HDB Contra | Useful Scheme for HDB Second Time Buyers
Looking to downgrade or upgrade your HDB to another HDB and wondering how to go about doing it?
Not to worry, we are here to share some useful tips that can help you in this process – specifically this HDB Contra Scheme.
Many second-time home buyers face similar concerns too.
Here’s a list of the most common questions we hear from our clients all the time:
- How do you sell an existing HDB flat and buy a new one?
- Should I sell my HDB flat first or buy first?
- How long is the process of selling and buying HDB flats?
“Rick was introduced by a close friend of mine. This is my second time buying a flat (first time was 20 years ago) and I have forgotten all the procedure. With no experience dealing with selling and buying, this is my honest testimonial.
Rick is a very responsible agent which I’ve met so far.
Fast response to all my enquiries and he answered to all my doubts which I have.
Reliable and he knows exactly what to do and will give you his utmost advise and service.
I highly reckon Rick to those have the intention of getting property agent.
Thanks so much Rick for the help and assistance you have rendered from start until the end of transaction. I would definitely recommend you to my relatives and friends. Cheers
selling and buying
Table of Contents
What is the HDB Contra Scheme about?
What does that mean for you (the seller and second-time home buyer)?
It means you will need to pay a much lesser amount of cash upfront for your new HDB flat and get a reduced mortgage loan for the new flat.
Why? Because the proceeds from your old home will be used automatically to pay for the new home including the insurance premiums for the CPF Home Protection Scheme.
How does the HDB Contra Scheme work in real life?
Still unclear about how it works? No problem. We’ll use a simple case study to illustrate how the HDB Contra Scheme can work for you.
- Group A – Aaron (Potential Buyer): Wants to buy your existing HDB flat
- Group B – You (Seller of existing HDB and buyer of next HDB): Wants to buy Cherrie’s HDB flat
- Group C –Cherrie (Seller of Cherrie’s HDB): Wants to sell her HDB flat to you
If you apply for the Enhanced Contra Facility, Aaron and Cherrie will not be eligible to apply for their own sale and purchases.
Conditions for applying Enhanced Contra Facility
Like all government schemes and grants, there are conditions for applying.
Do remember to check if you fulfil these necessary conditions before going ahead with this.
- You can apply for the ECF (Enhanced Contra Facility) if you are selling your existing HDB flat and buying an HDB resale flat. However, the buyer of your flat and the seller of your new flat cannot apply for this same scheme.
- You cannot be an undischarged bankrupt or have any bankruptcy proceedings against you. HDB may not approve the ECF application if any of the following apply:
- There is a mortgage in favour of a financial institution
- There is a CPF mortgage/ charge on Flat A and/ or Flat B
- Private solicitors must be engaged
- ECF is not available for the following types of resale applications:
- Conversion Scheme
- Sale of part-share of an existing flat
- Contra party buys another resale flat using a housing loan from a bank
- The resale of Flat A must be completed before or on the same day as the completion of the resale of Flat B
“It was a pleasure working with Rick throughout my selling and upgrading journey.
His recommendations and knowledge of financial calculations and preparations are impressive – even factoring in risk management specific to us, for the next 5 to 8 years.
He has shown his expertise in real estate and guided us step by step all the way, making transactions effortless for us.
Well done Rick!
Buyer - Riverfront residences
Step by step guide to apply for HDB Contra
1) Log in to HDB Resale Portal and register your Intent to Sell.
2) Starts marketing your HDB flat for sale.
It can be done either DIY or by engaging a real estate agent to facilitate the two-way negotiations.
3) Upon successfully finding a Buyer (Group A), you can grant the Buyer (Group A) an Option To Purchase (OTP).
Must use the HDB prescribed (OTP) Option to Purchase as the form of contract in resale transactions. Do note, the Option Period for the (OTP) Option to Purchase is 21 days.
Buyer must exercise the OTP within that period, if not the deposit will be forfeited.
