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Hi, i'm helping my uncle (54 years old)and aunt (45) with their purchase of HDB BTO flat in Punggol as 2nd-timers, because my uncle has inherited the first flat (fully paid)from my grandparents. Grateful if the gurus here could assist with my questions below:

1) Is the min sum scheme relevant here since they will definitely have to sell off first flat upon taking possession of 2nd flat?

2) Other than $2000 booking, any costs that cannot be paid for by CPF, which i supposed can be used to pay for 1st installment?

3) Can they take concessionary loan from HDB and for how long?

4) Can they use proceeds from sale of 1st flat in future to offset/reduce loan taken on purchase of 2nd flat? Any restriction on distribution of proceeds?

5) Any other things to look out for?

Thanks everyone!

SK
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1 Answer

Mike Lim
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Evening SK,

1) CPF minimum sum is only applicable for those who have attain retirement age or using CPF to pay for both mortgages.
2) Beside the $2k that have being paid, if they have sufficient CPF, provided that your uncle gets the key before reaching retirement age, he can uses his CPF to pay for the remaining.
3) As the unit have being inherited, I would assume that your grandparents have purchased this unit directly from HDB. With such case at hand, HDB would deem that your uncle have enjoyed an subsidized unit. If they themselves have purchased another direct unit, that would eliminate their chance of getting another subsidized loan. If they are eligible for subsidized loan, they can loan till age of 65.
4) Every HDB owner can only own one HDB unit at a time. Therefore they must sell away the inherited unit within 6 month from key collection. As for the proceed, it would purely be in cash.
5) Main thing to look out for will be your uncle's financial holding as I believe that he will problem using his CPF monies by the time he hit 55 year old. Do also check on how many subsidized unit have they enjoyed, inclusive of the inherited unit.

Regards
Mike Lim
 96929209 
CEA Reg No: R026708F
Email add: m52i@yahoo.com
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  • SF
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    Thanks Mike for the reply.

    When you say reach retirement age, do you mean 55 or 62? Understand the CPF goes into 'retirement account' upon reaching 55. This is my uncle first purchase from HDB direct, since his 1st flat was inheritance direct, without using his CPF to pay for it.

    This is where it gets a little iffy. Since they would only dispose of 1st flat after taking possession of 2nd, would they be affected by MMS? - Technically, he has only one flat then, the 2nd one, which may not be fully paid up, now that CPF is in 'retirement account', does it mean it is freezed and cannot be used to pay for his one and only HDB flat without leaving Min Sum. I supposed my auntie should be able to use her CPF since she is younger.

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