{"id":62346,"date":"2022-12-09T13:11:23","date_gmt":"2022-12-09T05:11:23","guid":{"rendered":"https:\/\/www.99.co\/singapore\/insider\/?p=62346"},"modified":"2023-03-25T01:01:12","modified_gmt":"2023-03-24T17:01:12","slug":"cooling-measures-upgrade-sell-property-today","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/cooling-measures-upgrade-sell-property-today\/","title":{"rendered":"With December 2021 and September 2022 cooling measures, what can you upgrade to if you were to sell your existing property today?"},"content":{"rendered":"
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When the September 30 cooling measures<\/a> were announced, different segments of potential homebuyers and sellers were affected.<\/p>\n

For example, suppose you’re a first-time 2- or 3-bedroom HDB BTO owner who has completed your 5-year Minimum Occupation Period. In that case, you may wonder if you’ll be impacted if you sell your HDB flat in the resale market and upgrade to a larger 5-room BTO unit, HDB resale unit, EC or private condo.<\/p>\n

Another segment that may have been impacted is those who currently own a 2- or 3-room private investment condo and plan to sell it to upgrade to a 4- or 5-room HDB resale flat.<\/p>\n

\"new<\/a>
If you’ve just sold your investment condo, you will have to wait at least 15 months before buying an HDB resale flat. Exceptions have been made if you’re 55 years and older and you’re looking at 4-room units and below.<\/figcaption><\/figure>\n

To assuage your concerns here is a quick guide table on your options if you upgrade as a property owner or investor. Note that generally, the same rules should apply to your other half if you’re jointly applying for or buying with a significant other.<\/p>\n\n\n\n\n\n\n\n\n\n<\/colgroup>\n\n\n\n\n\n\n\n\n\n
Selling to upgrade? Here are some notable conditions, particularly how the December 2021<\/a> and September 2022<\/a> cooling measures would affect you<\/strong><\/td>\n<\/tr>\n
<\/td>\nIf you don’t own any property<\/strong><\/td>\nIf you own only an HDB BTO unit<\/strong><\/td>\nIf you only own an HDB resale unit<\/strong><\/td>\nIf you only own an executive condominium<\/strong><\/td>\nIf you only own a private condominium<\/strong><\/td>\nIf you only own a landed property<\/strong><\/td>\nIf you only own an overseas property<\/strong><\/td>\n<\/tr>\n
Applying for BTO<\/strong><\/td>\nYou will be subject to tightened stress-test interest rate, Total Debt Servicing Ratio (TDSR) and Loan-to-Value (LTV) limits if you’re taking a Housing Loan.<\/td>\nYou will be subject to tightened stress-test interest rate, TDSR and LTV limits if you’re taking a Housing Loan.<\/p>\n

You will also need to have completed your 5-year MOP (10 years for Prime Location Public Housing flats, or PLH).<\/p>\n

You must sell your existing HDB flat within 6 months of collecting the keys to the BTO.<\/td>\n

You will be subject to tightened stress-test interest rate, Mortgage Servicing Ratio (MSR), TDSR and LTV limits if you’re taking a Housing Loan. You will also need to have completed your 5-year MOP (10 years for PLH).<\/p>\n

You must sell your existing HDB flat within 6 months of collecting the keys to the BTO.<\/td>\n

You will be subject to tightened stress-test interest rate, MSR, TDSR and LTV limits if you’re taking a Housing Loan.<\/p>\n

You must also have completed the 5-year MOP for your EC (if it’s a new EC).<\/p>\n

You will also need to sell your existing property and wait 30 months.<\/td>\n

You will be subject to tightened stress-test interest rate, MSR, TDSR and LTV limits if you’re taking a Housing Loan.<\/p>\n

You will also need to sell your existing property and wait 30 months.<\/p>\n

If you sell your property within 3 years, you’ll need to also pay Sellers Stamp Duty (SSD).<\/td>\n

You will be subject to tightened stress-test interest rate, MSR, TDSR and LTV limits if you’re taking a Housing Loan.<\/p>\n

You will also need to sell your existing property and wait 30 months.<\/p>\n

If you sell your property within 3 years, you’ll need to also pay Sellers Stamp Duty (SSD).<\/td>\n

You will be subject to tightened stress-test interest rate, MSR, TDSR and LTV limits if you’re taking a Housing Loan.<\/p>\n

You will also need to sell your existing property and wait 30 months.<\/td>\n<\/tr>\n

