Learner Guide HDB Resale Procedure and Financial Plan - V2

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( Version 2 )

Learners Guide

J anuary 2012

Organized By

HDB Resale Procedure & Financial Plan Property of Wild Wild West Properties Pte Ltd
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Contents Page

Section 1 - Introduction
Type of HDB Flats 2 - 4
HDB Time Planning 5
Learner Activity 1 6 - 7
Learner Group Activity 1 8

Section 2 Resale Procedure
Resale Checklist Buyers & Sellers 9 - 12
Important notes on Option To Purchase 13 - 16
How to fill up the Option To Purchase 17 - 26
Documents for Registration 27
Learner Activity 2 28
HDB Eligibility Scheme and Conditions to Purchase 29
HDB Eligibility Checklist 30 - 31
Ethnic Integration Policy 32

Section 3 CPF Housing Grant
Types of Grants available 33
Family Grant 34 - 37
Additional CPF Housing Grant 38 - 39
Housing Grant for Singles 40 - 44
Use of Grant 45 - 46

Section 4 Financial Plan
HDB Loan 47
Bank Loan 48
Buying 49
Above valuation
Below valuation
At valuation
Example of HDB Loan 50
Example of Bank Loan 51
Learner Group Activity 2 54
Final Assessment 57 - 59
Annexes 60
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Types of HDB Flat

Conversion : 1 sq.m =10.76 sq.ft

TYPES
Floor Area (Approx.)
Sq. Meter Sq. Feet
2 'S' 42 452
3 'I' 60 646
3 S 65 700
3 'NG' 68.8 741
3 'A' 73 788
1/2 RM 82 883
'I' 82 883
'S' 85 915
4 'NG' / 4 A2 92.5 996
4 A1 100
1076

4 'A' 105 1130
'S' 110 1184
5 'I' 123 1324
5 'A' 135 1453
E.A / EM 145 1560
J umbo 180 1936

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J umbo : Area ~158m
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RESALE TIME PLANNING

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After viewing a potential unit for the second time, your buyer decided to purchase the unit. The
buyer had a valid HLE from HDB and both the sellers and the buyer wanted to complete the
transaction as early as possible.

Please advise buyer accordingly using the resale time planning.
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Discuss the individual answers that your group
have and select one representative to present your
best answer and the points to take note.
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Source from HDB
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Source from HDB
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Source from HDB
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Source from HDB
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Source from HDB
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Source from HDB
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Source from HDB
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Source from HDB
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Source from HDB
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Documents For Registration (HDB/BANK)

SELLER :

RESALENET APPLICATION FORM
$80 REGISTRATION FEES

BUYER :

RESALENET APPLICATION FORM
$80 REGISTRATION FEES
BUYER CHECKLIST

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After viewing a 4 room flat in J urong today, both the buyers and sellers of the unit agreed to
sell and purchase the unit at S$388,000. Your are the salesperson acting for the seller and you
are required to fill up the OTP (using the sample copy of OTP provided) based on the
following information :

Buyers :

Divorcee, Tan Chin Chuan, S1085677D
Daughter under his custody, Ong Bee Geok, S9900991A
Currently staying at Blk 123 Choa Chu Kang Ave 1
#03-90 Singapore 680123
Option Fee placed S$1000
Deposit agreed upon S$3000
Waiting for bank LO before exercise
Registration within 30 days

Sellers :

Lim Beng Ann, S1690001G
Koh Ai Min, S1890978F
Blk 101 J urong East Street 13 #08-818 Singapore 600101
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Eligibility Schemes & Conditions to Purchase

* SC denotes Singapore Citizen ** SPR denotes Singapore Permanent Resident

Scheme

Citizenship
(Family Nucleus)
Min Age
(years)
(Owner)

Family Nucleus

Special Conditions

Public (PA)

2 SC; or
1 SC +1SPR;or
2 SPR
21 Applicant, spouse & children, if any; or
Applicant (single), parent & siblings; or
Applicant (widowed, divorced or
separated) and children legally under his
custody

