Hi,
I guessed you are referring to Contra Payment Facility for New Flats.
There are 2 types of "Contra " related policy in HDB purchase.
Both have similarities as follow:
1) You have an existing flat
2) You had used once HDB loan for an existing flat.
3) Intend to use 2nd HDB loan.
4) You must use only an HDB lawyer.
Contra Payment Facility: is for purchasing a new HDB flat.
Enhanced Contra Facility: is for purchasing resale HDB flat.
1) Contra Payment Facility: This is an additional loan on top of your housing loan, after including all available CPF balances for the flat purchase.
This assistance is supposed to be redeemed upon sales of the current flat.
a) this is meant to reduce the cash outlet needed for a new flat.
b) Reduce mortgage loan amount needed and subsequent monthly repayments
c) Collect keys to new flat and renovate while selling existing flat
Limitations/Condition:
a) The proceeds from the sale of the current flat cannot be used to pay for the downpayment of the new flat.
b) You can only collect keys to the new flat on or after the date of approval of your resale application.
c) You still have the choice to use either a CPF contra arrangement or a CPF and cash contra arrangement.
d) Since you are using a 2nd concession HDB loan, ~50% of your cash proceed from the sale of the existing flat has to be used to finance the new purchase. This is to prevent over-borrowing.
2) Enhanced Contra Facility: sell existing buy a resale using sale proceeds and refunded CPF monies.
a) Reduce cash outlay needed for resale HDB flat
b) Reduce mortgage loan amount needed and subsequent monthly repayments.
Limitations/Conditions:
i) Refunded CPF monies cannot be used for payment of stamp duty and conveyancing fees.
ii) Must use "ALL" existing balance CPF OA
iii) Must use "All" CPF refunded to CPF OA from the sale of flat except $20k as revised policy permitted,
iv) By taking up the 2nd HDB loan, the loan amount will be reduced up to 50% of the cash proceeds from the sales. This is to prevent over-borrowing.
Cash proceeds refer to the net amount payable to you after deducting the following:
a) Deposit
b) Outstanding mortgage HDB loan
c) Resale/upgrading levy
d) All CPF refunds + accrued interest
e) Other sums due and payable to HDB
Since you are asking whether the cash used to pay 10% should be counted as part of the cash proceeds from the last HDB disposal for your BTO.
You are using "Contra Payment Facility" in this case.
Only the 10% downpayment is counted as part of your cash proceed.
However, the stamp duty and conveyancing fee of your BTO does not contribute to the payment of your BTO thus cannot put into consideration as part of the cash proceed.
Hope the above answer to 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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