Progress payment schedule
You will commence payment of the monthly instalments once the HDB loan is disbursed under the Gradual Repayment Plan – the instalments will be calculated based on the amount of loan disbursed over the outstanding loan duration. The instalment amounts will comprise both interest and principal.
Existing flat owners with a mortgage loan
You will have to continue servicing the existing loan while also making payments for the new loan for the DBSS flat.
Existing flat disposed of after taking possession of DBSS flat
If the HDB housing loan for the DBSS flat has been fully disbursed, the loan quantum will be reduced taking into account the CPF refund and cash proceeds from the existing flat.
Existing flat disposed while DBSS flat is under construction
If monthly instalments are still being paid according to the Payment Schedule, you have to use the sales proceeds to redeem the loan that has been disbursed towards the progress payment, and use the balance proceeds towards payment of subsequent progress payments. The developer can take action on the buyer for non-payment. HDB will only disburse the net loan after your CPF refund and cash proceeds have been exhausted, in accordance to the payment schedule.
While waiting for the DBSS flat that you have booked to be completed, you may wish to get a second HDB concessionary loan to buy a resale flat for transitional housing. Upon disposal of the resale flat, the CPF refund and up to 50% of the cash proceeds from the disposal of the resale flat must be used to reduce the DBSS loan.