How Much Cash To Buy Resale HDB In 2024

How Much Cash To Buy Resale HDB

If you are looking to purchase a resale HDB flat, one of the first financial hurdles you will encounter is the downpayment. Understanding the downpayment requirements is essential for budgeting and ensuring that you have sufficient funds to proceed with the purchase.

If you are a first-time home buyer or just want to look out for more information, this article provides a comprehensive guide on how much cash to buy resale HDB flat, considering:

  • Downpayment calculations
  • Financial planning
  • Grants, transaction processes
  • Associated legal fees

Whether you’re a first-time buyer or looking to upgrade, it’s crucial to be well-informed about these aspects to make a sound investment.

Key Takeaways

  • The minimum downpayment for a resale HDB flat is 25% of the purchase price, which can be paid with cash, CPF savings, or a combination of both, depending on the loan type.
  • Creating a comprehensive financial plan is essential before purchasing a resale HDB flat, considering budget, financing options, and overall financial goals.
  • First-time buyers may be eligible for higher loan amounts and lower downpayments, as well as various CPF housing grants and subsidies to help make the purchase more affordable.
  • Additional costs when buying a resale HDB flat include stamp duty and legal fees, which are necessary to factor into your budget.
  • The resale transaction process involves multiple steps, including Resale Application approval, payment of the remaining purchase price, signing of documents, and transfer of ownership.

Calculating the Downpayment to buy resale hdb

How Much Cash To Buy Resale HDB
How Much Cash To Buy Resale HDB In 2024 1

To calculate the downpayment, start by determining the purchase price of the flat. Then, consider the loan-to-value (LTV) limit of your loan, which dictates the maximum percentage of the purchase price that can be financed. Subtract any CPF savings you intend to use from the purchase price and apply the LTV limit to the remaining amount to find out the cash or CPF funds needed upfront.

The downpayment can be a significant sum, and it’s crucial to plan for it early in the home-buying process. Part of the downpayment is paid when you sign the Agreement for Lease; the rest is due at key collection.

Remember that resale flats can offer immediate occupancy and a variety of locations, but they may also come with higher upfront costs compared to BTO flats. It’s important to weigh these factors, along with the potential for asset progression in established neighborhoods, when deciding between a BTO and a resale HDB flat.

Options for Financing the Downpayment

When planning to finance the downpayment for a resale HDB flat, it’s essential to evaluate your available resources. You can utilize your CPF Ordinary Account (OA) to cover a significant portion of the downpayment, ensuring that your cash reserves are not overly depleted. Here are some options to consider:

  • CPF Savings: Your CPF OA savings can be used to pay for the downpayment, monthly mortgage payments, and other related costs.
  • Cash Reserves: Assess how much cash you can comfortably use without compromising other financial commitments.
  • HDB Loan: With an HDB loan, the downpayment is 10% of the purchase price, payable via CPF or cash.
  • Bank Loan: For a bank loan, the downpayment is typically 25% of the purchase price, also payable with CPF or cash.

It’s important to balance the use of CPF funds and cash to maintain financial flexibility for future needs.

Remember, the downpayment amount may vary depending on the loan type. With a bank loan, if you borrow up to 75% of the purchase price, your downpayment will be 25%. However, borrowing more than 75% increases the downpayment requirement. Always prepare your HDB flat for sale by considering the market value and potential upgrades that could enhance its appeal to buyers.

Impact of Loan Types on Downpayment Amounts

The type of loan you choose for your resale HDB flat purchase significantly affects the downpayment required. For HDB loans, the downpayment is set at 10% of the purchase price, which can be paid using CPF savings, cash, or a combination of both. In contrast, opting for a bank loan increases the downpayment to 25% of the purchase price, also payable through CPF, cash, or both.

The choice between an HDB loan and a bank loan not only influences the downpayment but also the flexibility in financing options.

Here’s a quick comparison of downpayment requirements based on loan type:

Loan TypeDownpaymentPayment Methods
HDB Loan10%CPF, Cash
Bank Loan25%CPF, Cash

It’s essential to consider your financial situation and long-term plans when deciding on a loan type. While HDB loans offer a lower downpayment, bank loans might provide other benefits that align with your needs.

How Much Cash To Buy Resale HDB

Financial Planning for Your Resale HDB Purchase

Before diving into the property market, it’s crucial to establish a budget that aligns with your financial capabilities and goals.

This includes considering your current assets, income, and potential loans. A clear plan will guide your property investment decisions and help you navigate the complexities of the market, such as comparing new launch vs resale condos.

When assessing your CPF and cash outlay, utilize tools like HDB’s online calculators to estimate your available CPF funds and the housing loan amount you may require. It’s important to factor in both your CPF savings and cash reserves to ensure a balanced approach to financing your purchase.