Buying an HDB resale flat<\/strong><\/td>\nYou will be subject to tightened stress-test interest rate, TDSR and LTV limits if you’re taking a Housing Loan.<\/td>\nYou will be subject to tightened stress-test interest rate, MSR, TDSR and LTV limits if you’re taking a Housing Loan.<\/p>\n

You will also need to have completed your 5-year MOP.<\/p>\n

You must sell your existing HDB flat within 6 months of collecting the keys to the resale flat.<\/td>\n

You will be subject to tightened stress-test interest rate, MSR, TDSR and LTV limits if you’re taking a Housing Loan.<\/p>\n

You will also need to have completed your 5-year MOP (10 years for PLH).<\/p>\n

You must sell your existing HDB flat within 6 months of collecting the keys to the resale flat.<\/td>\n

You will be subject to tightened stress-test interest rate, MSR, TDSR and LTV limits if you’re taking a Housing Loan.<\/p>\n

You must also have completed the 5-year MOP for your EC (if it’s a new EC).<\/p>\n

You will also need to sell your existing EC and wait 30 months.<\/p>\n

This becomes 15 months if you did not use the CPF Housing Grants, excluding Proximity Housing Grants). If you’re 55 years and older, you can buy a 4-room or lower HDB resale without the 15-month waiting period.<\/td>\n

You will be subject to tightened stress-test interest rate, MSR, TDSR and LTV limits if you’re taking a Housing Loan.<\/p>\n

You will also need to sell your property and wait 15 months.<\/p>\n

If you’re 55-years and older, you can buy a 4-room or lower HDB resale without waiting. You are subject to Sellers Stamp Duty if you sell within 3 years.<\/td>\n

You will be subject to tightened stress-test interest rate, MSR, TDSR and LTV limits if you’re taking a Housing Loan.<\/p>\n

You will also need to sell your property and wait 15 months.<\/p>\n

If you’re 55-years and older, you can buy a 4-room or lower HDB resale without waiting. You are subject to Sellers Stamp Duty if you sell within 3 years.<\/td>\n

You will be subject to tightened stress-test interest rate, MSR, TDSR and LTV limits if you’re taking a Housing Loan.<\/p>\n

You will also need to sell your property and wait 15 months.<\/p>\n

If you’re 55-years and older, you can buy a 4-room or lower HDB resale without waiting.<\/td>\n<\/tr>\n

Buying a new or resale EC<\/strong><\/td>\nYou will be subject to tightened stress-test interest rate and TDSR if you’re taking a Housing Loan from a Singapore bank.<\/td>\nYou will be subject to tightened stress-test interest rate, MSR (if it’s a new EC) and TDSR if you’re taking a Housing Loan (via a financial institution like a bank).<\/p>\n

You will also need to have completed your 5-year MOP (10 years for PLH).<\/p>\n

You must sell your existing HDB flat within 6 months of collecting the keys to your new EC.<\/p>\n

If it is a resale EC (6th year from its TOP), you can retain your existing HDB flat but will be subject to ABSD.<\/td>\n

You will be subject to tightened stress-test interest rate, MSR (if it’s a new EC) and TDSR if you’re taking a Housing Loan (via a financial institution like a bank).<\/p>\n

You will also need to have completed your 5-year MOP (10 years for PLH).<\/p>\n

You must sell your existing HDB flat within 6 months of collecting the keys to your new EC.<\/p>\n

If it is a resale EC (6th year from its TOP), you can retain your existing HDB flat but will be subject to ABSD.<\/td>\n

You will be subject to tightened stress-test interest rate, MSR (if it’s a new EC) and TDSR if you’re taking a Housing Loan (via a financial institution like a bank).<\/p>\n

You will also need to have completed your 5-year MOP if it’s a new EC.<\/p>\n

As ECs are considered hybrid-public-private properties by HDB, you must sell your existing EC and wait for 30 months before buying a new EC.<\/p>\n

If you’re buying a resale EC (6th year from its TOP), you can retain your existing EC but subject to ABSD.<\/td>\n

You will be subject to tightened stress-test interest rate, MSR (if it’s a new EC) and TDSR if you’re taking a Housing Loan (via a financial institution like a bank).<\/p>\n

As ECs are considered hybrid-public-private properties by HDB, you must sell your existing private property and wait for 30 months before buying a new EC.<\/p>\n

If you’re buying a resale EC (6th year from its TOP), you can retain your existing property but subject to ABSD.<\/td>\n

You will be subject to tightened stress-test interest rate, MSR (if it’s a new EC) and TDSR if you’re taking a Housing Loan (via a financial institution like a bank).<\/p>\n

