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Residential

Planning For Your Next Flat

Planning for your next flat should be part of your considerations when you sell your flat. Before you commit to sell your flat, you should consider the following:

  • Options available for next flat

  • Financial considerations

  • Procedures

Options available for your next flat purchase

From HDB

 

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:

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

 

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

 

ECs offer design and facility options similar to private condominiums, at competitive prices. Check out the following information:

 

Financial considerations

Financial planning is important and should be done before your next flat purchase. If you intend to buy an HDB flat, you should consider the:

 

Requirements for taking a second HDB loan

For a second HDB concessionary housing loan, your loan quantum will be right-sized by utilising the CPF monies refunded and up to 50% of the cash proceeds from the disposal of the existing or previously owned HDB flat. This facilitates financial prudence and prevents over-borrowing.

The manner of disposal of a flat includes the sale, transfer or surrender of a flat, or by any other 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/ previously owned HDB 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 part of the cash proceeds when determining the quantum of the second HDB concessionary housing loan.

If you buy 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.

If you buy 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 HDB flats offered by the 3 local banks) for the housing loan to buy the next flat.

The interest rate will be converted to concessionary rate when you have disposed of the existing flat, and have used the CPF monies refunded and up to 50% of the cash proceeds from the disposal to repay the housing loan for the next flat purchase. From the CPF monies refunded, you may retain up to $20,000 in your CPF Ordinary Account.

Eligibility for the Enhanced Contra Facility (ECF)

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. Find out more about the Enhanced Contra Facility .