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Looking to buy my first hdb flat (resale) in about a month's time. At first I was keen on getting a bank loan right from the start (because I want to take advantage of low-interest rate of 1.5%). However, as I'm in between jobs right now, I won't be able to get my first pay slip for the new job till end of May. This means that if I were to apply for bank loan now using my previous pay slips (salary is lower), the loan amount offered will be less than ideal.

So now, I'm considering taking on a HDB loan first, ride it out for some months, then refinance to bank loan.

Thing is, I've tried to find info on this online. NOTHING.

Has anyone had experience refinancing from HDB loan to bank loan within the first year? What's the lock-in period for the hdb loan - if any?
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4 Answers

Hi
There is no lock in period for HDB loan and you can easily refinance back to bank loan provided you have settled 25% downpayment for your future flat as per bank loan requirement. Do contact me at 93375051  for a free and non obligatory discussion on this and I am more than happy to assist.

Regards
Taufik Hussein
ERA Realty Network Pte Ltd Read More
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Robbie Chen Chee Howe
Hi,

My suggestion for you would be to stick to bank loan. Because even if you apply for HLE now, you will still need to wait for it. Also, if you take the HDB loan and then restructure to a bank loan later, it will still be considered that you had utilised 1 time HDB loan.

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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Hi,

There is no lock in period for hdb loan, you can refinance straight away after the completion. The only downside is all your CPF OA must be fully utilized before hdb loan is disbursed due to hdb regulation.

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.

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Hi,

1) This is an interesting question.

2) There are 2 main items you have to be aware of:
(a) Loan structure:
HDB: min 10% downpayment, max 90% loan-to-value
Bank: min 5% cash, +20% downpayment, max 75% loan-to-value
(b) switching from one to the other:
HDB -> Bank = anytime
Bank -> HDB = no way

3) As illustrated above on the loan structure. Unless you have sufficient CPF or cash to start with 25% downpayment and loan only 75%.
When you switch to the bank, you don't have to fork out the difference. There is a difference of 15% in downpayment between HDB and bank.

4) Beware that once you took an HDB loan, your CPF OA will be wipe out and max allowed to keep $20k.

5) Loan amount for both HDB and the bank does not vary a lot as they are using the same measures (MSR) instructed by MAS to decide how much loan you can be allowed to receive.

6) Suggest you speak to an agent to understand how much you could get in terms of the loan, and discuss in detail to decide which is a better option for you.

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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