Fiance/Fiancee

2 SC; or
1 SC +1SPR;or
2 SPR
21 Couple intending to get married Marriage certificate must be shown to HDB within 3 months
fromresale completion date. For couples applying for the CPF
Housing Grant, they must submit it on /before the resale
completion date.
Orphans

2 SC; or
1 SC +1SPR

21 A single orphan applicant and his siblings;
or two single orphans. Unrelated orphans
must buy as co-applicants and must be at
least 21 and are SCs (J SS).
Unrelated orphans must buy as co-applicants. Unmarried
siblings are not allowed to buy separate flats. If an orphan is
the only child and single, he can apply under the SSC scheme
if he is at least 21.
Single
Singapore
Citizen (SSC)

1 SC 35
21(orphan
s/widows)
Single person who is unmarried, divorced
or widowed.
You can buy a resale flat of any flat-type in any town/estate.
J oint Singles
(J SS)
2 SCs 35
21(orphan
s/widows)
Related or unrelated singles. Application must include at least 2 Sporean as owners.
Non-Citizen
Family
(NCF)
1 SC 21 1 SC applicant who is at least 21 and a
non-citizen family member as occupier
The non-citizen listed occupier must have at least a six-month
long-termsocial visit pass on the date of registration.
Non-Citizen
Spouse
(NCS)
1 SC 21

35
Married a non-citizen spouse with at least 6
months social visit pass.
Married a non-citizen spouse with less than
6 months social visit pass.
You can buy a resale flat of any flat type.
Source fromHDB
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HDB RESALE BUYER'S ELIGIBILITY CHECK

1. HDB ELIGIBILITY SCHEME

Public Scheme (PA)

Non-Citizen Spouse Scheme (NCS)

Fianc/ Fiance Scheme

Non-Citizen Family Scheme (NCF)

Single Singapore Citizen Scheme (SSC)

Orphans Scheme

J oint Singles Scheme (J SS)

2. CPF GRANT FOR FAMILY $20K to $40K CPF GRANT FOR SINGLE $15K/$20K
Singaporean Singaporean
Age: 21 Age: 35
First timer Income ceiling $5k
Family nucleus 5 Room
Income ceiling $10k No private property last 30 months
$15k Stay same flat with parents Not bankrupt

No private property last 30 months
Not bankrupt

Buying Resale flat not affected by
SERS

Buying Resale flat not
affected by SERS

$15K or
$20K stay with Parents

$20K SC / SPR Household
$30K SC / SC Household
$40k near Parents /Married Child

ADDITIONAL CPF GRANT FOR FAMILY
$5K-$40K
CPF GRANT FOR NON-CITIZEN
SPOUSE $15K

At least one of the buyers working
continuously for past 1 years
One Singaporean ; One Non-citizen

Household Income $5K

Age: 21
HALF GRANT FOR FAMILY $15K/$20K

Income ceiling $10k

First timer ; Spouse Taken Grant
No private property last 30 months

Singaporean
Not bankrupt
$15K or
Buying Resale flat not affected by
SER

$20K near Parent /Married Child

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HDB RESALE BUYER'S ELIGIBILITY CHECK

3. QUALIFY FOR HDB LOAN

At least one buyer is a Singaporean citizen

Household monthly income $10,000 (Family)

Household monthly income $5,000 (Single)

Have not previously taken two or more HDB concessionary interest rate loans

Do not own any private residential property ( include HUDC flat/Executive Condo) inside or

Out of Singapore

Have not disposed off any private residential property ( include HUDC flat/ Executive

Condo) within 30 months before the date of application for HDB Loan Eligibility (HLE) and

have never taken any HDB concessionary interest rate loan

Do not own more than one owner-operated market/hawker stalls or commercial/industrial

property in or overseas

Do not own any market/hawker stall or commercial/industrial property that is rented out

For single buyer under the Single Singapore Citizen (SSC) Scheme, gross monthly income

Does not exceed $5,000, resale flat size is 5 room or smaller

4. SECOND CONCESSIONARY HDB LOAN

HDB will reduce the quantum of the second concessionary loan by the full CPF proceeds
and part of the cash proceeds from the sale of the existing or immediate past HDB flats.

