Second HDB concessionary loan – Singapore HDB flat for rent
Singapore HDB flat for rent – To further encourage financial prudence, HDB had revised the condition of second HDB concessionary loan. With effect from date of application of HLE on or after 5/3/2010, a second concessionary loan will be made available to all eligible buyers regardless whether they upgrade, downsize or purchase the same flat type. This will benefit families that need to downsize to smaller flat to take HDB concessionary loan.
However, with this revision on or after 5/3/2010, HDB will require the buyer’s balance sale proceeds (after keeping 50% of sale proceeds or $25K whichever is higher, from the sale of his last HDB flat) and all the buyer’s balance CPF in his Ordinary Account (including CPF refund and after paying for legal fees and stamp fee) to be taken into consideration in determining the max 2nd HDB loan eligible.
For example:
A Buyer wants to take a 2nd HDB loan for the purchase of a HDB 3rm flat at $300K. The valuation is also at $300K. The sale proceeds from the sale of his last flat was $100K and his balance CPF (including CPF refund and after paying for legal fees and stamp fee) is $120K. The calculation for the max 2nd HDB loan eligible (from 5/3/2010) is as follows:
| Valuation | = $300K |
| Less 50% of sale proceeds (in cash) | = $50K |
| Less balance CPF | = $120K |
| Max 2nd HDB loan eligible (from 5/3/2010) | = $130K |
(Whether the buyer can get $130K loan is also subject to credit assessment)
To qualify for second HDB concessionary loan, the last property sold must not be a private residential property regardless of time frame.
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