Options for Your Next Flat
Planning for your next flat should go hand in hand with the flat you are intending to sell. Here are some pointers on how you can begin searching for your next home.
You may be able to purchase your next flat directly from us. Check out the following information:
From the open market
Another option is to purchase a resale flat from the open market. Check out the following information:
If you intend to buy a resale flat using the sale proceeds and refunded CPF money from your current flat, you can apply for the Enhanced Contra Facility.
From private developers
Private developers offer Design, Build and Sell Scheme (DBSS) flats and Executive Condominium (EC) units. The eligibility conditions are similar to that for buying an HDB flat.
DBSS flats offer greater design options as developers are free to decide the designs, finishes, as well as size and unit configurations. Check out the following information:
ECs offer design and facility options similar to private condominiums, at competitive prices. Check out the following information:
Financial planning is important and should be done before your next purchase. To help you better plan your finances, you may refer to:
Taking a second HDB loan
If you plan to apply for a second HDB concessionary rate loan, do note that the loan amount has to be reduced by using your full CPF proceeds and part of the cash proceeds from the sale of your current or immediate past HDB flat.
You may keep $25,000 or half of the cash proceeds, whichever amount is more. We will take into account the remaining part of the cash proceeds when determining the amount of the second loan to be granted to you.
The right-sizing of loan amount ensures that you do not take a larger second concessionary loan than necessary, and can help to reduce the likelihood of subsequent mortgage arrears.
Check out the following 2 scenarios you can find yourself in:
If you are buying a resale flat after selling your current flat
You have to use up to half of the cash proceeds from the sale of your current or immediate past HDB flat, and all of the CPF balance to finance the purchase of your next flat. This applies regardless of when you sold your previous HDB flat.
If you are buying a flat before selling your current flat
As you would not have received the proceeds from the sale of your existing flat when you apply for an HDB loan, we will grant you a bigger loan at commercial interest rates.
The commercial interest rate is pegged to the 3-month average non-promotional interest rate for purchase of HDB flats offered by the 3 local banks. Currently, the rate is 3.38%.
After the sale of your current flat, you will have to redeem this loan with the full CPF refund and part of the cash proceeds from the sale of your existing flat. Upon redemption, the loan will be converted to a concessionary rate loan.