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Real Estate > Lesson 16 > Flashcards

Lesson 16 Flashcards

1
Q

What is the purpose of the resale levy?

A

The resale levy is meant to reduce the housing subsidy on buyers’ second subsidized flat.

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2
Q

In what situations is the resale levy payable?

A

The resale levy is payable when selling a first subsidized flat and buying:
1. A second subsidized flat from HDB
2. Taking over ownership of another subsidized HDB flat
3, An Executive Condominium (EC) from a developer where the land sale was launched on or after 9 December 2013.

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3
Q

When is the resale levy not payable?

A

The resale levy is not payable when selling a first subsidized flat and buying:
1. Design, Build and Sell Scheme (DBSS) flat from a developer
2. EC from a developer, where the land sale was launched before 9 December 2013
3. HDB resale flat
4. Private residential property

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4
Q

What is the resale levy amount for a 2-room flat?

A

Family: $15,000
Single: $7,500

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5
Q

What is the resale levy amount for a 3-room flat?

A

Family: $30,000
Single: $15,000

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6
Q

What is the resale levy amount for a 4-room flat?

A

Family: $40,000
Single: $20,000

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7
Q

What is the resale levy amount for a 5-room flat?

A

Family: $45,000
Single: $22,500

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8
Q

What is the resale levy amount for a 3Gen flat?

A

Family: $45,000
Not applicable for Single.

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9
Q

What is the resale levy amount for an Executive flat?

A

Family: $50,000
Single: $25,000.

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10
Q

What is the resale levy amount for an Executive Condominium?

A

Family: $55,000
Not applicable for Single.

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11
Q

How often are the ethnic proportions and SPR quotas updated?

A

They are updated on the 1st of every month.

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12
Q

What is the requirement for a household to meet the Ethnic Integration Policy (EIP) if there is a Singapore Citizen (SC)?

A

At least 1 Singapore Citizen must be listed as a buyer.

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13
Q

What is the requirement for a Malaysian SPR household under the EIP?

A

At least 1 Malaysian SPR must be listed as a buyer, and no SC should be listed as a buyer.

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14
Q

What is the requirement for a Non-Malaysian SPR household under the EIP?

A

All buyers must be non-Malaysian SPRs, meaning no SCs or Malaysian SPRs can be listed as buyers.

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15
Q

What is the ethnic limit for Chinese households under the EIP?

A

84% for neighbourhoods and 87% for blocks.

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16
Q

What is the ethnic limit for Malay households under the EIP?

A

22% for neighbourhoods and 25% for blocks.

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17
Q

What is the ethnic limit for Indian and Other households under the EIP?

A

12% for neighbourhoods and 15% for blocks.

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18
Q

What is the quota for Non-Malaysian SPR households under the EIP?

A

5% for neighbourhoods and 8% for blocks.

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19
Q

What are the three upgrading programmes under the HDB Upgrading Programmes?

A
  1. Lift Upgrading Programme (LUP)
  2. Home Improvement Programme (HIP)
  3. Neighbourhood Renewal Programme (NRP)
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20
Q

What is the voting requirement for the Lift Upgrading Programme (LUP) and Home Improvement Programme (HIP)?

A

A minimum of 75% votes is required.

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21
Q

What voting support is needed for the Neighbourhood Renewal Programme (NRP)?

A

A minimum of 75% support is required.

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22
Q

Who is responsible for paying the upgrading costs when HDB issues the invoice?

A

The owner of the flat at the time of the invoice issuance must pay the upgrading cost.

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23
Q

What happens if the invoice is rendered before legal completion?

A

If the invoice is rendered before legal completion, the seller pays the upgrading cost.

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24
Q

What happens if the invoice is rendered after legal completion?

A

If the invoice is rendered after legal completion, the buyer pays the upgrading cost.

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25
Q

What is the purpose of the Selective Enbloc Redevelopment Scheme (SERS)?

A

SERS aims to redevelop selected older estates for better use.

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26
Q

What does HDB offer to flat owners chosen for SERS?

A

HDB will buy back the flat at its market value and offer a new location with a replacement flat.

