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Thread: Questions on getting a new flat or resale flat.

  1. #21
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    Default Re: Questions on getting a new flat or resale flat.

    However, HDB will automatically deduct all your existing CPF OA amount for your downpayment (plus any cash topup if your CPF is not enough to cover the minimum downpayment), and calculate your loan on the balance amount.

    Example, if you had $100k in your CPF, and your new HDB flat costs you $200k, HDB will still deduct $100k from your CPF as downpayment and calculate your monthly loan based on the remaining $100k.

    And if your monthly loan is calculated to be $500, and your monthly CPF contribution is $1k, HDB will only deduct $500 each month from your CPF. The remaining amount stay in your OA.

    Another thing to note, if you are a Singapore citizen and married, and this is your 1st house, there is a CPF subsidy of $30k if you buy resale flat. Also if you buy a resale flat near your parents, the subsidy is $40k. See link
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  2. #22

    Default Re: Questions on getting a new flat or resale flat.

    Quote Originally Posted by kelccm View Post
    However, HDB will automatically deduct all your existing CPF OA amount for your downpayment (plus any cash topup if your CPF is not enough to cover the minimum downpayment), and calculate your loan on the balance amount.

    Example, if you had $100k in your CPF, and your new HDB flat costs you $200k, HDB will still deduct $100k from your CPF as downpayment and calculate your monthly loan based on the remaining $100k.
    I dun think so leh. Is it that? I thought they will wipe out your CPF and then based on your intended loan period and your max eligible minus your needed loan.

    Another thing to note on the 30-40k grant. The grant is not factored into the loan amount. They will give you the grant after they wipe out your CPF. So end of the day, your CPF is not zero, its 30-40k.
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  3. #23
    Senior Member melvin's Avatar
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    Default Re: Questions on getting a new flat or resale flat.

    Quote Originally Posted by andeelym View Post
    I dun think so leh. Is it that? I thought they will wipe out your CPF and then based on your intended loan period and your max eligible minus your needed loan.

    Another thing to note on the 30-40k grant. The grant is not factored into the loan amount. They will give you the grant after they wipe out your CPF. So end of the day, your CPF is not zero, its 30-40k.
    I think this is how they work.

    Lets assume the cpf housing grant is 40k.

    The CPF housing grant is added into the OA account before they wipe out. ie OA have $100k+$40k of housing grant from there they will wipe out.

    Meaning base of kelccm case it will be Purchase Price - (OA+$40k grant) ie. $200k - ($100k+$40k=$140k) = $60k which will be the loan from HDB/Bank.

  4. #24
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    Default Re: Questions on getting a new flat or resale flat.

    The grant works more in subsidsing the flat. So in the case of a $200k flat, the grant will be applied 1st, lowering the price of the flat to $160k, before they wipeout all your OA. So with $100k in you OA, your final loan amount will be $60k (not including any other admin charges or interest). Thus HDB will calculate your monthly loan based on the loan amount of $60k and loan period.

    Do note that if you choose to take up the grant, you will have to return the grant if you want to purchase new flats from HDB in the future. But if you have no intention to buy new flats from HDB in the future, then by all means go for the grant.

    My 1st and current flat is also a resale flat, and I took up the near parents grant. So for my case, the grant of $40k was applied 1st, before both my spouse and my OA were wipeout by HDB for the downpayment.

    If you do not wish to tie down all your existing CPF money into your flat, you may want to invest a portion into some form of CPF approved investments. This way, HDB will not be able to totally wipeout all your OA money.
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  5. #25
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    Default Re: Questions on getting a new flat or resale flat.

    Quote Originally Posted by kelccm View Post
    The grant works more in subsidsing the flat. So in the case of a $200k flat, the grant will be applied 1st, lowering the price of the flat to $160k, before they wipeout all your OA. So with $100k in you OA, your final loan amount will be $60k (not including any other admin charges or interest). Thus HDB will calculate your monthly loan based on the loan amount of $60k and loan period.