As ECs are considered hybrid-public-private properties by HDB, you must sell your existing private property and wait for 30 months before buying a new EC.<\/p>\n

If you’re buying a resale EC (6th year from its TOP), you can retain your existing property but subject to ABSD.<\/td>\n

You will be subject to tightened stress-test interest rate, MSR (if it’s a new EC) and TDSR if you’re taking a Housing Loan (via a financial institution like a bank).<\/p>\n

As ECs are considered hybrid-public-private properties by HDB, you must sell your existing overseas property and wait for 30 months before buying a new EC.<\/p>\n

If you’re buying a resale EC (6th year from its TOP), you can retain your existing overseas property.<\/td>\n<\/tr>\n

Buying a private condo<\/strong><\/td>\nYou will be subject to tightened stress-test interest rate and TDSR if you’re taking a Housing Loan from a Singapore bank.<\/td>\nYou will be subject to tightened stress-test interest rate and TDSR if you’re taking a Housing Loan from a Singapore bank.<\/p>\n

You will also need to have completed your 5-year MOP (10 years for PLH).<\/p>\n

You will be subject to higher Additional Buyer’s Stamp Duty (ABSD) as this is your 2nd property.<\/td>\n

You will be subject to tightened stress-test interest rate and TDSR if you’re taking a Housing Loan from a Singapore bank.<\/p>\n

You will also need to have completed your 5-year MOP (10 years for PLH).<\/p>\n

You will be subject to higher Additional Buyer’s Stamp Duty (ABSD) as this is your 2nd property.<\/td>\n

You will be subject to tightened stress-test interest rate and TDSR if you’re taking a Housing Loan from a Singapore bank.<\/p>\n

You will also need to have completed your 5-year MOP if your current EC is new.<\/p>\n

You will be subject to higher Additional Buyer’s Stamp Duty (ABSD) as this is your 2nd property.<\/td>\n

You will be subject to tightened stress-test interest rate and TDSR if you’re taking a Housing Loan from a Singapore bank.<\/p>\n

You will be subject to higher Additional Buyer’s Stamp Duty (ABSD) as this is your 2nd property.<\/td>\n

You will be subject to tightened stress-test interest rate and TDSR if you’re taking a Housing Loan from a Singapore bank.<\/p>\n

You will be subject to higher Additional Buyer’s Stamp Duty (ABSD) as this is your 2nd property.<\/td>\n

You will be subject to tightened stress-test interest rate and TDSR if you’re taking a Housing Loan from a Singapore bank.<\/td>\n<\/tr>\n
Buying a landed property<\/strong><\/td>\nYou will be subject to tightened stress-test interest rate and TDSR if you’re taking a Housing Loan from a Singapore bank.<\/td>\nYou will be subject to tightened stress-test interest rate and TDSR if you’re taking a Housing Loan from a Singapore bank.<\/p>\n

You will also need to have completed your 5-year MOP (10 years for PLH).<\/p>\n

You will be subject to higher Additional Buyer’s Stamp Duty (ABSD) as this is your 2nd property.<\/td>\n

You will be subject to tightened stress-test interest rate and TDSR if you’re taking a Housing Loan from a Singapore bank.<\/p>\n

You will also need to have completed your 5-year MOP (10 years for PLH).<\/p>\n

You will be subject to higher Additional Buyer’s Stamp Duty (ABSD) as this is your 2nd property.<\/td>\n

You will be subject to tightened stress-test interest rate and TDSR if you’re taking a Housing Loan from a Singapore bank.<\/p>\n

You will also need to have completed your 5-year MOP if your current EC is new.<\/p>\n

You will be subject to higher Additional Buyer’s Stamp Duty (ABSD) as this is your 2nd property.<\/td>\n

You will be subject to tightened stress-test interest rate and TDSR if you’re taking a Housing Loan from a Singapore bank.<\/p>\n

You will be subject to higher Additional Buyer’s Stamp Duty (ABSD) as this is your 2nd property.<\/td>\n

You will be subject to tightened stress-test interest rate and TDSR if you’re taking a Housing Loan from a Singapore bank.<\/p>\n

You will be subject to higher Additional Buyer’s Stamp Duty (ABSD) as this is your 2nd property.<\/td>\n

You will be subject to tightened stress-test interest rate and TDSR if you’re taking a Housing Loan from a Singapore bank.<\/td>\n<\/tr>\n
Buying an overseas property<\/strong><\/td>\nYou will be subject to tightened stress-test interest rate and TDSR if you’re taking a Housing Loan from a Singapore bank.<\/td>\nYou will be subject to tightened stress-test interest rate and TDSR if you’re taking a Housing Loan from a Singapore bank.<\/p>\n

