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Hi,

1) There were no information on HDB web whether you will encounter penalty to withdraw from the loan agreement.
2) It is best for you to approach the HDB with your question, and ask for advices on what should you do to counter such situation.
https://services2.hdb.gov.sg/webapp/BF12AWFeedback/BF12SFrontController?service=ServiceFeedback&operation=createFeedback

All The Best!!!

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I can't find information about penalty for HDB loan early redemption in this part but as per what HDB policies when it comes to home loan, they are always looking at reducing the loan size for home buyers as much as possible, therefore they require buyers to set aside 50% of the cash proceeds generated from the sale of flat to finance the purchase.

Speak to HDB for a clearer answer.

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Hi

You may wish to confirm with the BTO HDB officer handling your case on the above query, they will be able to advise exactly.

My guess is, if you choose not to take up HDB loan, they will need you to make full settlement of balance of purchase price (as well as resale levy) through your sale cash proceeds + CPF OA. This total amount combined, is it sufficient to cover? From your query it seems possible.

Your scenario is unique because if you mention to them you like to take hdb loan, they will follow the hdb regulation sequence to set aside your 50% sale cash proceeds, then draw down all your CPF OA available (refund plus current OA) to cover the total of balance purchase price plus resale levy. And since it is sufficient, they will not need to approve any hdb loan for your case. So basically this goes back to the same outcome as though you decide not to take up HDB loan.

It seems like there is only 1 method for you regardless and there is no need for HDB loan. I do not think there will be any penalty for not taking up the HDB loan, but you may wish to confirm with the officer all the above.

Hope the above clarifies. I am well-versed with HDB and private property transactions, having helped more than 100 homeowners transit smoothly with their housing plans. Please reach out to me at 97432395  for a more in-depth discussion :)

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I would be glad to assist you.
Feel free to contact me at wa.me/6597100155
Hope to hear from you soon.
Pei Mobile: (65) 9 7 1 0 0 1 5 5.
Email: peicheng.tan@propnex.com
Associate Group Director
Propnex Realty Pte Ltd Read More

I’m Aren Goh from PropNex. If you can fully fund your 2nd flat after selling your current one, you might not need to take the 2nd HDB loan. Canceling it is possible, but it’s best to check with HDB if there’s any penalty or admin fees at this stage. If you don’t cancel and keep the loan, yes, the rules about using 50% of your cash proceeds to reduce the loan still apply, even if your CPF can cover the rest.

If you want, I can help you navigate this and connect you with the right contacts to clarify. Just reach out anytime at 9657 6701  . Read More

1. HDB’s website does not clearly state if there is a penalty for withdrawing from a loan agreement early.
2. The best step is to contact HDB directly for advice on how to handle this situation.
3. Generally, HDB encourages reducing loan amounts, requiring buyers to set aside half of the cash proceeds from a flat sale for the new purchase.
4. For precise details and clarity, speaking directly with HDB is recommended.

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Hi Sir/Mdm,

There is no financial penalty to cancel the 2nd HDB loan. However, if you wish to take up, you can and you will be subjecting to the right sizing of loan which means that you have to use all your CPF (only allowed to leave 20k in your CPF OA) and 50% of your sale proceeds towards the next house.

If your CPF is sufficient to cover, then HDB wont be granting you a loan. I have recently assisted my clients who are in the same situation as yourself.

Please feel free to contact me so that I can explain to you in details the important issues that you may want to take note of when transiting from your current place to your new BTO.

Regards,
Nick Tan
(M) +65 96 44 48 54
B.Eng(Chemical)(Hons)(NUS) / Cert-in-REA
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Selling our house was a pretty stressful ordeal, as we have already committed to buying our new home and hence have a timeline to meet. Losing a substantial deposit and worse still, not getting our dream home caused many sleepless nights as we are nearing our deadline. I am very glad we have decided to switch to Nick and seek his help after the dismal performance of our first agent. Not only is Nick very patient in explaining things to us, time and time again he gives us reassurance t Read More

While you may do so, what you are describing may not be the best move financially for you. There are many considerations to factor in when deciding whether to cancel the 2nd HDB loan you have secured, that will have very significant consequences to your asset progression journey.

I'm a Harvard graduated real estate agent with a degree in economics, and I have a decade of experience working on Singapore public policy. I would love to schedule a free consultation to discuss your options if you need any support.

Feel free to reach out via whatsapp or email.

Kay Cloud
The Harvard Educated Agent
Propnex Realty Pte Ltd
cloud@propnex.com
Tel: (+6.5.) 8.5.6.7.4.5.8.5
Whatsapp -> https://wa.me/6585674585 Read More