Your financial plan should also reflect your long-term objectives. Whether you intend to reside in your resale flat indefinitely or consider selling it after a few years, your plan must account for these future aspirations. This foresight will aid in determining an appropriate spending limit on the flat and in planning for future savings.

Remember, the financial planning stage is not just about numbers; it’s about setting a foundation for a secure and prosperous future. It’s a step that precedes the actual buying procedure for resale flats, which includes planning, sourcing, and contracting.

Assessing Your CPF and Cash Outlay

When planning to purchase a resale HDB flat, it’s crucial to assess your CPF savings and cash reserves. Your CPF Ordinary Account (OA) can be a significant source of funding for the downpayment and monthly mortgage payments. To estimate the property price you can afford and the housing loan you might need, handy CPF calculators and resources are available for precise planning.

  • CPF Ordinary Account (OA): Used for downpayment and mortgage payments.
  • Cash Reserves: Necessary for upfront costs and to maintain liquidity.

Remember, the minimum cash downpayment is 5% of the purchase price. For instance, a flat costing $500,000 would require at least $25,000 in cash. It’s also wise to consider factors such as the type and location of the property, as these can affect the property’s value over time.

Your financial goals, whether you aim for long-term residence or plan to sell the property after a few years, will influence how much you should allocate towards the purchase and future savings.

Eligibility for Loans & Grants for First-Time Buyers

Eligibility for Loans & Grants for First-Time Buyers
How Much Cash To Buy Resale HDB In 2024 2

First-time buyers have a distinct advantage when it comes to purchasing a resale HDB flat, with access to various loans and grants designed to make homeownership more attainable. Eligibility for these financial aids is crucial in planning your purchase.

For instance, the HDB housing loan and Enhanced CPF Housing Grant require you to be working at the point of obtaining your HFE letter, ensuring your income can be considered for these supports.

To qualify for the Singles Grant, you must meet specific criteria, such as:

  • Being at least 35 years old and unmarried
  • Divorced
  • Widowed

This grant is tailored for individuals looking to buy a new or resale flat on their own. It’s important to note that if you have disposed of private property, there must be a 30-month gap before submitting your HFE letter to be eligible for CPF housing grants.

When applying for financial assistance, the HDB will inform you of the final grant amount and loan eligibility during the HFE letter process. This transparency helps in accurately planning your finances.

For those who have previously utilized a CPF Housing Grant, options like the Top-Up Grant are available to supplement your purchase. However, remember that if you’ve benefited from HDB resale grants before, you may not be eligible for them again as a second-time homeowner.

Navigating Additional Costs and Grants

When embarking on the journey to purchase a resale HDB flat, it’s crucial to be cognizant of the additional costs that accompany the price of the flat itself. These costs can significantly impact your overall budget and should be carefully considered in your financial planning.

  • Stamp Duty: A mandatory tax paid on the purchase price or market value of the property, whichever is higher.
  • Legal Fees: Costs incurred for legal services during the conveyance process.
  • Renovation Costs: Expenses for refurbishing your new home to your liking.
  • HDB Conveyance Fees: Fees charged by HDB for processing the transaction.

Remember, while these costs add to the financial burden of acquiring a resale flat, various grants and subsidies are available to alleviate some of the financial strain.

Eligibility for CPF housing grants and subsidies can provide significant relief, potentially offsetting a portion of these additional expenses. It’s advisable to explore all available options, such as the Enhanced CPF Housing Grant (EHG) and the Proximity Housing Grant (PHG), which can offer up to S$40,000 and S$15,000 respectively for eligible buyers.

Understanding CPF Housing Grants and Subsidies

The CPF Housing Grant Scheme is a pivotal component in making resale HDB flats more affordable for Singaporeans. Eligible buyers may receive a subsidy of up to $80,000, which can significantly reduce the financial burden of purchasing a home. The Enhanced CPF Housing Grant (EHG) is particularly noteworthy, offering up to $80,000 for families with monthly incomes of up to $9,000.

The Proximity Housing Grant (PHG) further supports family cohesion by providing up to $30,000 for families purchasing resale flats near their parents or children.

Eligibility for these grants is subject to specific criteria, such as household income limits and family nucleus composition. For instance, to qualify for the full CPF Housing Grants for Resale Flats (Families), your family nucleus must include at least one Singapore Citizen and your average gross monthly income must not exceed $14,000. Additionally, the grant amount may vary for second-time homeowners or those with a change in family status.

Here’s a quick overview of potential grant amounts for different family configurations:

  • First-timer household (both Singapore Citizens): $50,000
  • First-timer household (one Singapore Citizen, one Singapore Permanent Resident): $40,000
  • First-timer and second-timer couples: $25,000

Remember, the final grant amount and eligibility for an HDB loan will be confirmed when you apply for your HDB HFE letter.

