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Hi, appreciate your sharing. Contra meaning sell and buy at the same time.
Looking forward to assist you at 9696 4398  or email me at stewartlim96964398@gmail.com

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Stewart-PropNex Read More

Hi,

To have a better understanding of the difference between HDB temporary loan and contra facility, please refer to the link:
https://www.hdb.gov.sg/residential/buying-a-flat/buying-procedure-for-new-flats/key-collection

In summary,
> Contra Facility is buy and sell at the same time and it can help you to:
- Reduce the cash outlay needed for your booked flat
- Reduce the housing loan amount needed and the subsequent monthly repayments

> Temporary loan is a mortgage of the new flat and will be redeemed subsequently, with the net proceeds from the sale of your existing flat.

For further clarification or queries, please kindly contact me.

Best Regards,
John Lai
Associate Marketing Manager
PropNex
(M): 8444-0899 
Email: johnlaiproperty@gmail.com

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Hi,

The HDB temporary loan and contra facility are two different financing options available to HDB flat buyers in Singapore. Here are the differences between the two:

1) HDB Temporary Loan: The HDB temporary loan is a short-term loan provided by HDB to help buyers with the down payment on their flats. The loan is intended to be a bridge between the initial payment of the flat and the disbursement of the CPF funds and bank loan. It can be used to pay for the down payment and other initial costs such as stamp duty, legal fees, and other related expenses. The maximum amount that can be borrowed is $8,000, and it must be repaid within 3 months after the disbursement of the CPF funds and bank loan.

2) Contra Facility: The contra facility is a financing option that allows HDB flat buyers to offset the purchase price of their flat with the sale proceeds of their existing property. Essentially, the contra facility enables the buyer to use the proceeds from the sale of their current flat to offset the purchase price of their new HDB flat. The buyer can only use the contra facility if they have an existing HDB flat or private property to sell. The maximum amount that can be used for contra is the difference between the selling price of the existing flat and the purchase price of the new flat.

In summary, the HDB temporary loan is a short-term loan to help buyers with the down payment and initial costs of their flat, while the contra facility allows buyers to offset the purchase price of their new flat with the proceeds from the sale of their existing flat.

Please give me a thumbs-up if the answer provided is relevant to your main concern. Thanks!!!

Hope the above answer your main concerns, but if there are more queries, 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
https://www.linkedin.com/in/ckling/

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Hi,

Temporary loan in short is for new BTO flat purchases that will be fully paid, and you can only apply if your existing flat has been fully paid, sold and resale application approved. This allows you to take the new BTO key for reno or earlier move in even though your sale application is ongoing and proceeds not back yet. When the sale proceeds are back, they will be used to redeem the temporary loan.

Contra is a bit different, and you must be taking hdb loan for the next purchase. Cannot apply for cases where there is bank loan. And it can also be used if there is still HDB loan outstanding after the transactions, need not be fully paid purchase unlike temporary loan scenario. And again can only apply contra when your new BTO key is ready and you have already found a buyer for your existing property. The benefit is similar, this allows you to take the new BTO key for reno or earlier move in even though your sale application is ongoing and proceeds not back yet. When the sale proceeds are back, they will be used to redeem part or the whole amount of the hdb loan.

Hope the above clarifies. I have helped various homeowners to smoothly transit to their next BTO property and sell off their existing HDB flat. May I have more info and requirements about your plans so as to make better recommendations? Thanks and look forward to value-add to your housing plans.

Warm Regards,

Ivan Ng Realtor
ERA Senior Marketing Director
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-- HDB Toa Payoh 5-RM Sellers of Million-Dollar HDB, Mr. & Mrs Leong

We were fortunate to have met Ivan Ng. He was thorough in going through what the complicated home-selling process required of us and more so in understanding what we would like to achieve from the sale of our unit. His responsiveness and assurance, was a trait that we really appreciate. We managed to secure a sale that exceeded our expectation with Ivan’s advises. The offered price for our unit was a record set for the flats in the neighborhood. This was definitely supported by the fact that Ivan’s listing of our unit was detailed and stood out from other listings. Because of this, we also engaged Ivan's service to help us search and buy our new resale home. After some searches and viewings, we managed to secure one at a reasonable price with his help. With Ivan’s cheery and positive demeanour, selling our unit to procuring a new one, was a smooth journey for us. It was a pleasure to have worked with him.

-- HDB Executive Maisonette Sellers, Mr & Mrs Yeo --

Before contacting Ivan Ng, our Property Realtor, we were quite apprehensive about our Contra-deal ( concurrent resale & purchase of HDB flats) as at that time the outlook of the resale property market was quite sluggish & pessimistic. But surprisingly our property realtor, Ivan , was able to put us at ease with his professional competence, astute work experience & friendly nature . He was able to consummate our contra-deal within one month of our HDB application.Thank you very much, Ivan. We are definitely your satisfied customers! Read More

HDB temporary loan and contra facility are two different financing options available to HDB flat buyers.

HDB temporary loan is a short-term loan that HDB provides to buyers to help them with the downpayment or to cover other costs related to the purchase of an HDB flat. The loan amount is capped at 10% of the purchase price or valuation of the flat, whichever is lower. The loan must be repaid within 3 months or upon the disbursement of the buyer's housing loan, whichever is earlier.

On the other hand, contra facility is a feature available to buyers who are selling and buying an HDB flat at the same time. It allows the buyer to use the sales proceeds from their existing flat to offset the purchase price of their new flat. For example, if the purchase price of the new flat is $500,000 and the sales proceeds from the existing flat is $450,000, the buyer can use the contra facility to pay only the remaining $50,000 in cash.

In short, HDB temporary loan is a loan provided by HDB to help buyers with the downpayment or related costs, while contra facility is a feature that allows buyers to offset the purchase price of their new flat with the sales proceeds from their existing flat. Read More

Hi Sir/Mdm,

To put it simply, a HDB temporary loan is when HDB grants you a loan at market rate interests for you to collect keys for your new flat while waiting for the sale proceeds from the sale of your flat. In this way, you will incur an interests for the loan during the loan period.

For contra, we will time the sale and purchase together so that your sale proceeds can be used towards the key collection of the BTO flat. There will not be any interests incurred on your end.

For most of my clients, I would plan for them to use contra so that they do not need to incur any additional cost during the transition.

Feel free to contact me so that I can understand your situation and advise you on what is the best way forward!

Regards,
Nick Tan
(M) +65 9644 4854 
B.Eng(Chemical)(Hons)(NUS) / Cert-in-REA
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“Nick provides a delightful customer experience from day one when I engage him as my agent to look for a flat of my choice to the completion of the deal. He is competent, resourceful and has a pleasant manner to work with. H Read More