Buying Selling Property Property

What can you do, when your HDB reached 5…

What Are The Available Options When Your HDB Reached MOP?

(Agent) Lewis: Mr. and Mrs. Soh, Thank you for your time. I understood, your current flat has reached the HDB MOP period. Any plan you have in mind?
(Owner) Mr. Soh : No Plan.. Why I need to plan? can’t i continue staying?
(Agent) Lewis : Oh, of cos you can continue to stay, until your flat reach 99 years of age.
(Owner) Mr. Soh : Den, why I need to plan? i just continue to stay lor!
(Agent) Lewis : Mr. Soh, yes, you can. But, do you know, what will the value of your HDB flat be if you stay till you retired?
(Owner) Mr. Soh: Though it will surely go up?
(Agent) Lewis : May or may no!
(Owner) Mr. Soh : you sure?
(Agent) Lewis : Yes. Why not let me share with you, what are your option available. After that, you decided what you want to do? Maybe you can retired earlier. I said, MAYBE
(Owner) Mr. Soh: Ok.

HDB reached 5 Years MOP

3 Common options available for owner

Option 1 – Continue to stay in current HDB Flat

To save all effort of selling, buying, renovating and moving. you can continue to stay in your current flat.

Before you make that decision, some of the key pointer for your consideration

Understand your current value of your flat?

In many of the HDB Flat, the price is at peak within the first five years, after MOP, forming a bell curve format. Reason being, the flat is still new, renovation is still in good condition where buyer don’t have to do much.

With that, some buyer don’t mind paying a bit more, for the condition and renovation. They can capitalised the use of their CPF to service the loan and not cash for renovation.

Although the age and renovation has impact to the value of the flat. These are not the only factor, there are other factor to be considered as every single unit of flat is unique. Not all flat will be within that category. Which can profit upon selling.

Option 2 – Buying a private property and consider renting the current HDB flat

This option is to buy a second property. Use property to generate income through rental. The rental collected can be used to service the loan of the property

The consideration for this option is. As it is a second property, you will be required to pay for ABSD (Additional Buyer’s Stamp Duty) during the purchase.

As you are still have a loan running for your HDB flat, the loan for your private property will be cap at 45% LTV (loan-to-value).

In many circumstances, this is the drawback for this option unless you are financially sound to pay those

Option 3 – Upgrade from the current property

In this option, you can further consider one for the four sub-option.

Buy First Sell later

Although you are buying the property first and sell it late, you will still need to pay Additional Buyer’s Stamp Duty (ABSD) to IRAS during the purchase and seek remission of the amount after selling your HDB flat.

The timeframe for that to happen is six months. Which means, the HDB flat need to be sold within six months from

– The date of purchased on the second property for completed property
– The date of issuing of the TOP (Temporary Occupation Permit) or CSC (Certificate of Statutory Completion), whichever is earlier for new / uncompleted property
to enjoy this remission.

Some other requirement will be, the couple will need to have at lease one Singapore Citizen in the purchase and the newly purchase unit has to be on both name of the couple only.

Lastly, at the time of selling the current flat, the couple must be remains married and there is no changes to the ownership of the second residential property.

Sell Now and Buy later

This is one of the most neat option. Reason, you do not need to rush to do any of the transaction be if buying or selling. You can have time to buy the unit you wanted to, be it new or resales.

The catch for this is, you will sell your current unit openly in the market. After which, rent a unit as temporary accommodation (be it 1 or 2 years lease depending on your buying)

During the staying in the rented flat, you will wait for the handing over of key for your purchase unit, do any renovation required and move in on the selected date.


Question you might ask will be, why should I be paying rental during this period?

Agreed, but the rented pay as compared to your ABSD. The different is very clear. Example, the ABSD for 2 million dollars property S$ 364,600. the rental for any units over 24 months, you can put aside $72,000 and you will still have a saving of close to S$ 300,000.

Buying and Selling concurrently

This option, you can bypass the above payment of ABSD totally. Yes, you can. But… But.. But..

The key factor to made this a success is, timeline need to be well plan and managed for both buying and selling of both the properties. You are also, need to take into consideration that you do not have time for renovation.

For this option, I will strongly suggest you to engage an experience and professional real estate relator to assist you. He / She must be able to put on table, a timeline plan on how you can go about doing the upgrade. This is to reduce any foreseeable hiccup

If you felt that, you are not confident in the realtor engaged. You can consider us, as you have 3 professional realtor at the same commission paid.