    Do note that if you choose to take up the grant, you will have to return the grant if you want to purchase new flats from HDB in the future. But if you have no intention to buy new flats from HDB in the future, then by all means go for the grant.

    My 1st and current flat is also a resale flat, and I took up the near parents grant. So for my case, the grant of $40k was applied 1st, before both my spouse and my OA were wipeout by HDB for the downpayment.

    If you do not wish to tie down all your existing CPF money into your flat, you may want to invest a portion into some form of CPF approved investments. This way, HDB will not be able to totally wipeout all your OA money.
    Bro the senario i mention in my last post is excatly what they do when using CPF Housing Grant! As it come from CPF. It will not disturb the purchase price but increase ur OA before being wipe out!

    The grant is for u la... no need to return why so many people thought the grant need to return lei! Given means given la....

    U will need to pay a resale levy if u are buying a 2nd subsidised flat from HDB, ie buying direct from HDB.

    The Levy are as follows:
    2-room $15,000
    3-room $30,000
    4-room $40,000
    5-room $45,000
    Executive Flat $50,000

    More on Resale levy


    Last edited by melvin; 17th December 2009 at 02:39 PM.

  6. #26
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    Default Re: Questions on getting a new flat or resale flat.

    What happen if buying resale 5 room flat and given 30k grant, when want to buy new flat from HDB, need to pay resale levy 45K back? End up loss by 15K?
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  7. #27
    Senior Member melvin's Avatar
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    Default Re: Questions on getting a new flat or resale flat.

    Quote Originally Posted by zcf View Post
    What happen if buying resale 5 room flat and given 30k grant, when want to buy new flat from HDB, need to pay resale levy 45K back? End up loss by 15K?
    Normally Housing Grant is Housing Grant, Resale levy is Resale levy, they dun mix snice u want to put it this way, yeah u lost $15k!

    Housing Grant is a one time thing, Resale levy is actually applicable if u sell ur flat even if u buy from open market but they allow u to 'push back' till u buy another subsidise flat ie another new flat direct from HDB.

    During the HDB appt the officer will ask the seller want to pay or not normally i will tell them to 'push back' till they buy a new flat from the HDB.

  8. #28
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    Default Re: Questions on getting a new flat or resale flat.

    Things are getting clearer... Yes, my family's planning to be SG citizens if ICA would allow us to do so next year, but by then, my OA wouldn't that big yet so a lot of the funds will be from our own pocket + the grant.. We have no intentions of buying another actually, but just for discussion's sake, if I plan to get another HDB from the resale market in the future, will I still need to pay the Resale Levy or does the RL apply only to HDB new units? Thanks.

  9. #29
    Senior Member melvin's Avatar
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    Default Re: Questions on getting a new flat or resale flat.

    Quote Originally Posted by theveed View Post
    Things are getting clearer... Yes, my family's planning to be SG citizens if ICA would allow us to do so next year, but by then, my OA wouldn't that big yet so a lot of the funds will be from our own pocket + the grant.. We have no intentions of buying another actually, but just for discussion's sake, if I plan to get another HDB from the resale market in the future, will I still need to pay the Resale Levy or does the RL apply only to HDB new units? Thanks.
    In short no need Resale levy will be payable if u buy a new flat direct from HDB.

  10. #30
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    Default Re: Questions on getting a new flat or resale flat.

    Quote Originally Posted by melvin View Post
    In short no need Resale levy will be payable if u buy a new flat direct from HDB.
    You mean if a person own a HDB flat already, he still can buy another HDB flat (new or resale) without selling the existing one?
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  11. #31
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    Default Re: Questions on getting a new flat or resale flat.

    Quote Originally Posted by melvin View Post
    Bro the senario i mention in my last post is excatly what they do when using CPF Housing Grant! As it come from CPF. It will not disturb the purchase price but increase ur OA before being wipe out!

