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Hi regarding the new rules on cash proceeds.

I understand that if loan from HDB need to pay up to 50% of cash proceed but if i loan from Bank dont need to use cash proceed.

If i use bank loan although i eligible to borrow from HDB to finance my 2nd flat and after a few years time i sell my 2nd flat and loan from HDB do i need to use my first flat cash proceed to pay?

Example:

1st flat cash procceds - $120,000.00
2nd flat cash proceeds (if have) - $0

Purchase a 3rd flat do i need to use the 1st flat cash procced $60,000.00 to pay for my 3rd flat?

Thank you
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2 Answers

Jenna Tong
Replied
Dear Wendy,

One of my clients whom I'm marketing her unit is facing the same issues. We have clarified this with 2 different HDB officers.

Basically, they will allow you to keep 50% of your cash proceeds or $25000, whichever is higher, based on the last sold unit, which in your case, is the 2nd flat you bought using bank loan.

For example, your cash proceeds based on your 2nd unit is estimated $70,000, you will get to keep 50%, which is $35,000 cash proceeds, and $35,000 will have to be used to financed your 3rd flat, which u can finance using HDB loan.

Thus, you do not have to worry about coughing out $60,000 from your 1st flat cash proceeds, which you can better use for other investments.

Do email/ call me should you need further clarifications.

Warmest Regards,
Jenna Tong ERA
 8298 3379 
jenna.tong@yahoo.com.sg Read More
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  • WC
    Replied
    Hi Jenna, if 2nd flat got no cash proceed do i need to use the 1st flat cash proceed to pay for the 3rd flat? So confirm your client didnt need to fork out any cash proceed from 1st flat to pay for 3rd flat? Thank you
Able S.K Toh
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