Flat buyers can keep the greater of $25,000 or half of the cash proceeds

REMARKS:

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Ethnic Integration Policy & PR Quota

The Ethnic Integration Policy (EIP) is to promote racial integration and harmony and to
prevent the formation of racial enclaves, by ensuring a balanced ethnic mix among the various
ethnic communities living in public housing estates.

The EIP is applicable to the purchase of new flats, resale flats, SERS ( Selective En-bloc
Redevelopment Scheme) replacement flats and DBSS (Design, Build & Sell Scheme) flats as well
as the allocation of rental flats in all HDB estates.

Under the Policy,

Maximum proportions are set for all ethnic groups : Chinese, Malays and Indian/Others, in each
HDB block and neighbourhood. There is no restriction on the sale and purchase of an HDB flat if
the proportion of the buyer's ethnic group is within the prescribed block and neighbourhood
limits.
Once the block/neighbourhood limit for a particular ethnic group has been reached, no further
sale of HDB flats to that ethnic group will be allowed if it will lead to an increase of the
proportion beyond the limit.
There is no restriction if the buyer and seller are of the same ethnic group.
SPR Quota
For resale applications received on or after 5 March 2010, Singapore Permanent Resident (SPR)
families buying a resale flat will have to meet the SPR quota, in addition to the Ethnic Integration
Policy (EIP). The SPR quota ensures that SPR families can integrate into the local community for
social cohesion and to prevent enclaves forming in the public housing estates. The quota will
only apply on non-Malaysian SPRs. Malaysians are excluded because of our close historical and
cultural links.

Checklist for Buyers/Sellers:

You may check the eligibility of buyer's ethnic group and PR quota in any particular block using
the following channels :

www.hdb.gov.sg
Sale/Resale Customer Service Line (office hours): 1800-8663066

Important Notes:

The status of changes of ethnic proportions is updated on the first day of every month and is
applicable for resale applications submitted to HDB in the current month.

Source from HDB
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Type of CPF Housing Grant Available

Source from HDB
Target Recipient Type of CPF Grant
For married couples who are
First-timer applicants
Family Grant
For married couples who are
First-timer applicants and
Buying a resale flat near their parents'/married child's HDB
flat or owner-occupied private residential property
Higher-tier Family Grant
Applicants of $30,000 Family Grant/$40,000 Higher-tier
Family Grant, if:
They have worked for at least 1 year and
Average monthly household income over the last 1 year does
not exceed $5,000
Additional CPF Housing Grant
(AHG)
For Single Citizens:
Single applicants aged 35 and above who buy the resale flat
to live on their own under Single Singapore Citizen (SSC)
Scheme, or
2-4 Single Citizens aged 35 and above who jointly buy a
resale flat under J oint Singles Scheme (J SS)

For Singapore Citizens above 21 years who are
Married to a non-citizen spouse who is holding a social visit
pass (including work permit) with a validity of at least 6
months under Non-Citizen Spouse Scheme
Singles Grant
For single citizens who are
Aged 35 years and above
Buying a resale flat to live with their parents
Higher-tier Singles Grant
For Singles Grant recipients who subsequently get married

Also applicable for Singles Grant recipients under the Non-
Citizen Spouse Scheme whose non-citizen spouse or child
subsequently obtained Singapore Citizenship or permanent
residence status.
Top-up Grant to the Family Grant
For a first-timer citizen with spouse who had previously
enjoyed a housing subsidy
Half-Housing Grant
Source from HDB
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Family Grant

Eligibility Conditions :

