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Hi,

Yes you are correct. Doing contra with 2nd hdb loan means what you mentioned will apply. And yes stamp duty and legal fees have to be paid by your CPF OA first if sufficient, if not it has to be by cash.

Doing contra means both sale & purchase transactions will be linked together and completed on the same day. Benefits of contra will be to have a seamless transition where the CPF refund is automatically ported over to the next place, hence part of it will go to your downpayment. Your current flat and next flat purchase must both be under HDB loan and hdb conveyancing.

I have worked on various contra resale hdb transactions and would be happy to share the best approach for your scenario. 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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After a week of preparation, Ivan came to take photographs, and once the advertisements were up, we had interested parties coming to view the apartment the very next day. Within a week, we had secured an offer from the buyer. Ivan was reliable and responsive, and he made the entire process smooth and hassle free Read More

Dear Sir/Mdm,

Yes you are correct. If you are doing a contra, you will only be able to get back 50% of your sales proceeds. The other 50% will be used towards the funding of your next flat together with your CPF refund. Both the refunded CPF and the CPF in your OA can be used towards the down payment.

HDB will grant you the shortfall as loan. Kindly take note that for contra, the sale and purchase will need to be done concurrently as the 2 transactions are required to be submitted together and there can only be 1 contra party in the transaction.

I have done many contra cases before and will recommend that you plan out your timeline and finances first before proceeding. In this way, you can also determine whether contra is the best option going forward.

Please feel free to contact me so that I can understand your situation better and draw up a transition plan for you.

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

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

Hi,

Yes, your understanding of the Enhanced Contra Facility is on point.

Do take note that for contra cases, both your Sale and Purchase completion will be on the same day, and HDB will calculate and arrange for the setoff of CPF and Cash from your old flat to your new flat.

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

Hi,

1) Taking 2nd HDB loan, you have to aware of the following:
The second HDB concessionary interest rate loan is granted subject to the following conditions:
(i) up to 50% of the "cash" proceeds from the sale/disposal of the buyer's and/or his spouse's/fiancé's/fiancée's last owned flat will be taken into account in determining the loan to be granted; and

E.g. Sales - Outstanding loan - (CPF + accrued interest) = cash proceed. It is the cash that is deducted off to pay for the next purchase, not the overall sales price.

(ii) full utilization of CPF (subject to the retention amount: Max up to $20k) will be required at the point of loan disbursement.
CPF fund will be fully utilized after deducting legal fee, buyer stamp duty to pay for the next purchase.

2) The above has nothing to do with contra. The advantage of contra is you don't have to wait up to 10~15 working days for your CPF fund to return to your OA.

3) Disadvantage of contra is you have to submit both buy and sell on the same day, at least within 3 working days in order for the same HDB officer to pick up your case to work as one.

4) You will have to advise the CRM (Customer Relation Manager; HDB officer) on the downpayment, buyer stamp duty, legal fee to be pay using your OA. CRM will take both current OA funds + CPF returned from sales into account to make all payments.
As per current policy, you are allowed up to $20k to be retained in your OA.

Hope the above answer to your main concerns, but if there are more query, please feel free to contact me at 90110636  , or email: ling.ck7@gmail.com if more information is needed.
I'll be glad to assist.

Best regards
Ling CK
 90110636 
ling.ck7@gmail.com
https://R056727F.propnex.net/
https://www.facebook.com/Homesellerbuyer

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