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27
Q

What type of lease is offered for the replacement flat under SERS?

A

A fresh 99-year lease is offered, or flat owners aged 45 years and above can choose a 3-room or larger flat on a 50-year lease.

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28
Q

What grant is available for Singapore Citizens under the SERS?

A

A SERS Grant of $30,000 is available for Singapore Citizens only.

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29
Q

What is waived for flat owners under the SERS?

A

The resale levy is waived for flat owners under the SERS.

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30
Q

What is the eligibility criteria for purchasing a standard resale flat?

A

There is no income criteria for purchasing a standard resale flat.

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31
Q

What is the income ceiling for purchasing a Plus/Prime Resale Flat?

A

The income ceiling is $14,000.

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32
Q

What is required if an applicant or listed occupiers own private residential property when purchasing a standard resale flat?

A

They must sell the properties and wait for 15 months before purchasing a standard resale flat.

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33
Q

What are the citizenship requirements for the Public Scheme?

A

The applicant must be a Singapore Citizen (SC) for new flats or a Singapore Permanent Resident (SPR).

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34
Q

What does the family nucleus requirement entail for the Public Scheme?

A

The family nucleus must form a family unit, such as:

Spouse and children (if any)
Parents and siblings (if any)
Children under legal custody, care, and control (for widowed, divorced, or separated persons).

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35
Q

What are the options available under the Conversion Scheme?

A

Option 1: Buying 2 adjoining units of 3-room or smaller HDB resale flats.
Option 2: Buying an adjoining 3-room or smaller HDB resale flat.

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36
Q

What special condition applies to Option 2 of the Conversion Scheme?

A

The buyer must be the owner of one of the 3-room or smaller flats.

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37
Q

What is the waiting period for SPR households before they can buy a resale flat?

A

SPR households must wait for 3 years from the date of obtaining SPR status before they can buy a resale flat.

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38
Q

What is the citizenship requirement for the Fiancé / Fiancée Scheme?

A

The applicant must be a Singapore Citizen (SC) for new flats or a Singapore Permanent Resident (SPR).

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39
Q

What is the minimum age requirement to apply under the Fiancé / Fiancée Scheme?

A

Applicants must be at least 21 years of age.

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40
Q

What is the family nucleus requirement for the Fiancé / Fiancée Scheme?

A

The family nucleus must include at least 1 other SC or SPR, and the fiancée must be a co-applicant or occupant.

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41
Q

What special condition must be met regarding marriage for the Fiancé / Fiancée Scheme?

A

The applicant must register their marriage and submit the marriage certificate to HDB on or before the date of taking possession of the flat if taking any housing grants. If not taking housing grants, the certificate must be submitted within 3 months from the date of taking possession.

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42
Q

What is the definition of a “Single” applicant under the Single Singapore Citizen Scheme?

A

A single applicant can be:

Unmarried person
Widowed person
Orphan
Divorcée

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43
Q

What is the minimum age requirement for unmarried or divorced applicants under the Single Singapore Citizen Scheme?

A

Applicants must be at least 35 years old.

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44
Q

What is the minimum age requirement for widowed or orphaned applicants under the Single Singapore Citizen Scheme?

A

Applicants must be at least 21 years old.

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45
Q

What special condition applies to orphans under the Single Singapore Citizen Scheme?

A

At least one of their deceased parents must be a SC or SPR. If the orphan is below 35 years old, they must not have another sibling under 35 years old buying/owning another flat under the Orphans Scheme, Single Singapore Citizen Scheme, or Joint Singles Scheme.

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46
Q

What is the citizenship requirement for the Orphan Scheme?

A

The applicant must be a Singapore Citizen (SC).

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47
Q

What age requirement applies to the Orphan Scheme?

A

The age requirements are similar to those under the Single Singapore Citizen Scheme.

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48
Q

What special conditions apply under the Orphan Scheme?

A

The same special conditions that apply under the Single Singapore Citizen Scheme apply here as well.

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49
Q

What can eligible first-timer singles apply for under the new classification?

