Yes, you have the option to choose how much to downpay and keep some of the cash proceeds when buying a resale flat, even if you've sold your existing executive flat. Here's a breakdown of your options and considerations:
**Sale Proceeds and Downpayment:**
* **Estimated Sale Proceeds:** Your estimated sale proceeds would be around S$420,000 (S$600,000 selling price - S$180,000 outstanding loan).
* **Minimum Downpayment:** For a resale flat, the minimum downpayment is 5% of the purchase price if you take an HDB loan, or 25% if you take a bank loan.
* **Cash Proceeds:** You can use your cash proceeds to make a larger downpayment than the minimum required. This will reduce your loan amount and monthly installments. However, remember to keep enough cash for renovation, moving costs, and other expenses.
**Resale Levy:**
* **Applicability:** Resale levy is applicable if you're buying a second subsidized flat and your household income exceeds the income ceiling.
* **Calculation:** The amount of resale levy depends on your income, flat type, and the valuation of both your sold and new flats.
* **Checking Eligibility:** You can use HDB's resale levy calculator to check if you are liable for the levy and estimate the amount.
**Bank Loan vs. HDB Loan:**
* **Bank Loan (25% Downpayment):**
* **Pros:** Potentially lower interest rates compared to HDB loan.
* **Cons:** Stricter eligibility criteria, requires a higher downpayment.
* **HDB Loan (5% Downpayment):**
* **Pros:** Lower downpayment requirement, more lenient eligibility criteria.
* **Cons:** Interest rates are generally higher than bank loans.
**Making a Decision:**
To decide whether to take a bank loan or HDB loan, consider the following:
* **Your financial situation:** Assess your affordability and how much downpayment you can comfortably afford.
* **Interest rate environment:** Compare the current interest rates offered by banks and HDB.
* **Your risk appetite:** Bank loan interest rates might fluctuate, while HDB loan rates are more stable.
**Additional Considerations:**
* **Cash Over Valuation (COV):** If the agreed-upon price for your resale flat is higher than its valuation, the difference (COV) must be paid in cash upfront.
* **Eligibility for Grants:** Depending on your eligibility, you might qualify for CPF Housing Grants or Proximity Housing Grants, which can further offset your purchase price.
**Recommendation:**
Before making a decision, consult with an HDB officer or a mortgage broker to understand your options better and make an informed choice based on your financial situation and priorities. You can also use HDB's online calculators for a preliminary assessment of affordability and potential grants.
I hope this information helps you in your decision-making process!
WhatsApp me at: ABLE Toh (65) 98 56 92 55 or through this link.:https://wa.me/6598569255
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