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Hi there,
My husband is a SC and I'm a SPR. We are planning to buy a second property (resale condo).
The loan for my HDB is still outstanding, but our OA should be enough to pay up fully the outstanding amount. Assume the condo we eyeing is about 1.6mil and we want to keep our HDB.

How much down payment do I have to pay if I were to buy the condo? Can I use cpf to pay for this down payment or must be cash?

Also, is it we need to set aside half of the prevailing minimum sum? How much is that?

And, how much the monthly payment will be? We are ~43 years old.
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7 Answers

YT Tan (陈永达)
Replied
Good morning buyer,

You will be able to loan up to 80% bank loan for your second property purchase if you will to fully pay up your existing loan for HDB.

But do take note of these few cooling measures that will be applicable to you:

1) 10% additional buyer's stamp duty as your wife is SPR. Higher of SPR 10% vs SC 7%.

2) Need to set aside half of minimum sum of $80.5k in your CPF SA + OA first before you can use the excess CPF OA funds in this purchase.

Therefor your initial outlay will be 33% of purchase price.

1) 13% stamp duties
2) 20% downpayment

You will need to have $528k ready funds for this purchase.

As for monthly mortgage, it will be around $7k per month for max 80% bank loan and for 22 years loan tenure.

Hope my sharing is beneficial to your property purchase.

I might have a suggestion that can help you save up on ABSD. Will you like to hear me out?

Warmest Regards,
YT TAN 陈永达 | ACCA Graduate, RES
R043025D
Propnex Realty Pte Ltd

(M): +65 9111 5171 
(E): yt.lovelyhomes@gmail.com
(W):www.yttan.com Read More
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Ivan Ng
Replied
Hi,

In this case, its better to pay down the HDB loan fully so that you can loan max 80% for the resale condo. There will be a 10% ABSD payable (based on the higher stamp duty rate of SPR 2nd property). The breakdown will be as follows:

Cash 5%
CPF 15%
Max Bank Loan 80%
Stamp duties (BSD+ABSD) and Legal Fees Approx 13%

Hence you are looking at about 528K cash+CPF for the purchase only. We have not factored in the amounts you need to use to pay down the current HDB loan fully.

May I understand your requirements so to make better recommendations? Thanks and look forward to value-add to your plans further.

Warm Regards,
Ivan Ng ERA ASAP
(ASk Anything Property)
Proactive. Sincerity. Feedback.
SMU BBM (Finance), Magna Cum Laude

Email: Ivanng10@gmail.com
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(Client's Testimonials) Read More
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Ng Teck Chuan
Replied
Hi investor,

Downpayment is 20% (minimum 5% cash, the rest can be CPF), BSD + legal fees 3%, ABSD 10% (because you're SPR); minimum sum is $80.5k each (OA + SA).

Therefore, the minimum cash you need (assuming your CPF has sufficient funds of $448k after factoring in the minimum sum) is $80K.

Mortgage payment (for 80% loan) would be ~$6k/mth (considering 22 years tenure, 2% interest); that is considering other factors are fine (e.g. income, other debt obligations, credit records etc).

You might want to contact me, and I can get my banker to give you a preliminary loan assessment first, before you commit to anything.

Thanks and regards,
Teck Chuan, Ng
BBA (Finance), NUS
ERA Realty Network Pte Ltd
Mobile: 9137 4602  Read More
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Mike Lim
Replied
Afternoon,

Assuming that you managed to clear the current outstanding loan, you should be eligible for 80% loan, subjected to credit standing, income status and purchase price.
ABSD of 7% is payable should the property be owned by your SC spouse. Setting aside the CPF minimum sum is also required at around $80k, inclusive of OA and SA. With this in mind, assuming that you do not have sufficient CPF funds, you will need around $500k cash to purchase a property of $1.6mil.

Do feel free to contact me should you require my assistance.

Regards
Mike Lim
 96929209 
m52i@yahoo.com
ERA Read More
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D. Kumar
Replied
Hi,

Perhaps you could consider getting in touch with me so that I can understand your finances throughly to chart out succinctly the financial progressive payment and breakdown timeline for your understand. Do visit my website for my high level of awards and testimonials! Thanks!

D Kumar
 +65 96659926 
ERA Associate Division Director
www.kumarrai.com ( Recent Awards and Testimonials)

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CK Ang
Replied
Hi,
Yes, you can purchase 2nd pte property but the loan quantum will be only 50% of the valuation. To be eligible for the 80% loan, you may pay off the hdb loan.
Please drop me an email for me to share the breakdown cost of the purchase at 1.6mil. I will assist to compute the estimate loan amount too.

To assist and advise you more in details, kindly drop me an email for me to share.

I am contactable at my mobile or email.

CK Ang
 9046 3808 
res.ckang@gmail.com Read More
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GAN ENG JOO ONASSIS
Replied
Hi,

Re: Our Preferred SG Professional- Agent.myweb.sg & Agent.irealtor.sg

Recommendation to clear your existing loan with OA CPF or cash. To have a clear picture of the balance cash and CPF to purchase your next property as being prudent especially in your early 40s'.

Feel free to engage me as your agent. I can assist you based upon your stated contents and walk you through the entire process with options.

Call me now, we can explore further in detail.

I am contactable at 92222389  or onassis@sgrealtor.com / sgagent.com

In all Areas of Singapore. Sale/Buy/Lease/Rent, Please call and/or drop me an email me. I’m always at your Services.

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