Criteria Detailed Description
Citizenship You are a Singapore Citizen. Your family nucleus must comprise of
at least another Singapore Permanent Resident or Singapore Citizen.
Age You must be at least 21 years old.
Family Nucleus You are applying with your:
Spouse and children (if any), or
Fianc/fiance (must be able to produce your marriage certificate,
latest by the date of resale completion), or
Children under your legal custody, care and control (if widowed or
divorced)
Income Ceiling Your average gross monthly household income must not exceed
$10,000
#
.
If applying with extended family, average gross monthly
household income must not exceed $15,000
#
.
Guidelines on assessment of household income.
#
For resale applications received on or after 15 Aug 2011.
If your average gross monthly household income over the past 12
months is $5,000 and below, you can also apply for the Additional
CPF Housing Grant (AHG) in addition to Family Grant.
Ownership/Interest in
Property
You(applicant), co-applicants and all persons listed in the application
for purchase of the flat must not
Own any of the following (local or overseas properties) or have
disposed of one within 30 months prior to the application:
- Private residential property (including HUDC flat, Executive
Condominium)
- House
- Building
- Land
Be buying a 1-room flat or a resale flat (of any flat type) that has been
announced for redevelopment under the Selective Enbloc
Redevelopment Scheme (SERS).

Source from HDB
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Type of Family Grant and Respective Grant Amount

Type of Grant Available Amount
SC / SC Household SC / SPR Household
CPF housing grant for family
Read more about Promoting
Citizenship in HDB Households
$30,000 $20,000
#

CPF housing grant for family (living
near parents/married child*):
Parents staying with you in the resale
flat, or
Your parents and married child are the
owner-occupant of property in the
same town or within 2 km
*At least one of the parents/married
child must be a Singapore Permanent
Resident or Singapore Citizen.
$40,000 $30,000
#

Half Housing Grant
If you are a first-timer citizen and your
spouse has previously enjoyed a
housing subsidy

$15,000
or
$20,000 (living near parents/married child)

#
If you are from an SC/SPR household, you can enjoy the full housing
subsidy by applying for the Citizen Top-Up when your SPR family member
takes up Singapore Citizenship or when you have an SC child.

Source from HDB
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Higher-Tier Family Grant

Citizenship You are a Singapore Citizen. Your family nucleus must comprise of
at least another Singapore Permanent Resident or Singapore Citizen.
Read more about Promoting Citizenship in HDB
Households

Age You must be at least 21 years old.
Family Nucleus You are applying with your:
Spouse and children (if any), or
Fianc/fiance (must be able to produce your marriage certificate,
latest by the date of resale completion), or
Children under your legal custody, care and control (if widowed or
divorced)
Income Ceiling Your average gross monthly household income must not exceed
$10,000
#
.
If applying with extended family, average gross monthly
household income must not exceed $15,000
#
.
If your average gross monthly household income over the past 12
months is $5,000 and below, you can also apply for the Additional
CPF Housing Grant (AHG) in addition to Family Grant.
Guidelines on assessment of household income for
AHG.
Ownership/Interest in
Property
You(applicant), co-applicants and all persons listed in the application
for purchase of the flat must not
Own any of the following (local or overseas properties) or have
disposed of one within 30 months prior to the application:
- Private residential property (including HUDC flat, Executive
Condominium)
- House
- Building
- Land
Be buying a 1-room flat or a resale flat (of any flat type) that has been
announced for redevelopment under the Selective Enbloc

Source from HDB
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Type of Family Grant and Respective Grant Amount

Type of Grant Available Amount
SC / SC Household SC / SPR Household
CPF housing grant for family
Read more about Promoting
Citizenship in HDB Households
$30,000 $20,000
#

CPF housing grant for family (living
near parents/married child*):
Parents staying with you in the resale
flat, or
Your parents and married child are the
owner-occupant of property in the
same town or within 2 km
*At least one of the parents/married
child must be a Singapore Permanent
Resident or Singapore Citizen.
$40,000 $30,000
#

Half Housing Grant
If you are a first-timer citizen and your
spouse has previously enjoyed a
housing subsidy

$15,000
or
$20,000 (living near parents/married child)

#
subsidy by applying for the Citizen Top-Up when your SPR family member
takes up Singapore Citizenship or when you have an SC child.

