Selling and Buying an HDB Concurrently: Proven Tips to Benefit from Enhanced Contra Facility (ECF)

Summary

In this insightful video, Shawn, a senior advisor, explains the enhanced contra payment facility for HDB transactions in Singapore. He clarifies how homeowners can utilize this mechanism to seamlessly buy a new BTO while selling their current resale flat. Through a relatable case study of a family, Shawn highlights the eligibility requirements and processes involved in leveraging this facility. The session concludes with a Q&A segment addressing common queries, including the applicability for Singapore Permanent Residents, while encouraging viewers to explore additional resources on the topic.

Takeaways

• 😀 The contra payment facility allows homeowners to use the sale proceeds from their current HDB flat to finance the purchase of a new BTO flat.
• 🏡 Homeowners can reduce cash outlay and mortgage loans required for a new property by utilizing the enhanced contra facility.
• 📊 A case study illustrates a family selling their resale flat to purchase a BTO flat, showcasing the practical application of the contra payment facility.
• 📝 To qualify for the contra payment facility, homeowners must have booked a new flat, received an invitation to collect keys, and submitted an application to sell their current flat.
• 💡 Singapore Permanent Residents (SPR) can use the contra payment facility if certain criteria are met, particularly regarding mortgage discharge and financial institution involvement.
• 📞 Viewers are encouraged to reach out for personalized consultations via email or phone for further assistance with their housing queries.
• 🔍 The session aims to simplify complex financial terms related to HDB transactions, making it accessible to the average homeowner.
• 🌐 Additional resources, such as a crash course on buying HDB flats, are available on their Facebook page for interested viewers.
• 👨‍👩‍👦 The target audience includes families looking to upgrade or change their living situation, particularly in the HDB housing market.
• 🙌 The discussion fosters community engagement by inviting questions and providing support for homeowners navigating the real estate landscape.

Q & A

What is the contra payment facility?

The contra payment facility allows homeowners to use the proceeds from the sale of their current home to finance the purchase of a new flat, such as a BTO, thereby reducing the cash outlay needed for mortgage loans.

Who can qualify for the contra payment facility?

To qualify for the contra payment facility, homeowners must have booked a new BTO, received an invitation to collect keys, and submitted an application to sell their current property.

Can Singapore Permanent Residents (SPR) use the contra payment facility?

Yes, Singapore Permanent Residents can use the contra payment facility if there is no involvement from financial institutions, and their mortgage has been discharged.

What steps must a homeowner take to use the contra payment facility?

Homeowners must book a new BTO, apply to sell their current flat, and wait for an invitation to collect keys for the new property.

What are the advantages of using the contra payment facility?

The contra payment facility helps reduce the immediate cash required for purchasing a new home by allowing the sale proceeds of the current home to be used as part of the financing.

In the case study presented, what is the family’s situation?

The family consists of a husband and wife, both 38 years old, with a child in primary school. They plan to sell their current resale flat to purchase a new BTO.

What is the significance of the timing in the contra payment process?

Timing is crucial; homeowners must have completed their BTO booking and be ready to sell their current flat concurrently to effectively use the proceeds for the new purchase.

What should homeowners do if they have more questions about the contra payment facility?

Homeowners can reach out for one-on-one consultations by emailing [email protected] or calling the provided contact number for personalized assistance.

What additional resources were mentioned for homeowners interested in HDB purchases?

Viewers were encouraged to check the company's Facebook page for other useful topics, including a crash course on buying HDB flats and information about selling various HDB types in different zones.

Why was the session deemed insightful for the audience?

The session simplified complex concepts related to the contra payment facility, making it more understandable for homeowners who were previously unaware of their options in upgrading or purchasing new flats.