4 Answers

Ivan Ng
Good afternoon Kenneth,

If the sale price cannot cover the outstanding HDB loan and CPF utilized + accrued interest, it does not mean you cannot sell your flat, it just means it will be a negative sale.

When that happens, if the flat's sale price is at or above valuation price, the HDB loan will be fully paid off first, but the CPF utilized + accrued interest will not be able to be fully refunded. There is no need to top up the CPF to be refunded if the flat's sale price is at or above valuation price.

If you already have plans to sell off the HDB in the future, it is not recommended to make full repayment of existing HDB loan since there is no need to do so and the accrued interest will only build up further.

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,
(ASk Anything Property)
Proactive. Sincerity. Feedback.
SMU BBM (Finance), Magna Cum Laude

Email: Ivanng10@gmail.com
Contact: (+65) 97432395
Facebook Page: www.facebook.com/ASAProp
Website: http://www.ivanng10.com/clientreviews
(Client's Testimonials)

**Note: We are not prompted when you respond here, hence please get in touch directly. Look forward to hear from you soon! **

-- HDB BTO 4rm Sellers Mr. Farvin & Ms. Sel --

Ivan was the first agent that we met up with and right from the offset we had good vibes as he has a friendly personal approach, detailed working style and focuses on building the long-term relationship.

Our unit comes with its challenges but Ivan remained positive and had no qualms committing to our plans right from the start. It took only 6 weeks of aggressive marketing for him to secure a good offer which was a pleasant surprise in the end.

Ivan was always responsive and we had no worries to pass him the house keys. The whole process was transparent and hassle free, and he was always thinking from our point of view on how to make life easier for the client. He is a committed professional and has fast execution, so we felt assured that things are done well and we can entrust the sale process entirely to him.

--- HDB Flat Upgraders Mr. & Mrs. Lee ---

We decided to engage Ivan as our agent as we were impressed with how he answered the enquiries on property guru website.

He has helped us to find our ideal unit and also sold our current unit. He was very patient and never pushy when we were looking for our ideal unit. He would tell us that it is always important to find a unit that we really liked.

When it comes to selling of our unit, he was always prompt in arranging for viewings and he also tried his best to arrange and consolidate the viewings due to our time constraints. He is a reliable and prompt agent and is always willing to clarify any concerns and questions that we have.

Thanks Ivan! :)

-- HDB 5-rm Sellers Mr. & Mrs. Ting --

We have engaged the services of Ivan Ng for sale of our property at Pandan Gardens. He is professional and systematic in his marketing approach.

He is hardworking and committed to his work. He puts in great efforts in arranging clients for viewings and kept us updated thereafter. He is ever ready to help and guide us whenever the need arises.

He provided us with sound and useful advice as well as closely follow through from the start till the smooth sale of the property within a short period of time.

Thanks, Ivan. Keep up the good work! Read More


Nick Tan
Hi Kenneth,

Not to worry too much. This is quite a common situation for a lot of owners. It is considered as a negative when your sale price is not sufficient to cover the outstanding loan and the CPF refund plus interests.

In a case of a negative sale, it is important to sell the unit at or above valuation so as to avoid topping up the shortfall in CPF in cash. If you intention is to sell your unit and purchase another unit next year, then it will not be necessary to redeem the loan now.

I have personally assisted many clients who are in a position of a negative sale to transit successfully and seamlessly from their current flat to the next flat. The key is to plan the timeline and finances properly and carefully before embarking on the sale.

Please feel free to contact me so that I can understand your situation better and propose a transition plan and timeline for you!

Nick Tan
(M) +65 9644 4854
B.Eng(Chemical)(Hons)(NUS) / Cert-in-REA
(E) nick96444854@gmail.com
Visit my website to know me better: www.nicktan.com.sg
I was featured recently on Council for Estate Agencies (CEA) Newsletter:

Testimonial from Satisfied Clients
“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.

Weilun & Benita (Property Seller)

“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) Read More


Robbie Chen Chee Howe
Hi Kenneth,

Based on your description, what you're faced with is the situation of a negative sale.

Since you're already faced with this situation today, selling your flat next year would unlikely solve this problem, unless your HDB flat prices appreciates more than 2.6% plus whatever the shortfall over the next 1 year.

Your main objective now would be to sell the flat at or above valuation, because you may need to top up the shortfall if you sell the flat below valuation. This may be a concern for some owners, depending on the location of your HDB flat.

As for whether to fully settle your outstanding loan, I would suggest not. Because by not settling it, you do have the option to proceed with the purchase of the next flat using your CPF funds first. Should you fully settle the outstanding loan, you may not have enough funds for your next purchase, and the only option you have would be to sell your current flay first before you can commit to your next purchase.

Do get in touch with me for a more in-depth discussion on your plans going forward.

Should you need any 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 and your family in the current market.

Thank you.

Best regards,
Robbie Chen
9748 6305
PropNex Realty Read More


Yian Tay
hi Kenneth, your query is something that many HDB owners have often asked themselves. When you use your CPF to repay your mortgage this is what happens:

1) you do not earn interest in your CPF
2) you incur an accrued interest which is payable when you sell the flat

I have cases where because it is an aging flat, in a not so popular area of the town, such sales can result in a negative sale. This means that the sale price & valuation is below what has to be paid back to CPF from the sales proceeds.

How does that affect you? You will need to appeal, or CPF board will require you to make good the deficit.

However every situation is very different without understanding all the information and facts, it is very difficult to advise you in general. If the HDB property is losing value, or if the HDB Property has a potential upside all may have bearing on your decision to pay up the loan or not.

All the best
Yian Tay
PropNex Realty Pte Ltd
Associate Branch Director Read More