How should we plan our financials when downgrading from EC to HDB?

Hi,

You can either Sell first before buying or buy first as well.

Lets talk about the more traditional method of selling first before buying.

Please take into account the price you sell at less off

1) Outstanding loan

2) CPF + Accrued interest

= cash you get back

And then you will have the CPF and cash to buy your next home.

If you buy first, you have to sell within 6 months.

and get a loan from one of the few banks that will grant you a 75% loan before your sale goes through.

Should you require the monies from the sale, you will take up what we call a bridging loan, where the bank fronts you the money first, while waiting for the sale proceeds to return.

the interest rate on the bridging loan is Per Annum 4.25%-6.75% depending on which bank - calculated at a per day basis.

• Also, banks do not grant a bridging loan alone, but must come with a home loan together.

• if your intention is not to have any more loans, you should consider selling first before buying.​​​

The answer if you can buy first is that if you have the CPF/Cash / Bank Loan to fund the purchase.

Most people's CPF is tied up into their current home.

So if you add up your current OA + Cash + Bank Loan, which can match the purchase price, then u can buy first then sell later.

If you add all these up, yet don't have sufficient then have to sell first and buy later.