Strategies to Offset Additional Costs with Grants

When considering the purchase of a resale HDB flat, it’s crucial to explore the various grants and subsidies that can significantly reduce your financial burden. The CPF Housing Grant Scheme, for instance, offers up to $80,000 in subsidies, which can be a game-changer for your budget. Here’s a quick rundown of the grants available:

  • Enhanced CPF Housing Grant (EHG): Up to $80,000 for eligible families.
  • Proximity Housing Grant (PHG): Up to $30,000 for families purchasing near parents or children.
  • Top-Up Grant: For those who previously received a CPF Housing Grant (Singles).

Remember, these grants are subject to eligibility conditions, such as income ceilings and family nucleus requirements. It’s advisable to check the latest updates on the HDB website or consult with HDB officers to understand how you can benefit from these grants.

While additional costs such as stamp duty and legal fees are inevitable, leveraging housing grants can alleviate a significant portion of these expenses. Ensure you factor in these grants when planning your finances for a resale HDB purchase.

Lastly, for couples, there are various housing grants designed to assist with the cost of acquiring a new home, whether it’s a BTO or a resale flat. It’s worth investigating these opportunities to maximize your savings and make your dream home more affordable.

Steps Involved in Completing the Resale Transaction

image 113
Photo taken from HomeRenoGuru

The journey to purchasing a resale HDB flat involves a series of critical steps that must be meticulously followed to ensure a successful transaction. Once HDB has approved your Resale Application, the path to homeownership is clear, but several important actions remain.

  • Step 1: Register your Intent to Sell, confirming your eligibility and informing you of the earliest date to grant an OTP.
  • Step 2: Obtain the Option to Purchase (OTP) from the seller and pay the required Deposit, typically 4% of the purchase price.
  • Step 3: Submit the Resale Application to HDB, including necessary forms like the Resale Checklist and supporting documents such as identity cards and income statements.
  • Step 4: Endorse all required documents and pay the Resale Application Fee, which is generally $80.
  • Step 5: Await HDB’s acceptance of the resale application, which usually takes about 8 weeks.
  • Step 6: Complete the payment of the remaining purchase price, sign the resale documents, and transfer ownership.

The resale transaction process can be complex, but understanding the steps and associated fees is crucial for a smooth transition to your new home.

Understanding the Timeline and Payment Schedules

When embarking on the journey to purchase a resale HDB flat, it’s crucial to have a clear understanding of the timeline and payment schedules involved. The booking exercise commences from 4 weeks after the release of the ballot results and can span several months, depending on various factors such as flat supply.

The downpayment for a resale HDB flat is typically paid within 8 weeks from the date the Option to Purchase (OTP) is exercised, using either cash or CPF savings.

Once you’ve found your ideal flat and are ready to commit, you’ll need to endorse all the HDB resale documents within 6 days of receiving the confirmation SMS. Following this, an in-principle approval for your purchase will be issued. The entire resale transaction process includes several key steps:

  • Submitting the Resale Application
  • Endorsing the necessary documents
  • Receiving in-principle approval
  • Completing the payment schedule

Each step has its own set timeframe and requirements, which are essential to adhere to for a smooth transaction. For instance, the Resale Application should be submitted within an agreed number of days between the seller and buyer, typically involving a fee ranging from $40 to $80.

Ownership Transfer and Legal Considerations

When transferring ownership of a resale HDB flat, it’s crucial to understand the legal nuances and requirements. Ownership transfer is not merely a transactional process; it involves legal considerations that ensure the rights and responsibilities are appropriately transferred. For instance, the HDB stipulates that a change in flat ownership (not through a sale) can only occur among eligible family members, which includes spouses, parents, children, or siblings.

The manner of holding the flat and the eligibility conditions for proposed flat owners are key factors in the transfer process. It’s important to ensure that all parties meet the HDB’s criteria for a change in ownership.

Additionally, there are specific procedures to follow when there’s a change in ownership without monetary consideration. This might involve a resale of part-share or other forms of ownership restructuring, subject to meeting HDB’s conditions. Legal advice should be sought to navigate these complexities and to understand the implications of such changes on your rights as a flat owner.

Stamp Duty and Legal Fees Explained

image 115
Photo taken from PropertySaleSingapore

When acquiring a resale HDB flat, one of the key financial considerations is the Buyer’s Stamp Duty (BSD). This tax is levied on the purchase price or market value of the property, whichever is higher. The BSD rates are tiered and apply as follows:

  • For the first $180,000 of the property value, the BSD rate is 1%.
  • The next $180,000 is subject to a 2% BSD rate.
  • Subsequent amounts up to $1,000,000 incur a 3% rate.
  • Any value above $1,000,000 attracts a 4% BSD rate.

It’s essential to accurately calculate the BSD as it constitutes a significant portion of the upfront costs. To assist with this, the Inland Revenue Authority of Singapore (IRAS) provides a Stamp Duty Calculator on the myTax Portal.

