Anonymous

30 Jan 2021

∙

Upgrade from HDB 4 room bto to 5 room resale?

May I know roughly what much cash I would need to fork out to upgrade from 4 room bto valued at 400k to 5 room resale 700k
Also roughly what much the monthly mortgage payment would be
I read many articles about upgrading but still am clueless as ever

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Zac

30 Jan 2021

Noob at Idiots Invest

Not a housing expert. My understanding: after selling your BTO, whatever mortgage remaining on your current BTO will be paid of first. Then, you can put the remaining money into your new resale flat and take out a mortgage for the remaining sum. However, if your resale is valued at 650k and you bought it at 700k, you will have to pay 50k up front in cash. That's called cash-over-valuation. (I think the original purpose was to prevent buyers from buying at too high prices, make them think twice before anyhow-ly buying expensive resale.)

So make sure try to you buy a flat that's priced close to valuation.

Hope this helps a bit.

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Should I sell my 5-room resale HDB and downgrade to a 4-room BTO HDB?

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