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Dear Guru, I intend to sell my current HDB flat and buy a resale HDB flat. My current flat is under HDB mortgage and I have calculated that there is cash proceeds of around$100k.

I have applied for my HLE with HDB and have gotten approval for my 2nd HDB mortgage loan.

I understand that there is a need to use 50% of the cash proceeds to offset the financing of the 2nd HDB I am buying.

My question is can I use the 50% cash proceed to pay for the 10% initial cash payment for my HDB purchase? Or do I need to use the 50%cash proceed to offset the mortgage that I have applied?
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4 Answers

Ivan Ng
Replied
Hi,

In this case, you can consider taking up the enhanced contra facility, which allows a smooth transition between the two transactions. Your CPF OA will be cleared out fully, and the 50% proceeds utilized, and the balance will be HDB loan.

It is advisable to engage an agent to manage the timelines and process, as contra is a bit more complicated and involves more coordination between buyers and sellers. Thanks and may I understand your housing plans further so as to value-add further to your housing plans? Hope to have the opportunity to work with you.

Warm Regards,
Ivan Ng
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Geryl Lim
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Hi Mike,

As what Ivan has mentioned, apart from the Option Fees which you need to cough up front for your purchase, the enhance contra facility you will be undertaking will take care of the rest while your CPF available will be cleared.

Do take note that you should be the only party in the sales and purchase transaction to be using the enhance contra facility.

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Angela Chua 蔡斯淇
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Hi Mike,

In your case, you will be applying for contra, like what my colleague Ivan has mentioned.

You need not pay any cash upfront other than the 5k deposit which you will get from the buyer of your unit.

Feel free to contact me if you have further queries.

Thank you.

Angela Chua
Propnex Realty Pte Ltd
H/P: 9323 3330  Read More
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Tricia Tan
Replied
Hi Mike
Are you looking at contra in this case?
I would love to go through the details with you to ensure a hassle free transaction.
I can be reached via 91442664  if I can help.
Look forward to hear from you.
Tricia Tan
 91442664  Read More
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