You will also need to have completed your 5-year MOP (10 years for PLH).<\/td>\n

You will be subject to tightened stress-test interest rate and TDSR if you’re taking a Housing Loan from a Singapore bank.<\/p>\n

You will also need to have completed your 5-year MOP (10 years for PLH).<\/td>\n

You will be subject to tightened stress-test interest rate and TDSR if you’re taking a Housing Loan from a Singapore bank.<\/p>\n

You will also need to have completed your 5-year MOP if your current EC is new.<\/td>\n

You will be subject to tightened stress-test interest rate and TDSR if you’re taking a Housing Loan from a Singapore bank.<\/td>\nYou will be subject to tightened stress-test interest rate and TDSR if you’re taking a Housing Loan from a Singapore bank.<\/td>\nYou will be subject to tightened stress-test interest rate and TDSR if you’re taking a Housing Loan from a Singapore bank.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Do note that other eligibility conditions<\/a> not mentioned here, like the applicant’s age, nationality<\/a>, type of scheme applied<\/a>, housing grants<\/a>, income ceiling, past housing history and so on, apply for different scenarios.<\/em><\/p>\n

\"Seller<\/a><\/p>\n

IF YOU…<\/h2>\n

1) Don’t own any property<\/h2>\n

As a first-time property owner, eligibility will mainly be focused on your age, nationality, scheme (joint or single) and income ceiling.<\/p>\n

Cooling measures-wise, you’ll be impacted if you apply for a housing loan, which means tightened stress-test interest rates<\/a>, and loan-to-value limits<\/a>.<\/p>\n

For stress-test interest rates, this has been increased as of 30 September 2022, from 2.6% to 3% for HDB loans and 3.5% to 4% for bank loans. Stress-test interest rates or interest rate floors are used to calculate your loan quantum to ensure affordability.<\/p>\n

For loan-to-value limits, this has been reduced from 85% to 80% for HDB housing loans as of September 30. For loans from financial institutions, the LTV limit remains at 75% (since 2018’s cooling measures). Stricter LTV limits mean lower borrowing amounts (and thus, the potential need to fork out a higher downpayment in cash and CPF or find a lower-priced alternative).<\/p>\n

If you’re servicing other loans like unsecured credit cards or car loans, your Total Debt Servicing Ratio (TDSR)<\/a> will be critical, as your total debt obligations cannot exceed 55% of your monthly income.<\/p>\n

2) Only own an HDB BTO unit<\/h2>\n

If you only own a BTO unit and you’re applying for another BTO unit, you must first complete your 5-year Minimum Occupation Period (MOP) (10 years if it’s a PLH unit<\/a>).<\/p>\n

You must also dispose of your existing HDB unit within 6 months of collecting the keys to your new BTO unit, as you’re not allowed to own two HDB flats at any time.<\/p>\n

This applies to buying HDB resale flats and new ECs as well.<\/p>\n

If you’re buying a resale EC (6th year from its TOP), you can retain your existing HDB. Note that only Singaporeans and Singapore PRs can buy a resale EC from its 6th to 10th year. Foreigners can buy resale ECs when it becomes fully private from their 11th year onwards. Naturally, ABSD on your 2nd property applies if you keep your HDB flat.<\/p>\n

If you’re buying a private property, like a private condo or landed house, you can retain your HDB flat.<\/p>\n

You can apply for up to two subsidised housing flats (ie. flats bought using CPF Housing Grant) but you’ll need to pay a resale levy<\/a> on your second subsidised flat.<\/p>\n

\"\"<\/p>\n

3) Only own an HDB resale unit<\/h2>\n

Most policies in owning a BTO unit apply if you’re an existing HDB resale owner.<\/p>\n

One area to note if you’re applying for an HDB housing loan is that you’ll also be subject to the Mortgage Servicing Ratio<\/a>, or MSR, where the maximum mortgage you can pay is 30% of your monthly income. This applies to new ECs as well.<\/p>\n

Similar to owning a BTO unit, you can retain your HDB resale unit if you’re buying a resale EC from its 6th year onwards. The resale EC will be treated as a 2nd property and you’ll be subject to ABSD. This would similarly apply if you’re buying private property in Singapore and has no intention of selling your existing HDB resale flat.<\/p>\n

Properties for sale<\/h4>\n
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