Source from HDB
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Additional CPF Housing Grant (AHG)

Eligibility conditions:

Meet eligibility
conditions and
are applying
for:
CPF
Housing Grant
for Family or
CPF
Housing Top-
Up Grant
AHG applicants must meet all eligibility conditions and must
be applying for any of the CPF Housing Grant below:
CPF Housing Grant for Family or
CPF Housing Top-Up Grant
Employment
Status
You or your co-applicant(s) must be in continuous
employment for one year before the flat application.
Income
Ceiling
Your average gross monthly household income for the
one-year period must not be more than $5,000.
Guidelines on assessment of household income for
AHG.

Source from HDB
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Amount of Additional CPF Housing Grant (AHG)

The amount of AHG you will be eligible for is graded based on your average
gross monthly household income as follows:

Average Monthly
Gross Household
Income*
AHG prior to 6 Feb
2009**
AHG with effect from
6 Feb 2009**
$1,500 or less $30,000 $40,000
$1,501 - $2,000 $25,000 $35,000
$2,001 - $2,500 $20,000 $30,000
$2,501 - $3,000 $15,000 $25,000
$3,001 - $3,500 $10,000 $20,000
$3,501 - $4,000 $5,000 $15,000
$4,001 - $4,500 - $10,000
$4,501 - $5,000 - $ 5,000

*
Prior to 6 Feb 2009 : The average gross monthly household income was
assessed over a period of 2 years.
After 6 Feb 2009 : The average gross monthly household income is assessed
over a period of 1 year
**
Cut-Off Date is based on Resale Application received by HDB, i.e. on or
after 6 Feb 2009.

Source from HDB
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Housing Grant for Singles

Eligibility Conditions :

Citizenship You are a Singapore Citizen (SC).
Age At least 35 years old if you are single and
applying for resale flat under any of the following
schemes:
Single Singapore Citizen Scheme
Joint Singles Scheme
Orphans Scheme
Public Scheme (if parents are included in the
resale application as co-applicants or occupants)
Non-Citizen Family Scheme
OR

At least 21 years old if you are married and
applying for resale flat under the Non-Citizen Spouse
Scheme
Income Ceiling Average Gross Monthly Household Income must not
exceed $5,000
#
and buying a 2-, 3-, 4- or 5-room
resale flat under the Single Singapore Citizen
Scheme
OR
Average Gross Monthly Household Income must not
exceed $10,000
#
and below if:
buying a resale flat under the other eligibility
schemes
There is no flat type restriction for this group of
grant applicants.

#
For resale applications received on or after 15 Aug
Source from HDB
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2011.
Special Conditions For the Higher-Tier Singles Grant, the parents* must
be included in the application as the co-applicants or
occupants.

*At least one of the parents must be a Singapore
Permanent Resident or Singapore Citizen.
Ownership/Interest
in Property
You(applicant), co-applicants and all persons listed in
the application for purchase of the flat must not
Own any of the following (local or overseas
properties) or have disposed of one within 30
months prior to the application:
- Private residential property (including HUDC flat,
Executive Condominium)
- House
- Building
- Land
Be buying a 1-room flat or a resale flat (of any
flat type) that has been announced for
redevelopment under the Selective Enbloc

Amount of CPF Housing Grant for Singles

Singles Grant Higher-tier Singles Grant
$15,000
#
$20,000*

#
For resale applications received on or after 15 Aug 2011.

For the Higher-Tier Singles Grant, the parents* must be included in the
application as the co-applicants or occupants

Source from HDB
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Top-Up Grant to the Family Grant

The CPF Housing Top-Up Grant Scheme is a housing subsidy for those who
have taken a CPF Housing Grant for Singles previously in their purchase of a
resale flat
who subsequently marry a first-timer citizen spouse or another
Singles Grant recipient; or
whose non-citizen spouse or child have become a Singapore
Citizen or Singapore Permanent Resident (applicable for those who have
bought a resale flat under the Non-citizen Spouse Scheme).

They can apply for the Top-Up Grant for their existing flat or when they buy
another resale flat, if they meet the listed eligibility criteria.

The grant is only given to Singapore Citizen spouse (not Singapore
Permanent Resident spouse) who is listed as an owner or applicant of the
flat.

