Planning for your next flat purchase should be part of your considerations when you sell your current flat. Before you commit to sell your flat, you should consider the following:
Options available for next flat
You may be able to buy a flat from HDB. Check out the following information:
From the open market
Another option is to buy a resale flat. Check out the following information:
From property developers
Property developers offer units under the Design, Build and Sell Scheme (DBSS) and Executive Condominium Housing Scheme. The eligibility conditions are similar to those for buying a flat from HDB.
DBSS flats offer wider design options as developers are free to decide on the designs, finishes, as well as the size and unit configurations. Check out the following information:
EC units offer design and facility options similar to private condominiums, at competitive prices. Check out the following information:
Property developers also offer private housing units.
Financial planning is important and should be done before commencing your next flat purchase. If you intend to buy an HDB flat, you should consider the following:
Financing considerations when buying a new HDB flat
Financing considerations when buying an HDB resale flat
Requirements for taking a second HDB housing loan (if applicable)
Eligibility for the Enhanced Contra Facility (ECF)
For those taking a second HDB housing loan, the loan amount will be reduced using the CPF refund and up to 50% of the cash proceeds from the disposal of the existing or last-owned HDB flat. This prevents over-borrowing and promotes financial prudence.
The manner of disposal of a flat includes sale, transfer or surrender of a flat, or by any other permissible method under the Housing and Development Act or any other written law.
HDB reserves the right to determine the amount of proceeds to be used, either by taking into account the manner of holding of the existing/last-owned flat, or according to any court order that provides for the disposal/division of the flat.
Generally, flat buyers can keep the greater of $25,000 or 50% of the cash proceeds (including the cash deposit received), and HDB will take into account the remaining cash proceeds when determining the second HDB housing loan amount.
If you are buying an HDB flat after disposing of the existing one
You and the essential occupier will have to use up to 50% of the cash proceeds from the disposal of the existing HDB flat. You may retain up to $20,000 in your CPF Ordinary Account and use the rest of the available CPF Ordinary Account balance to buy the next flat.
Use the sale proceeds calculator to work out how much cash proceeds you need to set aside for your next flat purchase.
If you are buying an HDB flat before disposing of the existing one
You will be charged commercial interest rate (pegged to the average non-promotional interest rate for buying of HDB flats offered by the three local banks) for the second HDB housing loan to buy the next flat.
The loan interest rate will be converted to concessionary rate after you disposed of the existing flat, and used the CPF refund and up to 50% of the cash proceeds from the disposal to reduce the housing loan amount for the next flat purchase. From the CPF refund, you may retain up to $20,000 in your CPF Ordinary Account.
If you intend to buy a resale flat using the sale proceeds and CPF refund from the disposal of your current flat, you can apply for the Enhanced Contra Facility to reduce your cash outlay. Find out more about the Enhanced Contra Facility.
Find out more about the streamlined resale process with the HDB Resale Portal.
It is important to understand and follow the resale procedures to ensure a smooth flat selling journey. Read the details in the following sections.