Selling your current and buying two properties, one to stay and one for investment

If financially permit. You can consider using both your cash from sales proceed and CPF Fund of the sold HDB flat to purchase 2 private properties.

one of the private property for your own staying and the other put in market for rental. The rental collected can be used to support the loan of one of the property with some surplus.

To reduce any possible stress from you, being the buyer of both properties. We can arrange to have both the properties purchased at different timing. This is not necessary to happen at the same time.


With the above options shared. it might sound too heavy for you. All option are workable, but it depends on the financial and risk appetite. I am most happen to assist to walk you through, at your available time slot, to see which option fit you best.

Case Study 1

Let me share with you, what I have done for one of my client, Mr and Mrs. Liew

Mr and Mrs. Liew purchased their HDB 4 room flat in Serangoon. A resales HDB flat. They have, during the purchase enjoyed the CPF Housing grant. They are not willing to move out of Serangoon area as their parent are staying in Serangoon also.

I was being contacted shortly after their MOP reached. Sharing with me, they have plan to upgrade. After understanding their financial and risk appetite and their interest in buying one private property and second for investment.

I have recommended them to sell their HDB flat and purchase a 3 bedroom in Forest Woods Condo. During the time, after selling the HDB flat, before obtaining the key for new condo (which is soon). They have the benefit of staying with their parent over the past 4 months.

Now, they are just happily staying with no worries, waiting for the taking over of their private condo. After which, they will be looking into investing a 2 bedroom units for rental.

Buy Sell Renting of your property

Lewis became part of the family of Orange Tee and Tie in 2020. He has been in the real estate since 2005, with him joining, he has brought along with him, was a long history of experience in both HDB and Private property.

His personal belief is, to share the truth and facts with everyone. With that, he has good credibility with all his client

As the world is moving into digital, there are still some “human touch” that must not be missed. Now, let’s ring me at +65 90107188 if you have any queries relating to real estate. I do understand you might be busy. Tap onto the following to WhatsApp me and i will respond to you

Lewis+65 9010 7188Buy Sell Rent.  Connect to me NOW
Market Outlook Financial

Market Outlook – Q2 2020

We have passed the mid-year of 2020. Within the first 6 months, there has been a few key economical situations, which have directly and/or indirectly impacted the property market.

Some key situations are
1. Coronavirus Pandemic Since Jan 2020
2. Singapore Declared Technical Recession on 14th July 2020
3. The unemployment rate increased to 2.9% in June 2020

The above 3 situations have placed many Singaporean in a very uncertain economical situation, especially so those in the workforce, where job security is his/her major concern.

Market outlook

HDB – Resales

Looking back – Q1 2020

Since Q2 of 2019, the number of HDB transactions, regardless of flat type, has been fluctuating in the range of 6,000. This has been going on till Q4 of 2019.

Historically, the transaction did dip when it came to the beginning of the calendar year, which was sometime in January and February. Therefore, the moving down of the transaction in Q1 of 2020 is somehow expected.

The drop is the transaction for Q1 2020, from the statistic representation, is much healthier than Q1 2019, which hit a low of 4,500

Data Source :

Looking from the price point perspective, all flat types are going very much constant, except for multi-generation. I will not take this flat type into consideration, as the requirement for this flat type is unique to a particular group of the buyers. This is also not to be used for benchmarking as the supply is limited to some of the HDB towns

Looking into – Q2 2020

From the transaction perspective, there has been a sharp drop in numbers from the earlier quarter of 5,500 units to Q2 of 3238 units. There are various factors leading to this dip.

The key factor was due to the enforcement of the Circuit Breaker in Singapore. The prelude of the Circuit Breaker started on 27th March 2020 where some of the entertainment venues were to close.

It further tightened on 7th April 2020, where non-essential services were not allowed. Real estate activity was, back then, classified as a non-essential service, and all viewing of the property was not possible.

Data Source :

There was not much of an impact on the pricing of the HDB flat, during the Circuit Breaker period. Looking from the chart, except for the bigger unit, which is the Executive flat type (ie, Executive Apartment and Executive Maisonette) that has dipped by 2.9%. the rest of the flat types are still going very much stable.

Data Source :

Future Sharing

With the relaxing of the Circuit Breaker on 2nd May 2020, real estate activities have recovered. The seller begins to allow the potential buyer to view their property and the buyers have started to source for their expected units.

