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Old 07-05-2010, 04:47 PM   #1
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WTA : HDB new rule (Right-sizing the Quantum for the Second Concession).

Aiyo , the HDB ruling keep changing , change till i faints.. Anyone can help me with this ? I am intending to sell my 4 room flat in pasir ris , to buy the BTO in Senja. My agent told me that half of my sale proceed will hv to go to my new house . I will be selecting my new house first , before selling my pasir ris flat , So how huh ? do i need to use my 50 % sale proceed to my new hse ? Thanks huh ... English no good , cannot uncerstand



http://www.hdb.gov.sg/fi10/fi10296p....C?OpenDocument
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Old 07-05-2010, 06:00 PM   #2
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Aiyo , the HDB ruling keep changing , change till i faints.. Anyone can help me with this ? I am intending to sell my 4 room flat in pasir ris , to buy the BTO in Senja. My agent told me that half of my sale proceed will hv to go to my new house . I will be selecting my new house first , before selling my pasir ris flat , So how huh ? do i need to use my 50 % sale proceed to my new hse ? Thanks huh ... English no good , cannot uncerstand



http://www.hdb.gov.sg/fi10/fi10296p....C?OpenDocument
In simple example.....The new rules apply ONLY when you're taking the 2nd HDB loan...

Let say after selling yr flat and the Cash proceed is $45K, U will be able to keep the minimum of $25K & remainder of $20K will be use for yr new flat....

But if yr Cash proceed after selling, let say $180K, then the 50% rule kicks in...so you can only keep $90K in this case....

If you look at it, any amount above $50K will be 50%....

If you buy 1st, then HDB will loan you to the max you could afford but at Market interest rate, which currently is 3.82%....

And later when you sell yr existing flat, all CPF that came back from the sale of yr existing flat will put back to yr new flat ( that is what they meant by redeem the loan with the full CPF )& let say your cash proceed is $120K( this is the Cash you would have keep it all before the new ruling ) so $60K will go back to yr new flat....And the interest rate will be revised to the HDB concession rate which is 2.6% now....cheers
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Old 08-05-2010, 05:13 AM   #3
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Alamak , then die la , calculated liao leh my this current hse can sell ard 340k , my outstanding mortgage is ard 155k , cpf back ard 70k , buying new bto at ard 155k, must pay resale levy 38k , then also hv to rent room outside , cos got to sell current flat to pay down payment , then rent room $800 x 48 mths(max)=39k , faint la , still got agent fee , stamp fees , legal fee , where got enuff??? HDB realli like wat wan , oredi think of buying new flats , 2 years ago , but keep getting problem. btw hdb got offer us 2 room flat to share with another family , but 2 room flat leh , my family oredi 4 ppl , if another family , another 4 ppl, how to live ??wah lao , realli fed up
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Old 08-05-2010, 11:00 AM   #4
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y u have to pay levy?

cause yr current flat was bought 1st hand from hdb or it's resale flat with grant?
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Old 08-05-2010, 01:47 PM   #5
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my first flat from hdb (walk -in -selection)(hdb loan), current flat (bought from open market)( hdb loan) , now going to apply bto , hdb loan , thru appeal with hdb , but loan amount onli 50k
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Old 09-05-2010, 04:05 PM   #6
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my first flat from hdb (walk -in -selection)(hdb loan), current flat (bought from open market)( hdb loan) , now going to apply bto , hdb loan , thru appeal with hdb , but loan amount onli 50k

Reason being that if you apply any loan through appealing, the calculation for your loan is different from the normal calculation.
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Old 10-05-2010, 01:14 PM   #7
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In simple example.....The new rules apply ONLY when you're taking the 2nd HDB loan...

Let say after selling yr flat and the Cash proceed is $45K, U will be able to keep the minimum of $25K & remainder of $20K will be use for yr new flat....

But if yr Cash proceed after selling, let say $180K, then the 50% rule kicks in...so you can only keep $90K in this case....

If you look at it, any amount above $50K will be 50%....

If you buy 1st, then HDB will loan you to the max you could afford but at Market interest rate, which currently is 3.82%....

And later when you sell yr existing flat, all CPF that came back from the sale of yr existing flat will put back to yr new flat ( that is what they meant by redeem the loan with the full CPF )& let say your cash proceed is $120K( this is the Cash you would have keep it all before the new ruling ) so $60K will go back to yr new flat....And the interest rate will be revised to the HDB concession rate which is 2.6% now....cheers
Hi. How if I have used up the cash proceed?

Eg. from 55k to 20k or used up all. Will I still be able to apply for the 2nd concession loan? Thanks..
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Old 10-05-2010, 01:26 PM   #8
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Hi. How if I have used up the cash proceed?

Eg. from 55k to 20k or used up all. Will I still be able to apply for the 2nd concession loan? Thanks..
Hi,
I had post this questions to the HDB officer doing resale transactions, at the moment none of them can answer me.

I ask them " First flat with HDB loan sold today, sale proceed get back 100k cash,
decided to stay with parents for few years not buying any flat now

5yrs down the road decided to buy a resale flat using 2nd HDB loan, but cash procced 100k all used up by then, can still proceed to take HDB loan? "

(I have to assume this rule is new and they have not factor this scenario into consideration).

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Old 10-05-2010, 05:30 PM   #9
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Hi. How if I have used up the cash proceed?

Eg. from 55k to 20k or used up all. Will I still be able to apply for the 2nd concession loan? Thanks..
HDB says Flat buyers can keep the greater of $25,000...Meaning that if example your cash proceed is $26K.....You would keep that $25K & put that $1K back to yr new flat...