A

They can apply for:

2-room Flexi BTO flats in all locations across Standard, Plus, and Prime housing projects.

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50
Q

What types of flats can eligible first-timer singles buy in the resale market?

A

They can buy:

A Standard or Plus flat of any size (except 3Gen flats).
A 2-room Flexi Prime flat.

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51
Q

What is the citizenship requirement for the Joint Single Scheme?

A

Applicants must be Singapore Citizens (SC).

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52
Q

What is the age requirement for unmarried or divorced applicants in the Joint Single Scheme?

A

Applicants must be at least 35 years old.

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53
Q

What is the age requirement for widowed or orphaned applicants in the Joint Single Scheme?

A

Applicants must be at least 21 years old.

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54
Q

What is the maximum number of single applicants allowed under the Joint Single Scheme?

A

A maximum of 4 single applicants is allowed.

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55
Q

What is required for an applicant under the Non-Citizen Spouse Scheme regarding citizenship and age?

A

The applicant must be a Singapore Citizen (SC) and at least 21 years old.

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56
Q

What must a SC applicant do when applying for a flat while having a foreign (non-SC/SPR) spouse?

A

The applicant must add the non-citizen spouse as an occupier in the application.

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57
Q

What is the special condition for buyers between 21 and 34 years old under the Non-Citizen Spouse Scheme?

A

The spouse must have a valid Long Term Visit Pass or Work Pass for a minimum of 6 months.

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58
Q

What is the special condition for buyers who are 35 years old or older under the Non-Citizen Spouse Scheme?

A

The spouse must have a valid Visit Pass or Work Pass.

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59
Q

What is required for an applicant under the Non-Citizen Family Scheme?

A

The applicant must be a Singapore Citizen (SC) and at least 21 years old.

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60
Q

What must a family nucleus include under the Non-Citizen Family Scheme?

A

At least one must form a family nucleus with:

Parents and siblings (if any) or
Children under legal custody, care, and control (for widowed, divorced, or separated persons).

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61
Q

What is required regarding the status of family members under the Non-Citizen Family Scheme?

A

At least one non-citizen parent or child must hold a valid Long Term Visit Pass or Work Pass for a minimum of 6 months.

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62
Q

What is the starting point for calculating the Minimum Occupation Period (MOP)?

A

The MOP is calculated from the date the sellers collect the flat keys.

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63
Q

What periods are excluded from the MOP calculation?

A

Any periods during which the seller does not occupy the flat, such as:

The whole flat is rented out
Extension period after completion (maximum 3 months)
Any infringement of the flat lease.

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64
Q

What is the MOP for flats purchased from HDB (with or without CPF Housing Grant)?

A

There is no MOP for these flats.

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65
Q

What is the MOP for resale flats purchased from the open market (with or without CPF Housing Grant)?

A

The MOP is 5 years.

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66
Q

What is the MOP for Design, Build and Sell Scheme (DBSS) flats purchased from a developer?

A

The MOP is 5 years.

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67
Q

What is the MOP for flats purchased under the Selective En bloc Redevelopment Scheme (SERS)?

A

The MOP is 5 years from the date of occupation/key collection.

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68
Q

What is the MOP for flats under the Fresh Start Housing Scheme?

A

The MOP is 20 years.

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69
Q

What is the MOP for Executive Condominiums (EC) purchased from a developer?

A

The MOP is 5 years.

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70
Q

What is the MOP for flats purchased under the Selective En bloc Redevelopment Scheme (SERS) with Portable SERS Rehousing Benefits?

A

The MOP is 5 years from the date of key collection.

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71
Q

What must sellers do upon selling a Prime Flat?

A

Sellers have to return a percentage of the resale price to HDB as a means to recover the additional subsidies.

72
Q

How is the subsidy recovery percentage determined?

A

It is commensurate with the extent of the initial additional subsidy provided.

73
Q

Can owners rent out the whole flat of a Prime Flat during the MOP?

A

No, renting out the whole flat of a Prime Flat is not allowed.

74
Q

Can owners rent out spare rooms in a Prime Flat?