4) Following that you should register an Intent to Buy in the HDB Resale Portal and start looking for next HDB flat.
5) Upon successfully finding a flat you would like to purchase, Seller of the new house (Group C), will need to grant an Option to Purchase (OTP) to you.
6) All Groups, Sellers and Buyers, will submit a Resale Application within a previously agreed timeframe. Group B will indicate in Resale Application that he/she is applying for ECF.
7) Upon approval (HDB’s Approval Letter is posted in the HDB resale portal), the buyers and sellers will be notified via SMS or E-mail.
8) HDB completion normally is scheduled after 8 weeks from the date of Acceptance of the resale application after the required documents are submitted successfully.
HDB contra calculator
SRX x-value is only one of several ways I help my clients obtain an indicative valuation of their homes and assist them with the financial calculation.
You can calculate the finances with the estimated price for your home.
HDB contra timeline
This is the timeline for selling or buying a HDB.
You can use this as a reference to plan for HDB contra timeline.
Selling and buying a HDB in 2022?
Do you know that HDB prices have gone up 17% past two years?
2022 might be the right year for you to plan for the next home.
Bonus for my readers
A Warm Hello From Your Property Consultant
Hey, I’m Rick! A property consultant and your host for this one-time sharing session.
While I wholeheartedly admit that I hope to be engaged and be part of your property journey, I also need you to know that, like you…
– I don’t like sales pitches and being forced into selling and buying
– I am looking forward to working with down to earth people
– Looking forward to a happy property journey
Turning a client/service relationship into a long term friendship
So, if you have been looking for a trustworthy and honest realtor to begin with, this sharing session just might be the start of your property journey.
Applying is simple!
- Click the SCHEDULE button
- Allow me 30min of your time
- To go from having questions in your mind to understanding the options available
See you soon!
My husband and I started our home-search by ourselves but was met with issues soon enough as we were unsure of the important things and areas to look out for and we were also not experienced in the negotiation process with the seller’s representing agent. Soon after hearing our problems, I was introduced to Rick by a friend. The entire buying process quickly became swift and smooth; Rick understands our needs, puts our personal interest first, seals us a good deal and educated us along the way about the important things and areas to pay attention to. Thumbs up to Rick and we will recommend him to anyone for their home-search
Jo & Jeffery
Buyer - Blk 452a Sengkang
I have successfully helped hundreds of homeowners just like you since 2010
Have you learned something New Today? Please help to share.
Rick Long, Associate Division Director of Huttons Asia Pte Ltd, has been in the Real Estate industry for more than a decade.
He is driven, committed and is enthusiastic about real estate investments.
Today, he leads Team Youhome.sg, and together, he aims to provide his clients with the best experience in their property journey.
Well-equipped with expertise in residential properties, Rick often impressed his clients with knowledge of market trends, advising on timelines, financial calculations and best options for his clients.
Amidst the hustle and bustle, Rick enjoys quiet time and indulges himself in the intricate art of tea-brewing and teapot appreciation.
He would also take this chance to energize himself and reflect on his personal development and areas of improvement.
He is also a proud fur daddy to 2 rescue kitties and loves spending his free time with his wife and furbabies.
Ever wonder if you are suitable for Sell one buy two investment concept? – Read more (Sell one buy two)
Is buying new launch or resale condo have better returns? – Read more (New Launch vs Resale condo)
Looking to upgrade from Hdb to condo? – Read more (Sell Hdb buy condo)
What to take note when selling Hdb resale flat? – Read more (Hdb Resale Process)
Buying another Hdb flat, and using the fund from current home? – Read more (Hdb contra)
Why do some Hdb flat price depreciate so much? – Read more (Hdb depreciation curve)
What is one of the most common reason for property negative sales? – Read more (Cpf accrued interest)
Financial calculation for selling a Hdb flat? – Read more (Hdb resale calculator)
Buying EC before selling your HDB? – Read more (Upgrade to EC before selling your HDB)
Should you sell your EC after 5 years? – Read more (Selling EC)