27 Jul 2020
Single owner of resale HDB flat (used CPF and HDB loan), don't expect to fully pay off by retirement age. Is it possible for me to still d/g to smaller HDB (BTO or resale) in 10-15 years time?
Assuming that all regulations by then (10-20 years time) remain the same, is it possible for a single to become 2nd time HDB buyer? Only resale? Or is BTO an option? I don't expect to fully pay off my HDB loan by retirement age, or have the Minimum Sum in full. Can I still downgrade and buy my 2nd HDB? Do I have to pay back the loan in full before selling/downgrade? Do I have to pay back the single and proximity grants? If I don't have the min sum, do I pay for the 2nd flat fully in cash?
There are a few questions so i will try and reply them in order.
Yes you are able to do so. You are allowed to BTO twice, however on purchase and sale of your first HDB, you will have to pay a resale levy. You still can buy the 3rd flat, provided you are above 55 and looking for a smaller two-room, with shorter leases.
Yes you can. So upon sale of your first BTO, the amount that is repayable to CPF is your Princple + Accrued interest (AI). Your principle includes the grants that were disbursed to you if any. Your outstanding loan balance will be repaid on sale, and you would not have an outstanding mortgage after which.
Depending on your scenario, your age, the point of sale and your CPF-OA balance would come into play. If you still have a ways to go, if you are downgrading to your 2nd flat, in most cases you would be able to have the minimum sum in your CPF. If you are buying to upgrade however, due to the increased mortgage needed, you might be short of your CPF funds. In that case, your loan would be smaller, and you can pay for the 2nd flat with CPF funds or cash depending on your preference.
On a separate note, should you need to retire, and you have insufficient funds. The options are always to downgrade or, if your current flat is fully paid up, you can opt for lease buyback scheme (LBS) to draw down on the value of your lease.
I do hope i was able to answer your queries to your satisfcation!
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