Therefore, if your Cash proceed is only $25K -$0, you would keep up to $25K....

If you have spend all the cash proceed which is suppose to be use for the new house, then is confirmed that a 2nd loan will not be allowed....

And apart from the new policy, you have to adhere to the TERMS AND CONDITIONS OF HDB HOUSING LOAN. ie ELIGIBILITY CONDITIONS FOR AN HDB & LOAN CREDIT ASSESSMENT...

Last edited by VivoCity; 10-05-2010 at 05:42 PM..
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Old 10-05-2010, 06:01 PM   #10
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Just a short update with regards to spending your cash proceeds and wanting a 2nd HDB Loan.

I have tried to appeal a couple of cases for my client and has gotten the approval with the following basis.

1) Show HDB how long ago was the completion
2) Show evidence of my client finish using up the cash proceeds
3) Based on appealing and it might be abit time consuming.
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Old 10-05-2010, 07:59 PM   #11
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Hi,
I had post this questions to the HDB officer doing resale transactions, at the moment none of them can answer me.

I ask them " First flat with HDB loan sold today, sale proceed get back 100k cash,
decided to stay with parents for few years not buying any flat now

5yrs down the road decided to buy a resale flat using 2nd HDB loan, but cash procced 100k all used up by then, can still proceed to take HDB loan? "

(I have to assume this rule is new and they have not factor this scenario into consideration).

vinz
Hi. This rule is sure new. In fact, I believe this is a last minute change.

Anyway, I did ask a similar question to HDB. Do check my next posting..
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Old 10-05-2010, 08:21 PM   #12
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HDB says Flat buyers can keep the greater of $25,000...Meaning that if example your cash proceed is $26K.....You would keep that $25K & put that $1K back to yr new flat...

Therefore, if your Cash proceed is only $25K -$0, you would keep up to $25K....

If you have spend all the cash proceed which is suppose to be use for the new house, then is confirmed that a 2nd loan will not be allowed....

And apart from the new policy, you have to adhere to the TERMS AND CONDITIONS OF HDB HOUSING LOAN. ie ELIGIBILITY CONDITIONS FOR AN HDB & LOAN CREDIT ASSESSMENT...
Hi. Thanks for your sharing. In fact, I do wish that was the case and things would be a lot easier..why? Like if I have left 25k and I only need to throw back 1k to cpf, the 1k is a small amount compared to 25k or the actual proceed I got.

However, when I spoke to HDB resale earlier, what I was told was as follows:

It doesn't matter whether you have spent some or all your proceed after you sold your previous flat till the time you purchase the next flat with the 2nd concessionary loan. You still may apply for the said loan. Upon approval and purchase of next flat, you will have to credit the amount of cash 'HALF' of your cash proceed from the sale of the previous flat for payment of next flat. Failing so you will not be able to utilize the 2nd concessionary loan even if HDB has approved it.

So I think the guideline is half of whatever you get from the proceed will need to return to cpf after you buy a next flat with the concessionary loan.

Hope this is accurate and helps. Cheers..
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Old 10-05-2010, 08:50 PM   #13
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my first flat from hdb (walk -in -selection)(hdb loan), current flat (bought from open market)( hdb loan) , now going to apply bto , hdb loan , thru appeal with hdb , but loan amount onli 50k
Hi. It's good they grant your appeal. When I brought my pregnant wife and two little rascals to see my MP, HDB also say they cannot help.

That was sometime before the new rule started.

Anyway the new rule started soon after I appeal to MP. So it's back to square one.

Before that, I stayed at my 4-room flat for about 6 to 7 years when I sold it. The proceed I got was around 60k.

We sold the flat due to hollow debts plus a very annoying neighbor causing nuisance on daily basis.

Now we stay at parents' flat as we can't afford to rent.

My advice to you will be it's best you stick to your present flat until you buy another flat unless you really have no choice. Like my case where I listen to my agent to sell the flat first which resulted in a lot of hassles to us till we settle to our parents' flat and after long time and lots of monies wasted.

Even though, now we are stuck in getting a own flat due to the current situation..
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Old 11-05-2010, 11:41 AM   #14
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Hi. It's good they grant your appeal. When I brought my pregnant wife and two little rascals to see my MP, HDB also say they cannot help.

That was sometime before the new rule started.

Anyway the new rule started soon after I appeal to MP. So it's back to square one.

Before that, I stayed at my 4-room flat for about 6 to 7 years when I sold it. The proceed I got was around 60k.

We sold the flat due to hollow debts plus a very annoying neighbor causing nuisance on daily basis.

Now we stay at parents' flat as we can't afford to rent.

My advice to you will be it's best you stick to your present flat until you buy another flat unless you really have no choice. Like my case where I listen to my agent to sell the flat first which resulted in a lot of hassles to us till we settle to our parents' flat and after long time and lots of monies wasted.

Even though, now we are stuck in getting a own flat due to the current situation..

I agree, never sell for the sake of selling. Ensure everything is planned for including your next purchase before even thinking of selling your property.
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Old 11-05-2010, 11:08 PM   #15
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So I think the guideline is half of whatever you get from the proceed will need to return to cpf after you buy a next flat with the concessionary loan.

Hope this is accurate and helps. Cheers..
Allow me to correct this...is half if yr proceeds is $50K or more....but if is below....example $45K, then you have to fork out $20K...
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