Timeline planning for selling your existing HDB flat and buying a new HDB BTO flat using the Contra Payment Facility

Timeline planning for selling your existing HDB flat and buying a new HDB BTO flat using the Contra Payment Facility

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Timeline for contra payment facility

Important of timeline planning

When selling your existing HDB flat and buying a new HDB BTO flat, timeline planning is important to ensure a smooth transaction between selling and collecting your new BTO flat key.

When should I sell my existing HDB flat?

The key collection of the new BTO flat is by the Estimated Completed Date (ECD) or Probable Completion Date (PCD).
If you sell your existing flat too early, you may risk receiving the BTO key collection invitation from HDB after the completion of your existing flat, and you may need to move to temporary accommodation. If you sell your existing flat after receiving the HDB letter of invitation to collect your new BTO flat key, you may be under pressure to sell your existing flat due to the deadline set by HDB.

There are many factors affecting timeline planning, for example:

• Temporary accommodation
• Fund available for the BTO flat (CPF in ordinary account and cash)
• Loan on your new BTO flat
• Loan of the existing HDB flat
• Use of sale proceeds from existing HDB flat to finance BTO flat

In this article, we discuss the timeline for selling your existing HDB flat using the Contra Payment Facility, which allows you to collect the new BTO flat key and renovate it while processing the sale of your existing flat.

What is Contra Payment Facility?

The Contra Payment Facility grants you an additional loan on top of your housing loan, after all your available CPFOA balance is used for the BTO flat purchase.

Source:https://www.hdb.gov.sg/residential/buying-a-flat/buying-procedure-for-new-flats/key-collection

The proceeds from the sale of the existing flat can cover the purchase of the new BTO flat.

Sale proceeds able to cover BTO flat price

The proceeds from the sale of the existing flat cannot cover the purchase of the new BTO flat.

Sale proceeds unable to cover BTO flat price

*You need to top up the additional cash within the period HDB provides.

Timeline

Timeline for Contra Payment Facility

1. Your property agent will submit a request for a Contra Payment Facility along with the resale application.
2. You will be invited to collect the keys to the new BTO flat on or after the date of approval of your resale application.

Advantages of using the Contra Payment Facility

- Time-saving: allow you to collect your new BTO flat key and renovate it while still processing the sale of your existing flat.
- Better sale terms for your existing flat: you may not require a temporary extension of stay from your buyer.
- The wider buyer pool for your existing flat: fast sale and highest possible price.

Conclusion

The Contra Payment Facility has advantages, but there are conditions to fulfill; not all sellers are eligible. It’s always not easy to understand text-based information; therefore, I like to use an infographic to present the information. Timeline planning is important for a smooth transaction between the sale of your existing flat and the collection of your new BTO key. To avoid selling your existing flat under pressure, schedule a non-obligation discussion with me now!