specifically for HDB and EC buyers to ensure sustainable monthly repayments.

Upon the sale of a property, the owner must refund the principal amount used from CPF plus accrued interest (currently 2.5% per annum) back into their OA. If the property is sold at market value but the proceeds are insufficient to cover the CPF refund, the seller usually does not need to top up the shortfall in cash, provided it was an 'at-market' transaction.

However, any Option Fee or Deposit received in cash from the buyer must be used to offset the CPF refund before the seller can keep any cash. For RES exam candidates, the CPF refund includes the principal plus 2.5% compounded interest, ensuring that retirement savings are restored after a property sale, even if the sale proceeds are lower than the total refund amount.

Marketing revision focuses on the Estate Agents Act (Cap. 95A) and the CEA Code of Ethics. Key prohibitions include:

• No Dual Representation: An agent cannot represent both buyer and seller in the same transaction.
• No Referral Fees: Agents cannot accept fees from moneylenders or receive kickbacks from renovation firms without disclosure.
• Advertising Rules: Ads must be truthful, include the agent's name, CEA registration number, and agency license number.

Marketing also involves the 4Ps: Product, Price, Place, and Promotion. As of 2026, there are over 33,000 registered property agents in Singapore, and strict adherence to the Estate Agents Act is mandatory to maintain professional standards and protect consumers from misleading property advertisements or unethical sales tactics.

Q: What is the passing score for the RES exam? A: You must achieve a score of 75% (60 out of 80 marks) to pass each paper.

Q: How much is the RES exam registration fee in 2026? A: The fee is S$408.55 (inclusive of GST) for both Paper 1 and Paper 2.

Q: Can I use CPF for a second property? A: Yes, but you must set aside the current Basic Retirement Sum (BRS) before the remaining OA can be used for the second property.

Q: What is the LTV for an HDB loan? A: As of the latest regulations, the HDB concessionary loan LTV is 75%.

For RES exam preparation, candidates should focus on these common queries regarding LTV limits, CPF usage rules, and registration costs, as they form the core of the Paper 2 Marketing, CPF & Finance syllabus.

Memorize these formulas for the Sale of Properties and finance sections:

1. Stamp Duty (BSD): 1% on first $180k, 2% on next $180k, 3% on next $640k, 4% on next $500k, 5% on next $1.5M, and 6% thereafter.
2. Net Proceeds: Selling Price - Outstanding Loan - CPF Refund (Principal + Interest) - Agent Commission - Legal Fees.
3. Rental Yield: (Annual Gross Rent / Purchase Price) x 100.

Understanding these calculations is vital for HDB Properties and private residential transactions. The Prepare app offers practice questions across all 13 RES exam topics, including detailed calculation walkthroughs for BSD and net proceeds. To pass the RES exam, candidates must accurately calculate Buyer’s Stamp Duty (BSD) and net cash proceeds, as these financial metrics are frequently tested in the Paper 2 practical transaction section.