8 Answers

Alfred Tan
Dear Sir/ Mdm,

I would advise you to apply for HDB Loan Eligibility(HLE), you will then find out how much you need to return in cash from your sales proceeds from the first sale.

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I have written a “5-Steps Guide on How To Achieve The Best Possible Price In The Shortest Possible Time For Your Unit”.
You may like to contact me at 8388-8821 for a free non-obligatory 15mins phone consultation.

Best regards,
Alfred Tan
ERA Realtor
mobile/ whatsapp: +65 8388-8821

salesperson Registration No. R061626I
ERA Realty Network Pte Ltd. (CEA Licence No. L3002382K) Read More

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Alfred Tan
For a second HDB concessionary housing loan, your loan quantum will be right-sized by utilising the CPF monies refunded and up to 50% of the cash proceeds from the disposal of the existing or previously owned HDB flat. This facilitates financial prudence and prevents over-borrowing.

The manner of disposal of a flat includes the sale, transfer or surrender of a flat, or by any other method under the Housing and Development Act or any other written law.

HDB reserves the right to determine the amount of proceeds to be used, either by taking into account the manner of holding of the existing/ previously owned HDB flat, or according to any court order that provides for the disposal/ division of the flat.

Generally, flat buyers can keep the greater of $25,000 or 50% of the cash proceeds (including the cash deposit received), and HDB will take into account the remaining part of the cash proceeds when determining the quantum of the second HDB concessionary housing loan.

If you buy an HDB flat after disposing of the existing one

You and the essential occupier will have to use up to 50% of the cash proceeds from the disposal of the existing HDB flat. You may retain up to $20,000 in your CPF Ordinary Account and use the rest of the available CPF Ordinary Account balance to buy the next flat.

If you buy an HDB flat before disposing of the existing one

You will be charged commercial interest rate (pegged to the average non-promotional interest rate for HDB flats offered by the 3 local banks) for the housing loan to buy the next flat.

The interest rate will be converted to concessionary rate when you have disposed of the existing flat, and have used the CPF monies refunded and up to 50% of the cash proceeds from the disposal to repay the housing loan for the next flat purchase. From the CPF monies refunded, you may retain up to $20,000 in your CPF Ordinary Account.

~~
I have written a “5-Steps Guide on How To Achieve The Best Possible Price In The Shortest Possible Time For Your Unit”.
You may like to contact me at 8388-8821 for a free non-obligatory 15mins phone consultation.

Best regards,
Alfred Tan
ERA Realtor
mobile/ whatsapp: +65 8388-8821

salesperson Registration No. R061626I
ERA Realty Network Pte Ltd. (CEA Licence No. L3002382K) Read More

0

Nick Tan
Dear Sir/Mdm,

If you are using a HDB to fund the purchase of your next flat, 50% of the sales proceeds from your current flat will need to be reinvested into your new flat before HDB can grant you the loan. This is a requirement under the right-sizing when taking a HDB loan.

Please feel free to contact me so that I can run thru the figures with you and show you a comparsion between taking a HDB loan or a Bank loan so that you will have a better idea before deciding.

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

Visit my website to get to know me better:
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I write to commend Nick Tan (R040814C). When my husband and I first met Nick, we were impressed by his drive, commitment, business acumen and strategical thinking, and decided to engage him. We were not disappointed. Nick sourced for prospective quality buyers in a targeted methodical fashion and was effective in connecting us with serious buyers, notwithstanding the fact that the search primarily took place over Dec – Feb (a traditional lull period). Throughout the transaction, he also gave us helpful advice in various aspects; the advice reflected his personal experience and expertise and was not simply regurgitated from public sources without any value-add. Further, Nick went beyond the call of duty of a competent professional. He had a sense of humanity in the way he interacted with myself and the other parties to the transaction such as my parents. As an example, my newborn daughter was warded into A&E on the completion date of the transaction; the care and concern that Nick showed went beyond the scope of work of an estate agent. I commend Nick for his capabilities and character, and would certainly wish to engage him for future property transactions.
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“We are very grateful to Nick for his extensive marketing efforts. With his comprehensive marketing plan, he helped us to achieve a record selling price within 2 weeks of listing our property for sale! We highly recommend his service to anyone who is keen to sell their properties.”
Mr & Mrs Wong (Property Seller)

“Nick has conducted himself ethically and professionally when handling the sales of our property. Thanks to his patience and perseverance, we managed to secure a sales price beyond our expectations. We are very happy and satisfied with his services and will definitely recommend him to our friends and family in the future.”
Mr & Mrs Tan (Seller of Inter-Terrace House)

“Nick provides a delightful customer experience from day one when I engage him as my agent to look for a flat of my choice to the completion of the deal. He is competent, resourceful and has a pleasant manner to work with. He is the Agent of my choice in dealing with properties and I would highly recommend him to others who would appreciate an agent that takes care and can give the customer a peaceful mind.”
Susana (Buyer) Read More

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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. By the way, yes you are right to say that 50% of the sales proceeds will be deducted from it before you start the 2nd HDB loan. That is why some will choose to go for bank loan for their 2nd HDB flat purchase.

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

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Taufik Hussein
Hi
For 2nd HDB concessionary loan, you are only allowed to keep the higher of 50% of $25,0000 of your sales proceed while the rest of it has to be place back as a downpayment for your new flat. (Loan amount for your new flat will be reduced). As an example if your sales proceed is $30,0000, 50% of $30,000 is $15,000. Since $25,0000 is higher than $15,000, you are allowed to keep $25,000 and the balance of $5,000 to be placed as a downpayment for your new flat. But if your sales proceed is $100,000, 50% is $50,000. Since $50,000 is more than $25,000, you are only allowed to keep $50,000 from cash proceed while another $50,000 to be used as a downpayment for your new flat. Bank Loan does not have such restrictions but require standardize 5% downpayment paid in cash to finance your new flat. On whether is it better to take up a 2nd HDB loan or a bank loan, it depends on each individual profile. Do contact me at 93375051 for a free and non obligatory discussion on your future housing plans.

Regards
Taufik Hussein
ERA REalty Network Pte Ltd Read More

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Taufik Hussein
Hi
Just to add on as I think I have misread your question. The 50% cash proceed rule only applies to your existing HDB flat. It does not matter if you finance it using HDB loan or bank loan. Your 1st purchase of HDB flats years ago does not matter and come into the picture.
Regards
Taufik Hussein
ERA Realty Network Pte Ltd
93375051 Read More

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Andik Imran
Dear Sir/Mdm,
I am glad to be of service.
Generally, flat buyers can keep the greater of $25,000 or 50% of the cash proceeds (including the cash deposit received), and HDB will take into account the remaining part of the cash proceeds when determining the quantum of the second HDB concessionary housing loan.
When you apply for the HDB Loan Eligibility, you will then find out how much you need to return in cash from your sales proceeds from the first sale.

With regards,
Andik Imran
(M) 94508732
(W) realestatedad.sg Read More

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Ivan Ng
Hi,

For 2nd hdb loan, I believe you are aware, hdb requires 50% of the sales proceeds to be set aside for the upcoming purchase for the 2nd hdb loan applied. To confirm the amount, you may want to apply for the HDB HLE to find out the exact amount that needs to be set aside. It will be stated clearly the amount.

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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