HDB, being the public housing for all Singaporean, is always the first choice for those that are getting married. I foresee that the transaction will recover sooner than expected and it should be reaching the stable trend.

Private Property – Resales

Looking back – Q1 2020

Transaction for resale private property has come down since Q2 of 2018. The drop between Q2 and Q3 has come to almost 50% drop. In numbers, it drops from 3,975 to 2,172 transactions within that quarter.

After the drop, the number of transactions have been moving between the range of 1,600 to below 2,000. These numbers have been constant for the past 7 quarters.

Data Source : URA website

Although the number of the transactions have come down in Q2 2018 and remaining constant with a difference of 500 units between a quarter to quarter. The price of the transaction has been on an up.

During the initial drop from Q2 to Q3 2018, the price has come up from Q2 average per square feet of $1,357 to Q3 average per square feet of $ 1,375. The prices have been moving up since Q3 to the last quarter of 2019. Closing the year with $1,421 per square feet.

For Q1 of 2020, mainly due to the outbreak of Coronavirus, although not widely spread, has made many buyers aware, resulting them in holding back in offering any shortlisted property.

Data Source : URA website

Looking into – Q2 2020

With the implementation of the Circuit Breaker in Singapore which started in April 2020, which is the beginning of Q2. The number of the transactions have dropped from 3,773 in Q1 to 2,398 in Q2. A total drop of 1,375 units. Leading to, in percentage, 36.5%.

Data Source : URA website

The circuit breaker has created a very unique pricing situation for resale private property. The price during the Covid-19 circuit breaker period has come up. from $1,375 per square feet to $1,394 per square feet. An increase of 1.5%.

Data Source : URA website

Future Sharing

As we are aware, Covid-19 is not going to end anytime soon. Many agents have capitalized on the use of technology to conduct showing of resales to the potential buyer. This approach has given more opportunities for the buyer to feel comfortable and safer when they wanted to view the unit.

I will think that this is going to be the next wave of trend in the property shortlisting process. It also saves the time and effort of the potential buyer. With this convenience, I foresee property transactions will be back on track soon, living together with Covid-19.

Private Property – New Launch

Looking Back – Q1 2020

Transaction on new launches has been like a roller coaster since Jan 2018. It went up for 2 quarters, after which it came down, maintaining below 2,000 units transacted for another 2 quarters.

It swings up at a peak of over 3,000 during Q3 of 2019. The drop begins after Q3 and it went continuously down for 2 quarters, which the downtrend of Q1 of 2020 potentially caused by the outbreak of Coronavirus, leading to some uncertainty.

Prices for new launches do not get closely align with the number of transactions. Looking at Q3 of 2018, the number of transactions is on the up but prices have come down.

This trend goes the same for Q3 of 2019. Prices tapped down, although the number of units sold went up.

What has drawn my attention was the Q1 of 2020. With the outbreak of Coronavirus, the number of units sold came down, but the price per square feet went up, hitting past the average of $1,850 per square feet.

Looking into – Q2 2020

The numbers of units sold start to decrease since Q3 of 2019. This downward trend got worsen in Q2 of 2020 when Singapore went into the Circuit Breaker stage. Non-essential services were not made available leading to viewing at those new launched show flats not happening.

Unlike the resale private property, new launches prices have come down in Q2 2020. This largely was caused by the circuit breaker. The other possible reason is, the developer is reviewing their pricing to encourage the buyer to commit to those units that they are interested in.

Future Sharing

We have started to accept the fact that, Covid-19 is not going to be gone anytime soon. Therefore, property buyers and investors are now positioning themselves, to purchase the right units when the price and opportunity are right.

Also, developers and agents are now capitalized on the use of technology, such as video calls to meet with potential buyers, creating virtual show-flat for the potential buyers to view the units.

The developer has also invested in technology, to create a virtual show-flat tour for potential buyers. Accepting more electronic funds for payment of option and exercise fees and more…


Looking at the transaction numbers, the pricing of the properties in various segments of Singapore, athough the economic situation is not that positive, the real estate is still moving and transacting in a very healthy way

With the support of the chart and historical data, to date, the Covid-19 did not crash the real estate market. With the adjustment of the bank interest rate, there is more benefit to capitalize on these benefits and invest in the market for now.