Eligibility Conditions:

Category Detailed Description
Citizenship You are a Singapore Citizen (SC).
Family Nucleus Your eligibility for Top-up will be assessed at the
point when your family nucleus first meets the
minimum citizenship requirement (i.e. 1 SC and 1
SPR in the family nucleus):
For Singles Grant recipients who bought resale flats
under SSC/JSS and subsequently get married
You are married to a Singapore Citizen (SC) or
Singapore Permanent Resident (SPR) on or after 1
Aug 2004.
Your application for the CPF Housing
Top-Up Grant must be submitted to the HDB within 6
months from the date of marriage registration
Your spouse must be a first-timer (i.e.
Source from HDB
Page | 43

have not enjoyed any housing subsidy before) or
another Singles Grant recipient
OR
For Singapore Citizens who had bought resale flats
under the Non-citizen Spouse Scheme and obtained
Singles Grant
You are married to a non-SC or non-SPR on or after
08 Mar 2005, and:
Your spouse or child(ren) later obtain SC or
SPR status, or
You and your spouse later give birth to an SC
or SPR child(ren)
Your application for the CPF Housing Top-Up Grant
must be submitted to the HDB within 6 months after
the spouse or child obtains Citizenship or Permanent
Resident status.
Average
Gross Monthly
Household Income
Must be $10,000 and below.
If the average gross monthly household
income over the past 12 months is $5,000 and
below, you may also apply for the Additional CPF
housing grant (AHG)
Ownership/Interest
in Property
You(applicant), co-applicants and all persons listed in
the application for purchase of the flat must not
Own any of the following (whether local or
overseas properties) or have disposed of one 30
months prior to the application:
- Private residential property (including HUDC flat,
Executive Condominium)
- House
- Building
- Land
Have bought or sold a flat purchased directly
from HDB or bought or sold a resale flat bought with
a Family Grant.
Source from HDB
Page | 44

Buy a 1-room flat or a resale flat (of any flat
type) that has been announced for redevelopment
under the Selective Enbloc Redevelopment Scheme
(SERS).

Amount of prevailing Family Grant:

Family Grant Family Grant (Living Near
Parents/Married Children)
SC / SC
Household
SC / SPR
Household
SC / SC
Household
SC / SPR
Household
$30,000 $20,000
#
$40,000 $30,000
#

#
subsidy by applying for the Citizen Top-Up when your SPR spouse takes up
Singapore Citizenship or when you have an SC child.

Source from HDB
Page | 45

Use of Grant

The CPF Housing Grant will be credited into your CPF Ordinary
Account and treated as part of your CPF fund. It can be used to pay for
the CPF portion of the down-payment at the time of signing of the Sales
and Purchase Agreement after you have paid the cash payment (if
applicable) or to reduce the mortgage loan.
The CPF Housing Grant will be included in the computation of the CPF
withdrawal limit.

Conditions to comply with after getting the CPF housing grant
How it will impact you

SC/SPR Household getting Family Grant

If you are from an SC/SPR household, you can enjoy the full housing subsidy
by applying for the Citizen Top-Up when your SPR family member takes up
Singapore Citizenship or when you have a SC child.

Minimum Occupation Period (MOP)

You need to occupy the flat for a minimum period of 5 years before you are
allowed to:
Sell the flat in the open market
Invest in private residential property - both local and
overseas
Sublet the whole flat

The start date used to compute the occupation period is the date of purchase
of the flat.

Only for CPF Top-Up Grant
Waiver of MOP

If you and your spouse currently own a flat each and wish to dispose of both
flats to buy another resale flat with the Top-Up Grant:
HDB may grant waiver of MOP for 1 flat to be sold in the open
market
The other flat can be transferred to eligible family members or persons
under an approved housing scheme
Source from HDB
Page | 46

Resale Levy

Resale Levy is payable when you buy or take over the ownership of another
subsidised flat. Read more on the Resale Levy and charges.

