{"id":8331,"date":"2016-12-23T08:00:06","date_gmt":"2016-12-23T00:00:06","guid":{"rendered":"https:\/\/www.99.co\/blog\/singapore\/?p=8331"},"modified":"2022-07-01T04:05:32","modified_gmt":"2022-06-30T20:05:32","slug":"loss-buying-hdb-flat","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/loss-buying-hdb-flat\/","title":{"rendered":"How to get another HDB flat (after you\u2019ve lost the first one)"},"content":{"rendered":"
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You may lose your HDB flat to the state, if you haven’t planned carefully enough<\/figcaption><\/figure>\n

Whether it\u2019s through divorce or missed bank mortgages, you lost the first HDB flat. The good news is that HDB is quite forgiving \u2013 once you\u2019ve recovered, you will probably have a chance to own a second one. Here are some of the things you need to know, before trying a second time:<\/span><\/p>\n

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    If you were previously bankrupt, but have since recovered financially, you might still need to wait a few years<\/b><\/h3>\n<\/li>\n<\/ol>\n

    If you were previously declared bankrupt (or declared it yourself) and lost the HDB flat, you may now have recovered. However, you may not be able to obtain a HDB loan right away, and an immediate bank loan is out of the question.<\/span><\/p>\n

    To get a second loan, you must first obtain a Letter of Discharge from bankruptcy. This is issued by the court, once you have met the conditions of your Official Assignee (OA).<\/span><\/p>\n

    For local banks, you will have to wait five years from being issued the Letter of Discharge, before you are eligible for a loan. For foreign banks, you may have to wait up to seven years. Non-banking financial institutions, such as Hong Leong, <\/span>may <\/span><\/i>grant you a loan as long as you have a Letter of Discharge; but this depends on their credit officer\u2019s assessment of your situation.<\/span><\/p>\n

    For HDB, there is a chance you will not be given a <\/span>HDB Concessionary loan<\/span><\/a> right after you have been discharged from bankruptcy (it will show on your credit report). However, you can make the request anyway and explain your situation. <\/span><\/p>\n

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      If you have taken two or more HDB loans previously, you will have to approach the bank<\/b><\/h3>\n<\/li>\n<\/ol>\n

      If, for whatever reason, you have already taken two or more HDB concessionary loans, you will not be able to get another one. Any loan to purchase a flat will have to come from the <\/span>bank instead<\/span><\/a>. <\/span><\/p>\n

      Apart from a different rate*, this means you will be faced with a <\/span>higher down payment<\/span><\/a>. While HDB loans can finance up to 90 percent of your flat, bank loans can only finance up to 80 percent. Of the remaining 20 percent, up to 15 percent can come from a combination of cash or CPF. The remaining 5 percent must be paid in cash.<\/span><\/p>\n

      For example, if you are buying a $300,000 flat, and you cannot get another HDB loan, you must have up to $45,000 in cash and \/ or CPF, and an absolute minimum of $15,000 in cash.<\/span><\/p>\n

      In addition to this, you must meet the usual requirements to qualify for a loan (e.g. your monthly repayments must not exceed 60 percent of your monthly income, in combination with your other debt obligations).<\/span><\/p>\n

      (*<\/span>HDB concessionary loan rates are 2.6 percent per annum and seldom change. Bank loan rates currently average 1.8 percent per annum, but are subject to fluctuations<\/span><\/i>).<\/span><\/p>\n

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        There is now a Fresh Start Housing Scheme for Second Timers<\/b><\/h3>\n<\/li>\n<\/ol>\n

        HDB has a Fresh Start Housing Scheme for second-timers to own a flat again. However, there are certain requirements you need to meet. You must:<\/span><\/p>\n