I will not be able to speculate what is going to happen in Q3, and Q4 of 2020, but I am positive that it is moving in a healthy direction. Currently, while I am touching onto the market. New launches that are still coming on, and it is transacting well. Some good potential project has sold over 95% of their units and there are more, that has sold over 75%.

HDB owners are also taking this opportunity to upgrade. Be it to new launches or from the resales market. The demand for private property will still be stable.

Lewis Tee

“I am sharing these, based on my past experiences earned while participating in the market also, the data collected over the years. Hope this is of help to you, in deciding what you plan in the property market.”

If my sharing is helpful to you, and you will like to have a more in-depth discussion, I am most happy to have a session with you, at your best convenient time. Do drop me a WhatsApp to kick-start a discussion. Don’t wait till everyone has dived into the market, as it might be too late.

Buying Selling Property Financial

What Have CPF Accrued Interest Affected You Sales Proceed

Mr and Mrs. Tom is happily browsing the Internet, flipping on newspaper classified section, surfing on HDB website looking for the date of BTO, sourcing for new launch condo, etc.. … …

Having to stay in your current property for 10 years. The family has decided to sell the current property and upgrade to a bigger and better location. They did a quick calculation, basing on the buying price and the current average market value. They have made 100,000.

I was contacted by Mr. Tom since he bought his current property through me. He shared with me, his intention is to upgrade from the current HDB in Sengkang to a private condominium in Serangoon.

The very next evening, I met up with both Mr. and Mrs, Tom. We sit and discuss in more detail the intension and how they can move ahead seamlessly.

After the financial calculation with them. They did not make the expected $100,000 after selling. This came in shocking and the question is WHY?

In all mortgage loan repayment using Central Provident Fund (CPF). There are 2 interest that you paid. One is the interest for the mortgage, which reference SIBOR rate. Another part is the interest from the Central Provident Fund for using your CPF Ordinary Account (OA) to repay. when returning your fund to CPF. This amount can be obtained after you logon to the CPF website, under the accrued interest.

What is CPF

The Central Provident Fund (CPF) is a comprehensive social security system that enables working Singapore Citizens and Permanent Residents to set aside funds for retirement. It also addresses healthcare, homeownership, family protection, and asset enhancement.

Before your retirement, CPF has allocated 3 buckets of account. Mainly the Ordinary Account ( OA ), Special Account (SA) and, MediSave Account(MA)

Source: CPF Web Site

What Benefit did I get from CPF?

Additional Wages

Unknowingly, you are having an additional income every month. The amount comes to 17% of your monthly salary. This is from the employer’s CPF contribution to you during your employment status.

For example, your monthly wages are $5,000. You are supposed to contribute CPF, which is 20% of your monthly wages. Your take-home pay will end up being $4,000.

Going into your CPF is you $1,000 from your wages and employer will have to pay $850 into your CPF. That makes your total contribution to you CPF is $ 1,850

The amount of $1,850 contribution to your CPF. This amount will be distributed into 3 accounts. The OA, SA, and MA. Depending on the age, the able below share with you the distribution on the 37%

Age during employmentOrdinary AccountSpecial AccountMediSave Account
Between 36 to 4521%7%9%
Between 46 to 5019%8%10%
Between 51 to 5515%11.5%10.5%
Source from : Website AreYouReady by CPF

Higher Interest Rate

Buying Selling your property.  CPF calculation

Banks are offering an interest rate of not more than 1.5% for a Fix Deposit account. As for CPF, your interest rate earn is 2.5% for the Ordinary Account (OA) and 4% for Special and MediSave Account (SMA).

Using it as a source for investment

CPF fund can be used to do investment. This investment include the buying of property. But, for whatever amount that was withdrawal from CPF. There is an interest payable upon returning it back to CPF. Assuming you took $100,000 to do you property loan repayment. The return amount as shown on the following tables, including the interest incurred.

CPF buying selling property

What is the disadvantages of using CPF

Interest Payable

If you are using CPF to service your mortgage loan. There will be interest incurred when you sell your property.. This accrued interest can impact the sales proceed.

Interest buying selling property

Should I continue to use CPF to pay for my mortgage?

This depends strongly on your trade and your financial status. If you are a trade like me, a real estate professional, financial advisor, owning your own business. Cash repayment will be a good option to consider. As long as you are being employed. Your fixed salary received every month, with CPF contribution to your CPF OA account. It is worth considering using CPF to repay.