Remember that while the BSD is a mandatory cost, you may be eligible for CPF housing grants and subsidies which can help to alleviate the financial burden. Always ensure to factor in these potential savings when planning your purchase.

Overview of Legal Fees and Conveyancing Costs

When purchasing a resale HDB flat, legal fees and conveyancing costs are essential components of the overall expenses. Conveyancing fees are the charges for the legal work required to transfer the ownership of the property from the seller to the buyer. These fees can vary depending on the complexity of the transaction and the law firm involved.

Typically, conveyancing fees for an HDB resale flat transaction are approximately $2,000 to $3,000 when using CPF funds. In addition to conveyancing fees, buyers should also be aware of other miscellaneous costs such as the valuation fee and the HDB resale application fee.

It’s crucial to account for these legal and administrative expenses when budgeting for your resale HDB purchase to avoid any unexpected financial strain.

Here is a breakdown of the potential legal and conveyancing costs:

  • Conveyancing Fee: Approximately $2,000 – $3,000 (CPF)
  • Valuation Fee: Around $120 (Cash)
  • HDB Resale Application Fee: $80 (Cash)

Remember to consult with your appointed law firm for the precise fees and ensure that you have the necessary funds available in your CPF account or in cash to cover these costs.

How to Budget for Stamp Duty and Legal Fees

When planning to purchase a resale HDB flat, it’s crucial to budget for stamp duty and legal fees effectively. These costs are often overlooked but can significantly impact your overall financial planning. Stamp duty is a tax levied on the purchase price of your property, calculated on a sliding scale from 1% to 4%. Legal fees cover the conveyancing process and are typically around $2,000.

To ensure you’re prepared, follow these steps:

  1. Determine the purchase price of the resale HDB flat.
  2. Calculate the Buyer’s Stamp Duty (BSD) based on the purchase price.
  3. Factor in the Additional Buyer’s Stamp Duty (ABSD) if applicable.
  4. Include conveyancing fees, which are generally a fixed cost.
  5. Set aside a contingency fund for any unforeseen expenses.

Remember, these costs are in addition to your downpayment and loan repayments. It’s essential to account for them to avoid any surprises during the transaction process.

By taking into account all these expenses, you can create a comprehensive budget that will guide you through the financial aspects of purchasing a resale HDB flat.


Prospective buyers must be prepared to cover additional costs such as stamp duty and legal fees. The minimum downpayment is typically 25% of the purchase price, which can be paid using cash, CPF savings, or a combination of both. First-time buyers may benefit from higher loan amounts and lower downpayments, as well as various CPF housing grants and subsidies designed to make homeownership more accessible.

That said, it’s crucial to have a solid financial plan in place, assess your budget, and understand the financing options available to you. By doing so, you can navigate the complexities of the resale transaction process and secure your dream home within your financial means.

Aaron Oon is a Senior Associate Director at Propnex and Founder of Real Estate Insider. A consistent Top Producer in the competitive world of real estate, Armed with a Finance degree from NUS, Aaron is more than just a real estate agent; he’s a strategic thinker and a creative problem solver.

If you are looking to invest in a property here in Singapore or would like to know more about Singapore’s property market. Be sure to reach out through the Calendy video link below:

Want to know more about Property Investing Aaron Oon

Frequently Asked Questions

How can I calculate the downpayment required for a resale HDB flat?

The downpayment for a resale HDB flat is typically 25% of the purchase price if you’re taking an HDB loan. If you’re using a bank loan, the downpayment can be between 25% and 45%, depending on the loan-to-value ratio of your loan. You can use your CPF Ordinary Account (OA) funds to cover most of the downpayment.

What should be included in my financial plan when buying a resale HDB flat?

Your financial plan should include your budget, financing options, CPF funds, cash outlay, and overall financial goals. It should also account for additional costs such as stamp duty, legal fees, and any renovation expenses.

Are there any special considerations for first-time buyers of resale HDB flats?

First-time buyers may be eligible for additional CPF housing grants and subsidies, which can significantly reduce the cash outlay required. They might also qualify for a higher loan amount and a lower downpayment.

What additional costs are involved when purchasing a resale HDB flat?

Additional costs include stamp duty, legal fees, and any agent fees. Stamp duty is calculated based on the purchase price of the flat, while legal fees cover the cost of the conveyancing process.

How do CPF housing grants and subsidies work for resale HDB flats?

CPF housing grants and subsidies are financial aids provided by the government to eligible buyers of resale HDB flats. They help to offset the purchase price and can be used to cover the downpayment or other related costs.

What is the process for completing a resale HDB transaction?

The process involves obtaining HDB’s approval for the resale application, paying the downpayment, signing the resale documents, paying the remaining purchase price, and finally, transferring the ownership of the flat.

Leave a Reply