A

Yes, owners can rent out spare rooms in a Prime Flat.

75
Q

What is the income ceiling for Prime Resale Flats?

A

The income ceiling is set at $14,000.

76
Q

Is there an income ceiling for Typical Resale Flats?

A

No, there is no income ceiling applicable for Typical Resale Flats.

77
Q

What is the private property ownership requirement for Prime Resale Flats?

A

Applicants must not own or have an interest in a private property and must not have disposed of any in the last 30 months.

78
Q

What is the private property ownership requirement for Typical Resale Flats?

A

Ownership is allowed, but the applicant must dispose of any private property within 15 months of buying the resale flat.

79
Q

What is the first step a seller must take in the resale process?

A

The seller must register their intent to sell.

80
Q

What does the buyer need to do in the first step of the resale process?

A

The buyer needs to apply for the HFE letter.

81
Q

What is the second step in the resale process?

A

The seller grants the Option To Purchase (OTP) and the buyer exercises the OTP.

82
Q

In the third step, where must the resale application be submitted?

A

The resale application must be submitted through the HDB Flat Portal.

83
Q

How long does it take to process the resale application?

A

It takes up to 8 weeks to process the application.

84
Q

What happens in the fourth step of the resale process?

A

The resale completion occurs, which includes:

Apportioning property tax
The buyer signing the mortgage agreement (for HDB Loan).

85
Q

What is the purpose of registering the Intent to Sell?

A

The purposes include:

Confirming eligibility to sell the flat instantaneously.
Providing information about EIP/SPR quota for the flat, status of upgrading, billing of upgrading costs, and recent transacted prices of nearby flats.

86
Q

How long is the registration for Intent to Sell valid?

A

The registration is valid for 12 months.

87
Q

What must a flat owner do upon expiry of the Intent to Sell registration?

A

The flat owner will need to re-apply for an Intent to Sell upon expiry.

88
Q

What details does the HDB Flat Portal show for flats offered for sale?

A
  1. Location – New BTO Flats
  2. Indicative prices
  3. Preliminary designs
  4. The number of units of flats offered
89
Q

What is the purpose of the HDB Flat Eligibility letter?

A

It assesses buyers’ eligibility to purchase an HDB resale flat and provides a holistic understanding of their housing and financing options.

90
Q

What is the duration of the first stage of the HDB Flat Eligibility process?

A

The first stage is valid for 1 month.

91
Q

How long is the HDB Flat Eligibility valid?

A

The HDB Flat Eligibility is valid for 9 months.

92
Q

When entering into the OTP, what must sellers and buyers declare?

A

They must declare the true resale price of the flat to HDB.

93
Q

What are the penalties for false declarations regarding the resale price?

A

The penalty includes a fine and/or up to 3 years’ imprisonment.

94
Q

What agreements are sellers and buyers prohibited from entering into?

A

They shall not enter into any supplementary or other agreements.

95
Q

What is the penalty for providing false information in the OTP?

A

The penalty includes a fine of up to $5,000 and/or up to 6 months’ imprisonment.

96
Q

Under what conditions is the OTP contract considered null and void?

A

If it is made:
a) in a different contract format (not using HDB OTP)
b) with additions, deletions, or variations on the clauses.

97
Q

What is the maximum option fee when entering into the OTP?

A

The option fee cannot exceed $1,000.

98
Q

What is the maximum deposit amount (including the option fee) allowed?

A

The total amount cannot exceed $5,000.

99
Q

How long is the option period for the OTP?

A

The option period is 21 calendar days from the option date (including Saturdays, Sundays, and Public Holidays).

100
Q

Who must sign the OTP as a witness?

A

A salesperson must sign on the OTP as a witness.

101
Q

What does Clause 4 of the OTP address?

A

Clause 4 pertains to the request for valuation; buyers apply for a valuation, and the seller must allow the valuer to assess the value of the flat within 3 working days after the application.

102
Q

How long does it take for the valuation to be available in the HDB Resale Portal?

A

The valuation is available in the HDB Resale Portal within 10 working days.

