HDB is also extending its hands for people with its second concessionary loan by allowing buyers who is downgrading, upgrading or buying flat of the same type to borrow.
Previously, only buyers who are upgrading their flats are allowed to borrow the second time directly from HDB. This might have unintentionally caused families who are not ready to upgrade their flats to do so.
Right Sizing the Quantum for the Second Concessionary Loan
HDB will reduce the quantum of the secondary concessionary loan by the full CPF proceeds and part of the cash proceeds from the sale of the existing or immediate past HDB.
Flat buyers can keep the greater of $25,000 or half of the cash proceed (including cash deposit received) and determine the quantum of the second loan to be granted.
50% of the cash proceeds (including deposit and cash over valuation) from the sale of the immediate past HDB flat and all of the CPF balance to finance the purchase of the next flat.
HDB will also be helping home owners who will be buying their next flat before selling their existing one by allowing them to apply for the second concessionary loan by granting them a bigger laon at commercial interest rates. The commercial interest rates are pegged to the 3-month average non-promotional interest rate for HDB flats offered by the 3 local banks.
They will redeem this loan with the full CPF refund from the sale of existing flat and part of the cash proceeds and will be reverted back to a concessionary rate loan.