Hi,
Yes it does look like you are able to purchase an 2 bedroom EC. . I use $750k for easier illustration
Typically breakdown as follows:
(A) 5% cash 37.5k
(B) 20% cpf OA 150k
(C) 75% max loan 562.5k
(D) 3% approx stamp duties and legal fees 19.6k
(E) resale levy 40k (if current hdb is subsidized flat)
Your sale proceeds (cash+cpf) is approx $370k after legal fees and agent success fee.
For items (a), (b), (d) , (e) it totals about $247.1k and can be sufficiently covered by your sale cash and cpf proceeds when you sell the hdb.
As for your max loan, based on your income and age profile, assuming no other major loan obligations, you should be able to loan approx $514k for new EC purchase.
The shortfall for loan would be 562.5k - 514k = 48.5 which can also be covered by your sale proceeds.
Hence is $750k new EC is do-able.
Based on current interest rate 1.4%, 514k loan at 30 years, monthly is approx $1,751 . Hence the monthly top up is approx $551 in cash, if your cpf OA contribution is $1200 monthly.
Hope this clarifies.
Actually the tricky part is the current new EC there isn't many 2 bedder option, further more at such prices. For example OLA EC 2 bedder is currently selling at $878k at the minimum.
And by the way, if you go for private condo, the (E) resale levy is not applicable and typically the max loan you can qualify for is double that of new EC due to different loan treatment measures.
Happy to share the best approach for your needs if I can have more information.
May I have more info and requirements about your plans so to make better recommendations? Thanks and look forward to value-add to your housing plans.
Warm Regards,
Ivan Ng Realtor
ERA Senior Marketing Director
ERA Diamond Achiever
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-- EC Sellers, Private Property Buyers Dr. Chan & Ms. Xie --
I would like to compliment Mr Ivan Ng for his professional work and effort.I sent my first post in Jan 2019 and Ivan replied promptly, so I have decided to contact Ivan for follow up. My EC was not ready for sale due to MOP (another 3 months from Jan) at that time and Ivan was able to give me advices on how to proceed from there. Initially we have decided to try to write to HDB for early sale but since it was only 3 months left, eventually we waited for another 3 months while we looked for our next property. Ivan was able to arrange for new property showroom appointment at a timely manner while helping us to list for our EC for sale. We were a bit worried when our EC sale time was longer than expected due to trade war, but Ivan was able to reassure us that our EC would sell. By November, he managed to secure a buyer for our EC. Thank you.
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