103
Q

What does Clause 12 of the OTP require?

A

The seller and buyer must jointly apply to HDB for approval for the sale and purchase of the flat within a specified number of calendar days after the exercise of the option.

104
Q

What does Clause 13 outline regarding completion?

A

Clause 13 states there is an 8-week completion timeline, with a maximum extension request by the seller of 3 months, provided the seller has committed to buying a completed housing unit in Singapore.

105
Q

What must the seller not be doing at the time of resale application according to Clause 13?

A

The seller must not be subletting the whole flat at the time of the resale application.

106
Q

What must the buyer do if the seller requires a longer time to vacate the flat?

A

The seller must inform the HDB resale officer to schedule the completion appointment for a later date.

107
Q

What happens if the seller requires a late completion?

A

A Late Completion Penalty may apply as per the Conditions of Sale (C.O.S) 2020.

108
Q

What inspection will occur prior to the resale completion appointment?

A

The resale flat will be inspected by HDB’s branch officers to check for unauthorized renovation works that may affect the structural stability of the flat/building.

109
Q

What must sellers do with unauthorized works before the completion of the resale transaction?

A

Sellers must remove any unauthorized works before the completion of the resale transaction.

110
Q

What is the maximum number of tenants allowed for a 2-room flat?

A

The maximum number of tenants allowed is 4.

111
Q

What is the maximum number of tenants allowed for a 3-room flat?

A

The maximum number of tenants allowed is 6.

112
Q

What is the maximum number of tenants allowed for a 4-room or bigger flat?

A

The maximum number of tenants allowed is 8.

113
Q

Who is allowed to sublet their HDB flat?

A

Singapore Citizens and their households are allowed to sublet their flat.

114
Q

What must be obtained before subletting a flat?

A

HDB’s approval must be obtained, and a letter of approval from HDB is required.

115
Q

What is the Minimum Occupation Period (MOP) requirement for subletting?

A

Flat owners must fulfill a 5-year MOP for subletting if the flats were purchased on or after 30th August 2010.

116
Q

What is the non-citizen quota that applies to the subletting of flats?

A

The non-citizen quota refers to Singapore Permanent Residents (SPRs) and foreigners.

117
Q

If tenants include one or more non-Malaysian individuals, what applies?

A

This situation is subject to the Non-Citizen Subletting Quota.

118
Q

Is the non-citizen quota applicable to subletting of bedrooms?

A

No, the non-citizen quota is not applicable to subletting bedrooms.

119
Q

What is the quota ratio for non-citizen tenants at the neighbourhood level?

A

The ratio is 8% at the neighbourhood level.

120
Q

What is the quota ratio for non-citizen tenants at the block level?

A

The ratio is 11% at the block level.

121
Q

What happens if the quota is reached at the neighbourhood or block level?

A

No subletting of the flat to non-Malaysian tenants is allowed, and subletting can only be done to Singapore Citizens or Malaysians.

122
Q

What is the maximum number of bedrooms allowed to be rented out in a 3-room flat?

A

1 bedroom can be rented out.

123
Q

What is the maximum number of bedrooms allowed to be rented out in a 4-room or bigger flat?

A

Up to 2 bedrooms can be rented out.

124
Q

Who is allowed to sublet a room in HDB flats?

A

Only Singapore Citizen or Permanent Resident (PR) households are allowed to sublet a room.

125
Q

Is there a Minimum Occupation Period (M.O.P) requirement for subletting a room in a 3-room flat or bigger?

A

No, there is no M.O.P requirement.

126
Q

Can owners of 1 or 2-room flats rent out their bedrooms?

A

No, owners of 1 or 2-room flats are not allowed to rent out their bedrooms.

127
Q

What must owners notify HDB about within 7 days?

A

Owners must notify HDB regarding the following:

Renewal of tenancy
Updates on new tenant particulars
Removal of tenants
Termination of subletting

128
Q

What is a requirement for owners while subletting rooms?

A

Owners must continue to live in the flat during the subletting period.

129
Q

What could happen if owners do not comply with the requirement to live in the flat during subletting?

