4 Answers

askguru expert
Hi Anonymous, thanks for writing to us on AskGuru.

1. There is no resale levy when buying a resale HDB flat. We regret to inform you will not be eligible for any CPF Grants and an HDB loan if you were to sell the current flat and upgrade to either a 5 room resale HDB flat or EA flat and include your parents' names as owners. You will instead need to take a bank loan where you will be subjected to the Valuation Limit and Withdrawal Limit.

2. For option 2, you will be subjected to the Valuation Limit and Withdrawal Limit when taking a bank loan. The formula to calculate your Valuation Limit is as follows:

Let us assume the following:
Remaining Lease : 50 years
Youngest Buyer Age : 35 years old
HDB Flat Price : $400,000

Remaining Lease of Property – 20 / 95 - Age of Youngest Buyer Using CPF - 20

50 - 20 / 95 - 35 -20 = 30/40

Valuation Limit = 0.75

CPF Usage = 75% x $400,000 = $300,000

For a bank loan, you will be subjected to Withdrawal Limit: 120% of the Valuation Limit.

120% x $300,000 = $360,000

$360,000 is your Withdrawal Limit.

Assuming a Loan-to-Value Limit of 75% ($300,000), your downpayment will be as follows:

25% (5% cash + 20% cash and/or CPF) = ($20,000 cash + $80,000 cash and/or CPF)

With a bank loan and a downpayment of $100,000 with a loan of $300,000 over a period of 30 years with an interest rate of 2%, your mortgage works out to $1,109.

You can use our mortgage calculator here: https://www.propertyguru.com.sg/mortgage/calculators/mortgage-repayment

With a Valuation Limit of $300,000, you will hit the limit in 22.5 years ($300,000/$1,109)/12 months. If you are unable to meet your Basic Retirement Sum (BRS) of $90,500, you will need to pay your mortgage in cash.

If your parents are aged 55 and above, they cannot apply to withdraw CPF Savings above the BRS except the first $5,000. They will need to set aside a BRS of $90,500 respectively.

3. We also regret to inform you that your parents cannot be joint owners under the Single Singapore Citizen Scheme. They can live with you if they decide to rent out their flat. However, a 2-room flat will be too small to accommodate three persons. You are advised to discuss with your parents the best option forward to either let you buy a BTO flat on your own or to sell their current flat and then buy a resale HDB flat using a bank loan subject to the Valuation Limit and Withdrawal Limit. Do note, if your parents had used their CPF, their CPF with accrued interest will be refunded to their CPF account. This reduces the sales proceeds from the sale of your parents' flat.

Hope this answers your question.

Best Regards,

Team PropertyGuru Read More


Ivan Ng

Buying resale flat from open market, no resale levy is involved. You can consider to add in their name as occupiers after selling the current flat, and it is likely the first timer grants for you will still be available.

Whether to be able to get higher loan, I will need more details from you.

Purchase BTO flat, resale levy will apply. And it is difficult to get an unit since balloting is by luck and favours first timer applications.

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

Warm Regards,

Ivan Ng Realtor
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Robbie Chen Chee Howe
Hi Sir,

If you're looking to purchase a resale flat, there is no resale levy applicable.

If you're looking to apply for a new BTO flat, you can only apply for a 2-room flexi flat in a non-matured estate. Your parents will not be able to jointly apply with you as they had already utilized both their chances. Even if you appealed and HDB allows them to jointly apply with you together under Public Scheme, it is likely that they will need to pay resale levy for the sale of their current flat.

Based on your described scenario, I think option 1 would be the most feasible option for you and your family.

However, do take note that if your parents are past age 55, they will have to set aside the Retirement Sum after the sale of their current flat. This may affect their next purchase and your budget.

I am experienced and well-versed in both HDB and private transactions. I will be able to assist you in your property plans.

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
9748 6305
PropNex Realty Read More


Taufik Hussein
Hi sir
I fully understand your situation on this. To clear the air, there is not resale levy required to purchase a resale flat. As for grant wise, it may be true that you might not be eligible for singles grant if you include your parent's name as owner of the new resale flat. As an alternative, you can choose to include your parents name as an occupier. However, do note for EHG(singles) grant, household incomes from all owners and occupiers need to be included in the assessment. This might result in a lower quantum received if any of your parents is still working. Beside single grant, you are also eligible for PHG grant of $15k if your parents is named only as occupier for the new resale flat. Alternatively, you may include your parents name as owners and forgo the grant. In this case, if your parents have taken more than 2 HDB loans previously, you are not eligible for HDB loan and have to take up a bank loan. If your parents only take up 1 HDB loan previously, it will be quite a complex situation which I can explain if we got a chance to meet up. Do note that in the event you did not take up singles grant but include your parents name as owners, you will not forfeit on the grant. You are still eligible to take singles grant or first timer grant should you get married and purchased another house in future or purchase another house in the future as a singles. For the second option of buying a BTO, do note if you take up a bigger unit and and list your parents an an occupier, your parents will be deemed as an essensial occupier not just normal occupier. In this case resale levy might apply. As for higher loans, it is quite unlikely that HDB and banks could grant you as they must adhere to MAS regulations of TDSR limit. As such, I do advise you to consider each options carefully before making a decision. I do provide free and non obligatory discussions in regards to property trnasactions in Singapore. In addition, I am well au fait with the timeline procedures for HDB resale invoving cashflows and transition arrangements where I can plan the timeline accordingly depending on your needs. Do contact me at 93375051 for a free and non obligatory discussions on this.

Taufik Hussein
ERA Realty Network Pte Ltd Read More