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1) I currently paying my HDB flats which reached MOP. I apply for a new BTO again and managed to book a flat. When i sell off existing flats, the selling price can cover my new flat with about 100k plus cash proceed. Therefore, I do not need to take another HDB loan or pay any monthly deduction from my OA account. Do they still take away 50% from my cash proceed?

2) I currently 46 years old and my wife 36 years old. My wife income is $2500. During the downpayment, we need to submit HLE. The HLE will just calculate and access how much we can borrow and how much to pay for future monthly deductions from OA. If it is not enough to cover, they will just ask to pay in cash. Right? It just a formality and wont affect me buying. They wont stop me from purchasing because my loan not enough. End of the day, i would need to sell off existing flat.

3) If worse scenario that i cant sell my flat when its key collection. I heard from friends that i can extend 1 year. Once i sell, they will released the new BTO key to me. is that true?
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6 Answers

Hi
It is unclear from your 1st and 2nd questions on whether you wish to take HDB loan or fully pay your next BTO using your sales proceeds. If you intend to fully pay for the house, there is not even a need to apply for HLE although it may be prudent to do so since we are unsure of the resale price trend in the future. For your 3rd question, yes HDB will allow delay for key collection awaiting for your current flat to be sold although 1 year might be too long.for HDB to consider. Normal delay timeline that is approved by HDB on case by case basis is around 3 months. I am specialised in HDB transactions. Do contact me at 93375051  for a free and non obligatory discussions on this.

Regards
Taufik Hussein
Marketing Director
ERA Realty Network Pte Ltd
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Dear sir/mdm,

Do you mean that you can fully pay off the BTO unit if you sell of your existing HDB? Are you using CPF entirely to finance the BTO in that case?

In worst case scenarios where you are unable to sell off the HDB upon key collection, you will need to appeal to HDB to allow more grace period for sale and show HDB that you have put in significant efforts to market the place for sale.

I have been in the real estate business since 2009, with more than 13 years of experience serving the Singapore real estate market.

I am very active in the residential segment of Singapore real estate market, having transacted hundreds of deals from HDBs to private condominiums and landed properties in Singapore, and have handled many unique cases in sales and purchases as well as rental deals.

Over the years, I have also established a network reaching out to more than 9,400 expatriates, bringing my market presence to both in and outside of Singapore. This has created an additional exposure when I manage my client's portfolios, on top of the conventional on and offline platforms, where other estate agents are relying on. This has allowed me to consistently convert leads into results.

With an evolving market, where change is the only constant, I have also been investing in upgrading of my knowledge and skills sets to improve myself and meet the demands of current and future market.

We are offering our clients a complimentary first consultation without obligations (Absolutely FREE!). Schedule for your FREE session today!

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  • Geryl Lim
    nope, in this case if you are not taking any HDB loan for the purchased property, you need not set aside 50% of your cash proceeds for the purchase. As a general consideration, I will always like to highlight to clients to reduce the usage of CPF funds for their HDB purchase wherever possible due to the accrued interest that can be earned if the funds are left in the CPF account for retirement usage given that you will need to return this amount of accrued interest using your cash amount when you decide to sell in future. It is like paying interest using your own cash instead of earning the interest from the government.
  • j***@yahoo.com.sg
    Yes. After selling, I can used the amount return to cpf to fully pay my next bto flat. Example, sell 800k. But 450k. Still need 50% sales proceed into buying 450k?
Hi,

If you do not require a 2nd HDB loan, then you need not set aside 50% of the sale proceeds, since as you mentioned, the sale price more than covers the purchase price of the BTO.

During the booking of unit (or Agreement of Lease stage), they will require you to come up with 10% downpayment + another 3% stamp duty, so to be able to book an unit. Yes in a way, the HLE at this stage is just a formality and should you choose to take up another HDB loan when key collection nears, they will re-assess your HLE application again a few years down the road.

