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Hi, we bought a HDB Flat (Resale) from the open market 8 years ago. We have completed the MOP period, and this flat is currently under a Bank Loan. Now, we intend to BTO for a new flat under 1st timer application.
I do not intend to wipe out my entire CPF savings, save the SGD 20K, by going to the HDB loan route. Hence, will be looking for bank loan.
a) Am i eligible for bank loan?
b) is there any loan limit due to the previous and property cooling measures?
c) What is the cash payment that we have to make to HDB?
d) can any part of the sales proceed be used to service the 2nd bank loan after we collect the keys for BTO, and thereafter sell our existing unit?

Thanks
K.S
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5 Answers

YT Tan (陈永达)
Good morning K.S,

there is no restriction on how many bank loan can you obtain unlike HDB loan (max twice). If you wish, you can speak to my banker for him or her to advise on your loan assessment before you apply for BTO.

Do bear in mind that recent cooling measures did affected HDB loan but not bank loan. Max bank loan is 75% therefore downpayment will be 25%.

You might want to clarify with HDB on the payments for BTO application.

Also take note that you must be able to take up a loan and make the necessary payments before you can collect keys to your BTO. If you wish to reduce your bank loan after your sale, you can opt to take up a loan package with no lock in if not wait until lock in period is over before making partial repayment.

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
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  • Hi

    Thank you for willing to assist,

    Am I considered as a 2nd property buyer the moment I BTO, since I am living under a flat bought in open market (and service under bank loan)?
    If that is so, then wont the 2nd property ABSD will apply, CPF Basic Retirement Sum (SGD 96K) will be locked?
    I also understand the LTV will be 45%, and hence, my cash outlay /Cpf outlay will need to be 55%?
    Thanks
  • Hi

    Thank you for your reply.
    My understanding is that my future BTO flat would be considered as a 2nd property since I am living and mortgage under an existing bank loan.
    If it is so, isn't that my LTV for 2nd bank loan to be 45%?

    I am also using CPF to service my 1st bank loan currently. Can I still use CPF to pay for my 2nd bank loan? or do I still need to set aside a CPF Basic Retirement Sum (SGD 96000) before I can use it?


    Thanks
Hi,

Yes it is likely you will be eligible for bank loan. The recent cooling measures have not affected the LTV of bank loan, it is still at max 75% for first home loan and MSR of 30% still applies for HDB purchase via bank loan. Only the hdb loan LTV was affected.

Cash component outlay is minimum 5% of the purchase price. Yes its possible to use the sale proceeds from the current flat to pay off part of the purchase price of the BTO when the keys are here.

Hope my inputs have helped to clarify. 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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  • Ivan Ng
    Hi.

    From HDB to BTO, it is understood you have to sell away the existing HDB, and you have to sign an undertaking with HDB to sell away the existing HDB, hence no ABSD is payable. There will not be CPF BRS or LTV restrictions. It is different from getting private property.

    Hope that answers the query. It is also a bit of luck involved since BTO is about balloting too.

    Thanks,
    Ivan
     97432395 
  • Hi

    Thank you for willing to assist,

    Am I considered as a 2nd property buyer the moment I BTO, since I am living under a flat bought in open market (and service under bank loan)?
    If that is so, then wont the 2nd property ABSD will apply, CPF Basic Retirement Sum (SGD 96K) will be locked?
    I also understand the LTV will be 45%, and hence, my cash outlay /Cpf outlay will need to be 55%?
    Thanks
Hi,

I would be most glad to assist you further and please feel free to let me know if you need any assistance. Have a good day ahead.

Regards
Aaron Chong
 9730 8455 
aaronchong2774@yahoo.com.sg Read More
0
  • Hi

    Thank you for willing to assist,

    Am I considered as a 2nd property buyer the moment I BTO, since I am living under a flat bought in open market (and service under bank loan)?
    If that is so, then wont the 2nd property ABSD will apply, CPF Basic Retirement Sum (SGD 96K) will be locked?
    I also understand the LTV will be 45%, and hence, my cash outlay /Cpf outlay will need to be 55%?
    Thanks
Hi K.S,

1)
a) You shall be eligible for a bank loan even for a BTO flat.
b) The recent cooling measures did not address anything for residents who are applying for a bank loan. That will only affect the residents who are applying for HDB loans, where their downpayment has increased by another 5%.
c) It is still the same down payment amount for a bank loan; 25%, where 5% must be in cash.
d) The buying process of a BTO are as follow:
(i) After booking a flat, you will have to indicate where you are getting the financial assistance.
(ii) If you are taking a loan from a bank, you will need to submit a Letter of Offer and appoint a lawyer to act for the purchase and mortgage around 4 months after booking the flat.
This implied that you will have to show hand all your funds available including your CPF account, bank loan to the HDB. This is also the time to pay the buyer stamp duty of ~3%.
(iii) Your final payment is during the collection of keys where you have to pay the 20% using CPF or cash. This is assuming you received 75% LTV from the bank.

2) There is no ABSD when you are changing from an HDB flat to an HDB flat.
3) No BRS locking because you are not buying a 2nd property. Buying another HDB flat is not considered as buying a 2nd property.
4) Your loan limit will not be kept at 45% but max at 75% because it is understood that you cannot keep 2 HDB flats. Thus you will be assessed assuming you don't have an existing mortgage loan.

Hope the above answer 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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Robbie Chen Chee Howe
Hi K.S,

Yes, you're eligible to take a bank loan for your BTO flat purchase.

Loan eligibility is based on your MSR/TDSR, and the recently cooling measures have near zero impact as the measure are not meant to penalize first time home buyers looking for own stay.

Cash payment for bank loan is minimum 5%. However, as yours is a BTO flat, HDB will not call for the payment until later when the flat is ready for possession.

I am experienced and well-versed in both HDB and private transactions. I will be able to assist you in your property plans. Please get in touch with me for a more in-depth discussion.

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
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