2 Answers

Dear Sir/Mdm,

You are not allowed to pledge a HDB flat even if it is fully paid. If you wish to buy a BTO, you can apply for a BTO first and sell your current flat until when the BTO is completed. In this way, you can make sure of your sales proceed to finance the purchase of the BTO.

Please feel free to contact me so that I can understand your situation and advise you what is the best way forward.

Regards,
Nick Tan
(M) +65 9644 4854 
B.Eng(Chemical)(Hons)(NUS) / Cert-in-REA
(E) nick96444854@gmail.com
SEAA Salespersons Achievement Platinum Award 2020

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0
Hi,

1) You have to make a firm decision over this matter because it will become very complicated after you pledge your current HDB flat to the CPF board.
2) Complication will be excessive if there is a change of policy between your 55 and 65 years old.
3) If you intend to buy a BTO and you need the sales proceeds to pay for the BTO, it will be best not to pledge your HDB flat now.
4) Because you will have to pay back the pledged amount + accrued interest. And if your remaining CPF fund is insufficient to pay for the BTO, you will be at the mercy of the CPF board.
5) Do note that if it is your intention to buy a 2-rm Flexi lease HDB flat after 55. You have to be able to fully pay for the flat. No mortgage is allowed for a 2-rm Flexi lease HDB.
6) You should notify the CPF board when you reach 55 to reserve an amount for your BTO purchase and ask for a proposal from them on how to manage your RA.

Hope the above answer to 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.

Best regards
Ling CK
 90110636 
ling.ck7@gmail.com
https://R056727F.propnex.net/
https://www.facebook.com/Homesellerbuyer

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  • SM
    I did pledge my flat before 55yrs. And I did apply new bto 2rm flexi. And I did ask cpf how it works. Cpf will refund my pledge + interest. My Bra is 176k, pledge amount 88k but my RA is already reach 110k so cpf will put back the balance of 66k out of 88k and the rest will put into my oa or cash so to pay my new flat. That is what I know.

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