A

HDB may take appropriate action under the HDB Act (H&D Act).

130
Q

Who can rent HDB flats as tenants?

A

Singapore Citizens or Singapore Permanent Residents
Non-citizens with a valid pass, such as:
- Employment Pass
- S Pass
- Work Permit
- Student Pass
- Dependant Pass
- Long-Term Social Visit Pass

131
Q

What is the minimum validity period required for a non-citizen pass to rent an HDB flat?

A

The validity period of the pass must be at least 6 months at the date of subletting application.

132
Q

Can tourists rent HDB flats?

A

No, tourists are not allowed as tenants of HDB flats.

133
Q

Who cannot be a tenant of an HDB flat?

A
  1. Existing owners of an Executive Condominium who have not met the 5-year MOP
  2. Existing flat owners or tenants of other HDB flats, with exceptions for:
    - Divorced/legally separated individuals (only one party can be a subtenant)
    - Those eligible to sublet their whole HDB flat (must sublet their own flat within 1 month after renting another flat)
134
Q

Are non-Malaysians with Work Permits allowed to rent whole flats in certain industries?

A

No, industries like Construction, Marine, and Process do not allow whole flat & room rental for non-Malaysian Work Permit holders.

135
Q

What is the minimum lease period for renting out HDB flats or rooms?

A

The minimum lease period is 6 months, prohibiting short-term rentals.

136
Q

What is the maximum subletting period for non-Malaysian or non-citizen tenants?

A

2 years.

137
Q

What is the maximum subletting period for Singapore Citizens or Malaysian tenants?

A

3 years.

138
Q

What responsibilities do flat owners have when subletting?

A
  • Ensure only authorized tenants reside in the flat
  • Verify the number of tenants does not exceed the allowed maximum
  • Ensure tenants use the flat for residential purposes only and do not further sublet
  • Confirm tenants legally reside in Singapore and adhere to HDB regulations
  • Flat owners are responsible for any tenant-related infringements.
139
Q

When must buyers have a valid valuation report to purchase a flat?

A

Buyers need a valid valuation report if they are using:

An HDB Concessionary Loan
A Bank Loan
CPF Funds

140
Q

What financing limits does a flat valuation determine?

A

CPF Usage
Housing Loans
Cash Payment

141
Q

When should buyers request a valuation?

A

After sellers have granted the buyers an Option to Purchase (OTP).

142
Q

How and when must the valuation request be submitted?

A

It must be submitted via the HDB website as a “Request for Value” by the next working day after obtaining the OTP.

143
Q

How long is a valuation report valid?

A

A valuation report is valid for 3 months from the date of the report.

144
Q

What happens if buyers decide not to exercise the OTP within the valuation report period?

A

The OTP will lapse.

145
Q

What is required to apply for an HDB Concessionary Loan?

A

Buyers must apply for an HDB Flat Eligibility (HFE) Letter, which is valid for 9 months.

146
Q

What is the minimum remaining lease required to qualify for an HDB Concessionary Loan?

A

The remaining lease of the flat must be at least 20 years.

147
Q

What types of flats are eligible for an HDB Concessionary Loan?

A

New Flat and Resale Flat.

148
Q

Which types of flats are not eligible for an HDB Concessionary Loan?

A

2-room flexi-lease flat
DBSS flats
Executive Condominiums

149
Q

What determines the loan tenure for an HDB Concessionary Loan?

A

The loan tenure will be the shortest of:

25 years
65 years minus the average age of the buyers
Balance lease at the point of purchase minus 20 years

150
Q

On what basis is the borrower’s eligible loan amount for the HDB Concessionary Loan computed?

A

It is computed based on a 3% interest rate floor.

151
Q

How is the actual HDB Concessionary interest rate determined?

A

The actual interest rate is pegged at 0.1% above the CPF Ordinary Account (OA) interest rate.

152
Q

What is the Loan to Value (LTV) ratio?

A

The LTV ratio is based on the lower of the valuation or purchase price, subject to remaining lease and the age of the youngest buyer up to 95 years.

