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New Hdb Rule!

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Given the below scenario:

Couple sold first HDB 4 room, bought 5 room a few years ago but did not take up 2nd concessionary interest rate with HDB and instead took bank loan.

Now if couple decided to refinance and take up HDB loan to enjoy their 2nd concessionary interest rate.

Will they have to cough out half the profit for their 5 room in order to take up HDB loan? (made on selling their 4 room)

Edited by chronograph
 

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Given the below scenario:

Couple sold first HDB 4 room, bought 5 room a few years ago but did not take up 2nd concessionary interest rate with HDB and instead took bank loan.

Now if couple decided to refinance and take up HDB loan to enjoy their 2nd concessionary interest rate.

Will they have to cough out half the profit for their 5 room in order to take up HDB loan? (made on selling their 4 room)

Best to ask HDB this question.

 

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Given the below scenario:

Couple sold first HDB 4 room, bought 5 room a few years ago but did not take up 2nd concessionary interest rate with HDB and instead took bank loan.

Now if couple decided to refinance and take up HDB loan to enjoy their 2nd concessionary interest rate.

Will they have to cough out half the profit for their 5 room in order to take up HDB loan? (made on selling their 4 room)

u mean they want to refinance existing 5rm flat from bank loan to HDB loan?

Don't think can.

I remember some time back, read in newspaper.

Some banker or whoever warn those that took up bank loan due to low interest.

Once took up Bank loan , cannot refinance back to HDB loan.

But best is call HDB and ask.

U know, their policy always ..... :sport-smiley-018:

 

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Given the below scenario:

Couple sold first HDB 4 room, bought 5 room a few years ago but did not take up 2nd concessionary interest rate with HDB and instead took bank loan.

Now if couple decided to refinance and take up HDB loan to enjoy their 2nd concessionary interest rate.

Will they have to cough out half the profit for their 5 room in order to take up HDB loan? (made on selling their 4 room)

Realized i posted in the wrong thread. It should have been in "New HDB rule" thread. Mod can help to move?

 

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u mean they want to refinance existing 5rm flat from bank loan to HDB loan?

Don't think can.

I remember some time back, read in newspaper.

Some banker or whoever warn those that took up bank loan due to low interest.

Once took up Bank loan , cannot refinance back to HDB loan.

But best is call HDB and ask.

U know, their policy always ..... :sport-smiley-018:

Confirmed can, my col did that. But with the new rule now, i bet those want to switch have to think twice because of the cash top up.

Edited by chronograph
 

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Confirmed can, my col did that. But with the new rule now, i bet those want to switch have to think twice because of the cash top up.

Oh.. didn't know.

Thanks for the update.

ya, with the new rule, thing might change abit.

 

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Maybe someone who wants to open a "foreign worker domitary" for the 2 IRs? ;) It can be renovated to include more rooms.

No matter how big the Jumbo is the maximum amount of people it can house is 9, anymore it'll be illegal.

 

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HDB revises loan policy

THE Housing Board has removed the upgrading condition for homeowners applying for a secondary concessionary loan from HDB, in a move to help flat owners right-size and exercise financial prudence.

This means the second HDB loan will be made available to all households regardless whether they upgrade, downsize or move to the same flat type.Minister for National Development Mah Bow Tan, who announced this in Parliament on Friday, said the focus is on helping families to right-size their housing choices.

Currently, only households that are upgrading to a bigger flat type are eligible to apply for a second concessionary loan from HDB. This may have advertently encouraged some to upgrade even though it may not be prudent for them to do so, said Mr. Mah.

In a statement, HDB said the change 'will benefit families that need to right-size to smaller flats but do not have sufficient proceeds from the sale of their existing flats'. However, HDB flat buyers who have disposed of their private properties will remain ineligible for a second concessionary loan, it said.

To further encourage financial prudence, Mr Mah also announced that HDB will reduce the quantum of the second concessionary loan, based on the full CPF proceeds and part of the cash proceeds from the sale of the existing or immediate past HDB flats.

For example, if a couple receives $60,000 in CPF refund and $80,000 in cash proceeds from the sale of their flat, they will need to use their CPF money ($60,000) and half of their cash proceeds ($40,000) to pay for their next flat. HDB would then grant them a loan that is $100,000 less. The couple then retains $40,000 in cash proceeds.

HDB said the move to right-size the loan quantum 'will ensure that flat buyers do not take a larger second concessionary loan than necessary, and can help to reduce the likelihood of subsequent mortgage arrears'.

Anyone can advice the above highlighted in bold? Does that means there will be no more levy fees from now onwards?

Edited by davidbslee
 

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Anyone can advice on this in bold? Does that means there will be no more levy fees from now onwards?

Levy fees are still around.

 

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Levy fees are still around.

Thats is a fast reply. Sian liao, I thought levy will be lifted... :rolleyes: Why dun this new rule come early so that I will not be taking bank loan as I am downgraded.

Edited by davidbslee
 

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Thats is a fast reply. Sian liao, I thought levy will be lifted... :rolleyes: Why dun this new rule come early so that I will not be taking bank loan as I am downgraded.

LOL. Isn't it better, I rather take bank loan and keep my cash proceeds

 

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LOL. Isn't it better, I rather take bank loan and keep my cash proceeds

i was told that u cannot even take back full cash proceeds even if u take bank loan,is it true huh ?? :(

 

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i was told that u cannot even take back full cash proceeds even if u take bank loan,is it true huh ?? :(

where got such thing?

 

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No matter how big the Jumbo is the maximum amount of people it can house is 9, anymore it'll be illegal.

True. But some people break the rule to earn more $$$ mah. :P

 

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i was told that u cannot even take back full cash proceeds even if u take bank loan,is it true huh ?? :(

This happens only when you make a loss on your house sale. That means the sale proceeding isn't enough to cover the $$ u owe to the bank and interest u owe to the CPF board.

If u make profit on your house sale (regardless of bank or hdb loan), you will get back the profit in cash after returning $$ u owe to the bank and interest u owe to the CPF board.

Edited by forgotten
 

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