9 Answers

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

If you are looking to buy a second property, your Loan-To-Value (LTV) limits will be reduced to 45% with a minimum cash downpayment of 25% if the loan tenure does not exceed 30 years and age 65-years-old. If it exceeds 65-years-old, your LTV will be further reduced to 25% with a minimum cash downpayment of 25%.

You will also need to pay a Buyer's Stamp Duty and Additional Buyer's Stamp Duty of 12% for your second property. Based on your information, buying a second property is not feasible. If you decide to sell your 5-room flat, this may free up some funds for you to purchase a condominium.

Based on HDB's fourth quarter of 2019 resale transaction for a 5-room flat in Serangoon, the median price recorded was $548,000. Assuming you are able to sell at this price and then proceed to buy a 3 bedroom condominium within 10 minutes drive to Toa Payoh, our listings on PropertyGuru shows that the minimum asking price is $1.35 million. When purchasing a private property, you will be subjected to the Total Debt Service Ratio (TDSR), Valuation Limit and Withdrawal Limit. Your TDSR should be less than or equal to 60%. The TDSR formula is as follows:

(Borrower's total monthly debt obligations / Borrower's gross monthly income) x 100%

Assuming you have a total mostly debt of $1,000, this is your TDSR:

$1,000/$10,000 x 100% = 10%

You will be subjected to Valuation Limit. Valuation Limit is the lower of the purchase price or valuation at the time of purchase. Assuming the valuation and purchase price is $1.35 million, your Valuation Limit is $1.35 million.

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

120% x $1,350,000 = $1,620,000

$1,620,000 is your Withdrawal Limit.

You will also need to set aside a Basic Retirement Sum of $90,500.

Assuming you can get 75% loan ($1,012,500) over 30 years, you will need to place a downpayment of 5% in cash ($67,500) and 20% in cash and/or CPF ($270,000). Your monthly mortgage will work out to $3,742 which is still within your TDSR. You can use our mortgage calculator here: https://www.propertyguru.com.sg/mortgage/calculators/mortgage-repayment

With a Withdrawal Limit of $1,620,000, you will hit the limit in 24 Years 1 month. If you are unable to meet your Basic Retirement Sum of $90,500, you will need to pay your mortgage in cash. You can use CPF's Housing Limit Calculator here: https://www.cpf.gov.sg/eSvc/Web/Schemes/CpfHousingWithdrawalLimits/CpfHousingWithdrawalLimitsResults

You will also need to calculate your Buyer's Stamp Duty (BSD): $38,600

Don't forget that once you have sold your HDB flat, your CPF used with accrued interest will be refunded to your CPF account. Hence, you will need to do a detailed financial calculation. You are advised to engage a good agent who will be able to the math for you.

Hope this answers your question.

Best Regards,

Team PropertyGuru Read More


Ivan Ng

Happy to do up the financial calculations for you to ascertain the feasibility of the upgrade. Just wondering if you have done a redemption of the current home loan for the hdb?

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
ERA Senior Marketing Director
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I would like to compliment Mr Ivan Ng for his professional work and effort.I sent my first post in Jan 2019 and Ivan replied promptly, so I have decided to contact Ivan for follow up. My EC was not ready for sale due to MOP (another 3 months from Jan) at that time and Ivan was able to give me advices on how to proceed from there. Initially we have decided to try to write to HDB for early sale but since it was only 3 months left, eventually we waited for another 3 months while we looked for our next property. Ivan was able to arrange for new property showroom appointment at a timely manner while helping us to list for our EC for sale. We were a bit worried when our EC sale time was longer than expected due to trade war, but Ivan was able to reassure us that our EC would sell. By November, he managed to secure a buyer for our EC. Thank you.

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-- HDB Jurong West 5-RM Sellers, Exec Apartment Purchasers, Lenz & Michelle --

We would like to thank you for ensuring a smooth and well-explained process throughout the whole selling and buying of our property. We got to know you thru Property Guru, where we are scouting for condo around West area. We remember that we are quite tight in our budget in purchasing the condo unit,but you are still very willingly explaining and calculating our financial liabilities. You are always having your smiles whenever we met for discussion.

We appreciated your process of selling and buying of our property are very systematically and well executed, from financial calculation to the purchase procedure of our new house. We are always being updated thru our group chat during the engagement of your service.

We would never expect such a smooth sailing experience of selling and buying of property. Your professionalism in work will definitely be remembered and rewarded. All the best in your property venture! Read More


Aaron Chong
Hi, I would be most glad to assist you further and pls feel free to let me know if you need any assistance. Hope to hear from you soon and have a great week ahead.

Aaron Chong
9730 8455
aaronchong2774@yahoo.com.sg Read More


Mark Ng S W
Hi Do contact me at 97970200 to discuss more on your options and go through the financial calculation with you

Mark, your RIGHT choice
Propnex Read More


Alan Sng

Having a home should be where you can rest and relax and a place where you can come back to after a long day at work thus we must ensure to have a prudent financial planning so that it will be within your comfort zone.

I am sure there are many options that will be suitable for you thus i will need to know what is your plan before i can advise further.

May i seek your help to contact me at 92707548 to discuss further.


Alan Sng
PropNex Read More


Robbie Chen Chee Howe

Are you looking to upgrade by selling off your 5RM HDB flat and purchasing a condo? Or are you looking to purchase a second property while keeping your HDB flat?

If you're planning to hold onto your HDB flat, and purchase a second property, do take note that you will be liable for a 12% ABSD for Singaporean's second property purchase. Your LTV ratio will also only be at 45% if your HDB flat is still under loan.

If you're looking to sell off your HDB flat, then I would like to believe that there are more options for you to consider.

Let's have a more in-depth discussion, so that I can give you a more appropriate recommendation for you and your family.

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


Silvia Yang
Hi Sir/Madam

I will need more information to be able to advise you

I won't be able to contact you first as I do not have your contact, appreciate if you can contact me at (65) 96608508 or Silviayang8@gmail.com with details of your unit
or click here https://bit.ly/WaSilvia to whatsapp me for no obligation discussion
Thank you.

Warmest regards,

Silvia Yang

Senior Marketing Director
ERA Realty Network Pte Ltd
Mobile: (65) 9660 8508
Email: Silviayang8@gmail.com Read More


Geryl Lim
Dear sir/mdm,

As you have mentioned that your cash on hand is limited, it is likely that your funds for the next intended purchase is going to come from the sale of your existing HDB that will MOP in April 2021.

Whether it is feasible or not, we will only be able to project the finances if we know more about your current place, as well as the outstanding loan on top of CPF monies used for the current property. In addition, we will also need to know the age of borrowers for the intended purchase in order to estimate the loan eligibility. Doing up the above will then allow you to understand how feasible the plan of the asset progression can proceed.

Warmest regards,
Geryl Lim
Associate Deputy Group Director
Salesperson Registration No. R014783H
Email: geryl.lim@orangetee.com / geryl7772@gmail.com
OrangeTee & Tie Pte Ltd 430 Lorong 6 Toa Payoh #01-01 OrangeTee Building Singapore 319402
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Taufik Hussein

I am assuming you are looking to sell your current flat after MOP and then upgarding to a private property. I can assist on the calculations and feasibility of your plans. Do contact me at 93375051 for a free and non obligatory discussions on this.

Taufik Hussein
ERA Realty Network Pte Ltd Read More