153
Q

What happens if the remaining lease does not cover the youngest buyer to the age of 95?

A

The LTV will be pro-rated

154
Q

What is the maximum LTV effective from 30 September 2022?

A

The maximum LTV is 80%.

155
Q

What is the Mortgage Servicing Ratio (MSR)?

A

It is the assessment of eligibility to obtain a mortgage loan, which sets the maximum loan repayment percentage based on the borrower’s gross monthly income.

156
Q

To what types of loans does the MSR apply?

A

The MSR applies to both HDB and bank loans.

157
Q

How is the MSR calculated?

A

MSR = (Monthly Total Mortgage Repayment / Gross Monthly Income) × 100%
Max MSR: 30% of Household Income.

158
Q

Who must be part of the household to be eligible for HFE?

A

At least one member of the household must be a Singapore Citizen.

159
Q

How many HDB housing loans must the applicant not have taken previously to qualify for HFE?

A

Applicants must not have previously taken 2 or more HDB housing loans.

160
Q

What is the monthly income ceiling for a single applicant?

A

The monthly income ceiling for a single applicant is $7,000.

161
Q

What is the monthly income ceiling for a family applying for HFE?

A

The monthly income ceiling for a family is $14,000, and for an extended family, it is $21,000.

162
Q

What property ownership condition must applicants meet before applying for an HFE letter?

A

Applicants must not own a private residential property sold within 30 months before the date of application for an HFE letter.

163
Q

How many commercial or industrial properties can an applicant own to still be eligible for HFE?

A

Applicants must not own more than 1 market, hawker stall, commercial, or industrial property.

164
Q

What condition applies if a borrower owns 1 commercial or industrial property?

A

The borrower must be operating the business on the property and have no other sources of income.

165
Q

What happens to all CPF Ordinary Account (OA) money when purchasing a flat with a HDB loan?

A

All CPF OA money must be used to purchase the flat before the HDB loan is granted for the remaining reduced loan quantum.

166
Q

How much can a buyer choose to keep in their CPF Ordinary Account (OA) when purchasing a flat?

A

The buyer can choose to keep a maximum of $20,000.

167
Q

How is the loan quantum for a second HDB concessionary housing loan reduced?

A

It is reduced by the full CPF proceeds and part of the cash proceeds from the sale of the existing or previously sold HDB flat.

168
Q

What can flat buyers generally keep from the proceeds when determining their second HDB concessionary loan?

A

Buyers can keep the greater of:
i. $25,000, or
ii. 50% of the cash proceeds.

169
Q

What does the Enhanced Contra Facility (ECF) allow flat owners to do?

A

It allows flat owners to sell their existing HDB flat and simultaneously buy another resale HDB flat using the sale proceeds and refunded CPF monies.

170
Q

Can refunded CPF monies be used for stamp duty and conveyancing fees under ECF?

A

No, the refunded CPF monies cannot be used to pay for stamp duty and conveyancing fees.

171
Q

Who jointly implements the Enhanced Contra Facility (ECF)?

A

The ECF is jointly implemented by the CPF Board and HDB.

172
Q

What are the benefits of using the Enhanced Contra Facility (ECF)?

A

It helps reduce:

Cash outlay needed for purchasing the next resale HDB flat.
Mortgage loan amount needed and subsequent monthly repayments.

173
Q

What does the Contra Payment Facility do for resale flat owners purchasing new HDB flats?

A

It helps to:

Reduce the cash outlay needed for the new HDB flat.
Reduce the mortgage loan amount needed and subsequent monthly repayments.
Allow collection of keys to the new flat and renovations while selling the existing flat.

174
Q

What additional benefit does the Contra Payment Facility offer to resale flat owners?

A

It grants resale flat owners an additional loan on top of their housing loan after all available CPF balance is used for the flat purchase.

175
Q

What scenario does the Contra Payment Facility address for flat owners?

A

It helps to make up the shortfall in funds if flat owners are waiting for sales proceeds from the sale of their existing flat to cover the purchase of a new flat.

Real Estate (19 decks)

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