Refund of CPF Money

When you sell the flat bought with CPF Housing Grant, all the CPF money you
spent (including the housing grant) will be returned to your CPF account
according to the CPF Boards rules and regulations.
Disposal of Existing Flat
You have to dispose of your flat within six months of the date of taking
possession of the resale flat.

How it will impact your Parents/Married Child

If you are applying for a higher-tier grant, i.e. your flat is near your
parents'/married child's home, during the 5-year occupation period*, your
parents/married children must remain:
In the existing town, or
Within 2 km of the resale flat

* Your parents/married child must attend the first appointment with you and
sign an Undertaking for the above)

Source from HDB
Page | 47

HDB RESALE BUYERS FINANCIAL PLAN

HDB Loan

Resale Price
HDB Valuation
COV (CASH ONLY)
<100%
10% Down Payment
( CPF / CASH )
Stamp +Legal Fee
~2% of Purchase Price or Valuation
(Whichever higher)
( CPF / CASH )
Loan Granted :

90% of Valuation
(Max)
Loan Quantum
(Age & Income)

Page | 48

HDB RESALE BUYERS FINANCIAL PLAN

Bank Loan

Resale Price
HDB Valuation
COV (CASH ONLY)
<100%
15% Down Payment
( CPF / CASH )
Stamp +Legal Fee
~2% of Purchase Price or Valuation
(Whichever higher)
( CPF / CASH )
Loan Granted :

80% of Valuation
(Max)
Loan Quantum
(Age & Income)
5% Minimum Cash Payment
(CASH ONLY)
Page | 49

HDB LOAN - BUYERS FINANCIAL PLANNING
Purchase Price above Valuation

Purchase Price Below Valuation Purchase Price at Valuation
10% =$32,000
(CPF Down payment) +
2% Purchase Price
($6,400)
(Legal +Stamp)
Total CPF required =
$38,400
$300,000
(HDB Valuation)
$320,000
(Purchase Price)
$420,000
(HDB Valuation)
$400,000
(Purchase Price)
COV =
$20,000
10% =$30,000
2% Purchase Price ($6,400)
(Legal +Stamp)
Total CPF required =$36,400
90% Loan =$270,000
COV =
$20000
10% =$40,000
3% Purchase Price
($12,600)
(L l +St )

90% Loan =$360,000
<100%

90% Loan =$288,000

<100%
<100%

Note: e.g If HLE
approve is only
S$250,000
Buyer have to top up
S$20,000 CPF or Cash
Note: e.g If HLE approve is only
S$165,000
Buyer have to top up S$195,000
CPF or Cash

Note: e.g If HLE approve is only
S$165,000
Buyer have to top up S$123,000 CPF
or Cash

$320,000
(Purchase Price)
(HDB Valuation)
Estimated SF/LF :
Purchase Price <$360K : 2%, >$360K : 3%
Page | 50

EXAMPLE 1 : HDB LOAN - BUYERS FINANCIAL PLANNING

Step 1: Cash
Purchase Price : $ 350,000
HDB valuation : - $ 280,000
Cash 1 : $ 70,000

Step 2: CPF
CPF Ordinary AC Available $ 40,000
10% of VAL / PP (whichever lower) : - $ 28,000
2% of PP (Legal +Stamp Duty) : - $ 7,000
CPF Surplus / CPF Shortfall ( Cash 2 )) $ 5,000

Step 3: Loan
90% of VAL / PP (whichever lower) : $ 252,000
CPF Surplus : - $ 5,000
Loan needed : $ 247,000
Loan Qualified : $ 293,000
Cash 3 $ NIL .

SUMMARY:
1. Total Cash Required
( Cash 1 +Cash 2 +Cash 3 )
: $ 70,000
2. Loan needed, Tenure ( ), Int. ( ) : $ 247,000
3. Monthly Installment : $ 1,012
4. 1% Agent commission (+7% GST) : $ 3,745

Page | 51

EXAMPLE 1 : BANK LOAN - BUYERS FINANCIAL PLANNING

Step 2: CPF
CPF Ordinary AC Available $ 40,000
15% of VAL / PP (whichever lower) : - $ 42,000
2% of PP (Legal +Stamp Duty) : - $ 7,000
CPF Surplus / CPF Shortfall ( Cash 2) $ 9,000

Step 3: Loan
80% of VAL / PP (whichever lower) : $ 224,000
CPF Surplus : - $ 0
Loan needed : $ 224,000
Loan Qualified : $ 300,000
Cash 3 $ NIL .