    The grant is for u la... no need to return why so many people thought the grant need to return lei! Given means given la....

    U will need to pay a resale levy if u are buying a 2nd subsidised flat from HDB, ie buying direct from HDB.

    The Levy are as follows:
    2-room $15,000
    3-room $30,000
    4-room $40,000
    5-room $45,000
    Executive Flat $50,000

    More on Resale levy


    To me, it is almost the same as paying back the grant But you are right. The correct term is resale levy. Got my flat for almost 9 years liao, forgot all the terms already.

    From what I understand, if you buy another resale flat, resale levy will not be applied, but if you buy a subsidised flat from HDB (read new flats), the resale levy will apply.
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  12. #32
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    Default Re: Questions on getting a new flat or resale flat.

    Quote Originally Posted by theveed View Post
    Things are getting clearer... Yes, my family's planning to be SG citizens if ICA would allow us to do so next year, but by then, my OA wouldn't that big yet so a lot of the funds will be from our own pocket + the grant.. We have no intentions of buying another actually, but just for discussion's sake, if I plan to get another HDB from the resale market in the future, will I still need to pay the Resale Levy or does the RL apply only to HDB new units? Thanks.
    To HDB, all new flats are subsidised.

    However it seems that new flats price are getting higher and higher, making the term subsidise flat a joke. But that will be another arguement.
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  13. #33
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    Default Re: Questions on getting a new flat or resale flat.

    Quote Originally Posted by melvin View Post
    In short no need Resale levy will be payable if u buy a new flat direct from HDB.
    Sorry left out 3 words.
    In short no need Resale levy will be payable unless if u buy a new flat direct from HDB or DBSS.
    Last edited by melvin; 18th December 2009 at 11:31 AM.

  14. #34
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    Default Re: Questions on getting a new flat or resale flat.

    Quote Originally Posted by zcf View Post
    You mean if a person own a HDB flat already, he still can buy another HDB flat (new or resale) without selling the existing one?
    No each person/couple is only entitled to own one HDB. Need to sell present one if were to purchase a new one/resale one!

  15. #35
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    Default Re: Questions on getting a new flat or resale flat.

    Quote Originally Posted by kelccm View Post
    To me, it is almost the same as paying back the grant But you are right. The correct term is resale levy. Got my flat for almost 9 years liao, forgot all the terms already.

    From what I understand, if you buy another resale flat, resale levy will not be applied, but if you buy a subsidised flat from HDB (read new flats), the resale levy will apply.
    Yeah u can put it this way for the resale levy.
    The actually case is that as long as u sell resale levy is applicable but sellers can chose not to pay till they got a new/subsdise flat ie from HDB or when applying for DBSS. ( Only the recent DBSS-The Peak@Toa payoh no need to pay resale levy dun ask me why cos HDB said so! )

    Why i keep saying resale levy is applicable cos everytime my sellers sell and during the appt. As a formality HDB officer will ask them want to pay or not but normally me and/or officer will tell the seller wait till u buy a new house then pay if not just leave it alone!

  16. #36
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    Default Re: Questions on getting a new flat or resale flat.

    Quote Originally Posted by melvin View Post
    Yeah u can put it this way for the resale levy.
    The actually case is that as long as u sell resale levy is applicable but sellers can chose not to pay till they got a new/subsdise flat ie from HDB or when applying for DBSS. ( Only the recent DBSS-The Peak@Toa payoh no need to pay resale levy dun ask me why cos HDB said so! )

    Why i keep saying resale levy is applicable cos everytime my sellers sell and during the appt. As a formality HDB officer will ask them want to pay or not but normally me and/or officer will tell the seller wait till u buy a new house then pay if not just leave it alone!
    Bro, you working as a property agent ah??
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  17. #37
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    Default Re: Questions on getting a new flat or resale flat.

    Quote Originally Posted by kelccm View Post
    Bro, you working as a property agent ah??
    SsHh... Wait i kena sumon! check my sig u will know!

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