Interest buying selling property

CPF Accrued Interest

Although there is an accrued interest upon you selling your property. The amount will still return to your CPF OA account and the amount is not “missing”. At the age of 55. This amount will be part of the amount, transferring to your RA account.

You will feel the impact if you required this amount to purchase the next property. If you are facing the situation. Do share this with the real estate profession. They might be able to advise you on how it can be done. Everyone required a roof over your head at the end of the day.

Fund Management

Assuming you are in the workforce, where you have to continue CPF contribution. This amount into your CPF can only be yours after you age 55 (as of the year 2020).

Your monthly salary credited into your bank account, which is totally in your control. You will manage and use it for your daily expenses. If the mortgage loan repayment is going to be from the same pool of funds. It might add an additional burden in managing your cash on hand.

Without having to repay from cash. You can have peace of mind in the mortgage loan repayment.

Since the amount in CPF OA account is unable to use it for your daily spending, even, if you are jobless. Let’s use CPF OA to service the mortgage. In the event, your income was affected. The remaining amount in CPF OA is still able to support the mortgage.

CPF buying selling property

Buying a Home for Life without affecting the Retirement Adequacy

There is an update to the rules on both the use of CPF and HDB housing loans. The update provides more flexibility in buying a home for Singapore citizens at the same time, safeguard retirement adequacy.

The main focus of the new rules focuses on the remaining lease of the property. As long the remaining lease of the property can cover the youngest purchaser until at lease of age 95.

This rules has already taken effect as you read on this article.

In more detail sharing the new rules. As long as the remaining lease of the property is over 20 years. Also, it can cover the youngest buyer until at least 95 years of age. The repayment of the property can be through the use of CPF up to the valuation limit.

Should there be a more detailed understanding required, you can visit the site which gives you a more detailed explanation.

Will I be Debt Free after 30 years

Many homeowners I have spoken to. Their mindset is, I will buy the current property. Finished servicing the loan within the 30 years and I am debt-free.

This is correct in relation to the mortgage loan. What will happen to the value of the property? For HDB, the lease decay will have a direct impact on your property.

There is a very high chance the value of your HDB property will drop after it passed 35 years of age. The returns value of the HDB will not able to fetch as attractive price as current. This will lead to a lesser profit.

One of the recommendations, to safeguard the CPF, is to upgrade from your HDB to private. The upgrading is very much dependent on your financial capability.


We must give the credit to the CPF system. Without having to have that, many Singapore citizens may not able to afford a roof over their heads.

The consideration is, being a buyer, how can we fully utilized the system to achieve a positive return. It should not impact the retirement fund and at the same time for a better life living.

Singapore having a limited land size. The prices of Singapore property is very likely to be on the up as times goes by. We look at most of the countries. The property price is always on the uptrend as long as there is no financial crisis, be it within the country, the region, or across the world.

Therefore, even with the accrued interest compounded. You might not be losing any of your profits. Having said that, timing is the key to making the decision of selling or buying.

Lastly, with the financial and political stability of Singapore. Fund in CPF and the value of the property will be safe. Investors are also keen to bring their funds into Singapore to invest in property.

If you are unclear. Especially when it comes to, how the interest affects you and your CPF. How can you maximize the return so as to have more funds during retirement?
Do contact me at +65 90107188 or via WhatsApp here. I am most honored to share with you any concern you have and how can you move forward with a lower impact on the accrued interest.

Lewis Tee

Lewis became part of the family of Orange Tee and Tie in 2020. He has been in real estate since 2005. Together with him, he brought along a long history of experience in both HDB and Private property.

His personal belief is, to share the truth and facts with everyone. With that, he has good credibility with his client. His strong belief in a partnership and not the client made him successful in this career also.

Buying Selling Property Financial

Who Should Do Mortgage Refinancing?

Who Should Do Mortgage Refinancing?

For many Singaporeans, the flat we purchase usually does not belong to us for several years, the reason behind that being that we put our purchased flat on a mortgage, where we then do our monthly repayment to the mortgage.

The situation worsens if you are repaying through your Central Provident Fund(CPF), which many of us are doing. Why is it worst off? Without realizing, you are paying double the interest rate, as one interest goes to the mortgagee, and at the same time, you are also paying interest to CPF for withdrawal amount. If you check on your CPF account, you would realize after years of repayment that you will have an “accrued interest”.

Should I refinance My Mortgage?

For the refinancing to happen, your mortgage loan has to be from banks. Any loan from HDB does not entitle you to any refinancing. As long as you have fulfilled the criteria above, the answer to the refinancing is YES.