If you need the sale proceeds to complete the purchase, you will be required to sell off the existing HDB first before HDB allows you to collect the keys to the BTO. Alternatively, there is also this Temporary Loan option. As for the sale, this so called "extension of time" to sell is not a given, but typically its not difficult to sell off when you work with an agent who has a comprehensive marketing plan within a reasonable price range.

I have worked with various clients who are in a similar situation. Look forward to work together when the time nears for your BTO keys to be ready.

Hope the above clarifies. May I have more info and requirements about your plans so as to make better recommendations? Thanks and look forward to value-add to your housing plans.

Warm Regards,

Ivan Ng Realtor
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Hi Sir/Mdm,

Let me try to provide you with some clarifications:

1. If you are not taking any HDB loan, you will not be subjected to the right sizing policy and therefore you will be able to keep 100% of your sale proceeds. However, you will need to check whether resale levy is applicable.

2. Yes your understanding is correct. If the HLE is not sufficient to cover 80% of the purchase price, you can choose to top up in cash and you can still proceed with the purchase.

3. We can plan the sale of the flat close to the key collection date so that you can transit smoothly from one flat to another. We can ask for extension if we cant sell the flat in time but based on my experience, none of my clients are required to ask for extension as long as we plan the process properly.

Please feel free to contact me if you need further clarifications.

Regards,
Nick Tan
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Hi,

1) I would assume you took an HDB loan for the current flat. You said you are currently paying, this means that you have an outstanding loan.
(a) Your selling price will need to deduct the outstanding loan first followed by the amount utilized in your CPF + accrued interest to determine whether there is any cash proceed.
(b) If you are not taking a 2nd HDB loan, the HDB will not deduct any cash proceed from your sale.
(c) You are reminded you are also subject to a buyer stamp duty (BSD), legal fee, and resale levy for the BTO. If your BTO cost $400k, the BSD shall be $6.6k, the legal fees are around $1.2k, and the resale levy is $40k for a 4-rm flat (this is referring to your current flat type).
(d) You must have the money ready for the balance payment before key collection.
(e) Do note that it is very difficult to estimate the exact date for the key collection due to the current pandemic situation. There are a lot of delays in many BTOs.

2) You have to prepare a 10% downpayment for no loan or taking a loan from the HDB. You will have to inform the HDB officer during the signing of the lease agreement.
(a) You may utilize your CPF if there are sufficient funds otherwise will need to pay in cash.
(b) You also need to prepare for the payment of stamp duty and legal fees at this point of time.
(c) There will be a difference of a few hundred dollars on whether you are taking a loan or not. There is a mortgage stamp duty of $500 if taking a loan, and the legal fees will also vary accordingly. So you must be clear about the situation.
(d) You are right that the HLE will only be deduced using your current income. And the HDB will expect you to top up the difference in cash.
(e) You may also apply for a temporary loan from the HDB even if you are not taking any loan from the HDB. You can then redeem the temporary loan by using the net proceeds from the sale of your existing flat.
You have to put up the request during the submission of the resale application.

3) Yes, you may apply for an extension to collect your key since you will need the sale proceeds to pay the balance. The HDB will release the key to you once you paid up the balance.
But you will have to check with the HDB the due date for your key collection. Do not just listen to hearsay.

Please give me a thumbs-up if the answer provided is relevant to your main concern. Thanks!!!

Hope the above answer your main concerns, but if there are more query, please feel free to contact me at 90110636  , or email: ling.ck7@gmail.com if more information is needed.
I'll be glad to assist.

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Robbie Chen Chee Howe
Hi Sir,

If you're taking up a second concessionary HDB loan, you will be required to "right-size" your loan. This means that you will have to set aside 50% Cash sale proceeds from your current flat, and wipe out all your CPF-OA less $20k.

If you need the sale proceeds from your current flat for your next flat, you will need to plan the Timeline properly.

I am experienced and well-versed in both HDB and private transactions. I will be able to assist you in your property plans. Please get in touch with me for a more in-depth discussion.

Should you need require further assistance in matters relating to property, please contact me at my mobile 9748 6305  . I will be happy to assess and share with you the possibilities for you in the current market.

Thank you.

Best regards,
Robbie Chen
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