Step 1: Cash
Cash-Over-Valuation : $ 70,000
5% Minimum Cash Payment :+$ 14,000
Cash 1 $ 84,000

SUMMARY:
: $ 93,000
2. Loan needed, Tenure ( ), Int. ( ) : $ 224,000
3. Monthly Installment : $ 940
4. 1% Agent commission (+7% GST) : $ 3,745

Page | 52

CASE SCENARIO : Buy 1
st
Sell Later

Flat type Exec - Apt
Purchase Price $495,000
Market Valuation $450,000
Applicant (Husband) age, last birthday 44 yrs old
Co-applicant (Wife) age, last birthday 42 yrs old
Household Income $ 10,000
Total CPF ordinary A/C
Refer to Statement
Annex pages 67 & 70
HDB Loan, HLE Granted $ 800,000

Page | 53


Step 1: Cash
Purchase Price : $
HDB valuation : - $
Cash 1 : $

Step 2: CPF
CPF Ordinary AC Available $
10% of VAL / PP (whichever lower) : - $
2% of PP (Legal +Stamp Duty) : - $
CPF Surplus / CPF Shortfall ( Cash 2 )) $

Step 3: Loan
90% of VAL / PP (whichever lower) : $
CPF Surplus : - $
Loan needed : $
Loan Qualified : $
Cash 3 $ .

SUMMARY:
: $
2. Loan needed, Tenure ( ), Int. ( ) : $
3. Monthly Installment : $
4. 1% Agent commission (+7% GST) : $

Page | 54

Discuss in your group, the individual answers that you
have and get one representative to present the correct
answer and list out the mistakes that were made.

Page | 55

CASE SCENARIO : Flat sold already. Completion in 1 mths
Time

Flat type 5A
Refer to Statement
Annex pages 68 - 70
Bank Interest Rate 1.8%
Bank Approval in Principle 70% of Value
CPF to be fully utilized

Page | 56

BANK LOAN - BUYERS FINANCIAL PLANNING

Step 1: Cash
Cash-Over-Valuation : $
5% MinimumCash Payment : - $
Cash 1 : $

Step 2: CPF

Step 3: Loan
CPF Surplus : - $
Loan needed : $
Loan Qualified : $
Cash 3 $ .

SUMMARY:
: $

Page | 57

CASE SCENARIO : Sell 1
st
Buy Later

Flat type 4A
Refer to Statement
Annex pages 69 & 70
HDB loan, HLE granted $200,000
Bank Interest Rate
Bank Approval in Principle
1.8%
80% of value
J ust sold there 3 room flat, completion in 1 months time

Page | 58


Step 1: Cash
Purchase Price : $
HDB valuation : - $
Cash 1 : $

Step 2: CPF

Step 3: Loan
CPF Surplus : - $
Loan needed : $
Loan Qualified : $
Cash 3 $ .

SUMMARY:
: $

Page | 59

BANK LOAN - BUYERS FINANCIAL PLANNING

Step 1: Cash
Cash-Over-Valuation : $
5% MinimumCash Payment : - $
Cash 1 : $

Step 2: CPF

Step 3: Loan
CPF Surplus : - $
Loan needed : $
Loan Qualified : $
Cash 3 $ .

SUMMARY:
: $

Page | 60

Annexes Pages

Sample of valuation report 61 - 66

Husbands CPF withdrawal statement 67 - 69

Wifes CPF withdrawal statement 70

Factors for Computation on Monthly Installment 71

Estimated Date of Completion for Resale of Flat 72

Loan Quantum Table for Purchase of HDB Flats 73 - 74

Bank Loan Table 75

Latest updates If Any
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Source from HDB
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Source from HDB
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Source fromHDB
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