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Good day,

If your MOP of 5 years is fulfilled, yes you can purchase the next resale HDB. For the next resale HDB, as you will not be eligible for any other CPF housing grants again, so you will not be subjected to resale levy.

If you plan to get max loan for the next HDB flat, it is better to opt for bank loan. Due to 2nd HDB loan regulations, you will have to fully utilize all CPF OA as well as set aside 50% of your sale cash proceeds to right-size your 2nd HDB loan. This is because HDB wants the home owner to be more prudent when taking the 2nd HDB loan (so a lower HDB loan amount). So its not like a straightforward case where you can take max LTV for HDB loan. For bank loan, it is still possible to take up to max 75% home loan (subject to bank approval).

Ideally both sale & purchase should be done concurrently so to ensure a smooth transition. You should also opt for bank loan if your goal is to get maximum loan and to have more sale cash proceeds on hand.

I have helped various homeowners to successfully transit to their property and compare both pros & cons of HDB & bank loan. Happy to devise the best approach for your needs.

Hope the above clarifies. May I have more info and requirements about your plans so as 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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Good morning,

You are eligible to purchase a resale HDB on or after your MOP. No resale levy payable for purchase a resale HDB.

Resale HDB is payable ONLY when you decide to buy another BTO or new EC.

Loan comparison:

HDB loan max 80%. 20% downpayment can be fully paid by CPF if not with cash too. Interest rate is still 2.6%.

Bank loan max 75%. 25% downpayment. Minimum 5% cash and balance can be paid by cash/ CPF. Interest rate depends on market, hovering close to 4% now.

If you intend to take up HDB loan for second time, do take note that 50% of your sales proceeds along with all CPF OA funds (you can choose to set aside $20k) will be used to reduce 2nd HDB loan. If you are okay with this arrangement, it could be better to take HDB loan now due to lower interest rate.

Not to worry about the loan to value when you purchase. Unlike buying private property, you will still be eligible for max loan cause you will need to sell off current HDB within 6 months from completion date.

But do you need funds from sale to finance purchase?

Perhaps we can meet to work out your numbers and discuss on your plan further. May I know when will be a good time for you guys?

Hope my sharing helps in aiding in your enquiry. May I know how can I value add further in your property needs?

Best regards,

YT Tan
Property Kaki
You dream. I create. We make it happen!
Association of Chartered Certified Accountants Graduate
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If you have already fulfilled the 5 years minimum occupation period, you will be eligible to purchase a resale HDB, and resale levy is not applicable since you are not taking any other housing grants. In utilising your 2nd HDB loan, you will also be required to set aside 50% of your sales proceeds for the purchase. This requirement is not in place if you decide to take up a bank loan instead for the purchase.

In terms of financing, you will need to ensure that you have the necessary funds to complete the purchase if you intend to buy first, otherwise, in most cases, we will advise based on selling first before completion of purchase to ensure funds are ready for the purchase.

We can plan out the timeline in details so you can make a more informed decision moving forward.

I have been in the real estate business since 2009, with more than 13 years of experience serving the Singapore real estate market.

I am very active in the residential segment of Singapore real estate market, having transacted hundreds of deals from HDBs to private condominiums and landed properties in Singapore, and have handled many unique cases in sales and purchases as well as rental deals.

Over the years, I have also established a network reaching out to more than 9,400 expatriates, bringing my market presence to both in and outside of Singapore. This has created an additional exposure when I manage my client's portfolios, on top of the conventional on and offline platforms, where other estate agents are relying on. This has allowed me to consistently convert leads into results.

With an evolving market, where change is the only constant, I have also been investing in upgrading of my knowledge and skills sets to improve myself and meet the demands of current and future market.

We are offering our clients a complimentary first consultation without obligations (Absolutely FREE!). Schedule for your FREE session today!

Warmest regards,
Geryl Lim
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Hi Sir/Mdm,

There is NO resale levy when you purchase a resale HDB. Resale levy is only applicable when you purchase another new BTO flat. A lot of my clients prefer to take HDB loan (LTV 80%) currently because of the lower interest rate of 2.6% as compared to the bank loan (LTV 75%) rate of about 4%. However, for HDB loan, you will be subjected to the right sizing policy and therefore it is compulsory to channel 50% of your sale proceeds from your current house to the next flat and as a result, the amount of sale proceeds that you are able to get from the sale in the form of cash is lesser.

I will be happy to do up a detailed comparison for you and show you the figures for both cases so that you can have a better understanding before deciding. As for the timeline, it is recommend that you do the sale and purchase concurrently so that you are able to minimise your cash outlay and is able to transit from your current place to the next one smoothly without the need for an interim place to stay. With proper planning, you will be able to have a buffer period for renovation as well.

Feel free to contact me so that I can share with you more in greater details!

Regards,
Nick Tan
(M) +65 9644 4854 
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“I would like to recommend Nick Tan from SRI. Before we engaged Nick, we were working with another agent from a very popular property agency in February 2017. We decided to terminate the contract after 5 weeks of zero viewings and no paper advertisements. Basically he was just waiting for phone calls. We engaged Nick on 20th April and by 10th of May, our unit was sold off. Why Nick? 1. He has good marketing strategies 2. He always kept us posted on what he did (communications!) 3. He made sure we understand the current market situation but he will consistently reassure us that the unit can be sold off 4. He is not greedy and trusting 5. He walks the talk”
Peter & Wendy (Property Seller)

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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