Refinancing With Lower Interest Rate

As the loan interest rate for Singapore property mortgage in packed onto the SIBOR rate, it is a good opportunity to look at the rate and decide when to do your refinancing of a mortgage.

Mortgage Refinancing?
Data Source from :

Historically, the rate is on the downtrend, which means that with the same loan amount, you are paying lower interest.

Lower Repayment Amount

There are a few factors that would have a direct impact on the monthly repayment amount of your loan.

Firstly, the interest rate. Since the SIBOR rate has decreased based on the chart above, the computation of your loan repayment amount will be based on the revised rate. The total payable amount will be lower than earlier over the same repayment duration.

Secondly, your loan principal has also decreased the past few years as you have started repaying your loan. With that lower principal loan amount, the computation to the repayment would also be lower.

Shorten Total Repayment Term

Normally, when we first start any mortgage loan, we would look for the longest repayment term possible. This ensures that we are paying within our comfortable ability.

Never have we realized that these “slow and steady” repayments lead to a higher interest rate paid. With the refinancing of your outstanding loan and a lower loan amount and interest rate, we can consider repaying with the same repayment amount in a shorter duration.

Unlock Equity Financing

Equity financing, is a way where you used your property as a form of collateral for a sum of cash. The cash amount is relative to the value of the property

For equity financing to happen, all financial institutions need to ensure the following criterias are met.


For equity financing to happen, the LTV for the homeowners must be kept at 75% of the property value. This includes the outstanding loan secure on the same private residential property

Tenure Capping on Loan

For the equity withdrawal, your tenure is limited to a maximum of 35 years

Total Debt Servicing Ratio(TSDR)

Total Debt Servicing Ratio(TSDR), is a framework from the Monetary Authority of Singapore(MAS). It serves to safeguard the borrower from being over-borrowing which may lead to repayment difficulty.

TDSR is calculated using the formula : (Borrower’s monthly debt obligations / Borrower’s monthly gross income) x 100%. This drives to a percentage of his entitlement to TDSR.

In this formula, there is an element, which is the monthly debts obligations. This includes all debt obligation such as the following, but not limited to:

  • Property-related loans, including the current loan being applied for.
  • Car loans.
  • Student loans.
  • Renovation loans.
  • Credit card loans.
  • Any other secured or unsecured loans, including revolving loans.

Consolidation of Debt

Other than the mortgage loan, many of the homeowners do have other repayments every month. In some cases, there are a handful of homeowners who are having high-interest rate debts, such as credit cards (In many cases, is at 24%) or other debts.

Consolidation of debt, in this case, enables these homeowners to use the refinancing opportunity. Using the home as collateral to cash out funds in repayment to those credit card debts. The rate through the use of equity financing is of a lower rate as compared to some of those other debts the owner may have.

If the purpose of refinancing is to do consolidation of debts. There may not be any savings, should you look at total debts in totality. The consolidation of debts is to help them to overcome the struggling monthly repayment.

In addition, the consolidation of debts can also allow them to better manage the process of repayment of their monthly bills. Without the consolidation, these homeowners may be very much overwhelmed by their numbers of bills to be managed. The amount to be paid every month.

Even if the number of outstanding bills are not worrying, it takes time and effort to do the payment for all bills. With that, some homeowners might want to take the simpler way of doing the repayment.

Refinancing gives me all the benefit?

However, as in all situations, there is a flip side. Although there are the above benefits, there are also cons in doing refinancing of your property.

Property being collateral

Being a homeowner, when you put your property on collateral during the refinancing. If you, being the mortgagor, are unable, or refuse to repay the monthly loan, the mortgagee, in this case, the financial institution, essentially owns the mortgagor’s property

Therefore, if equity financing is your consideration, I will strongly suggest you work on the affordability. The comfortable level of repayment duration and amount before execution. Should you have any unclear concerns, do consult a professional.


When you do equity financing to your property, you are like striking a 4D at that point in time. The main difference is, striking 4D does not require you to repay back but the refinancing requires you to do so.

Therefore, the mortgagee must be very sure of his/her purpose and intent of doing the equity refinancing. Some questions that may be asked are; What is the right amount you require? What is the repayment schedule and amount? Where is your source of funds to do the repayment?

Additional fee

The refinancing process is not just moving of blocks, and there will be parties involved in getting that done. To do so, there will be some fee payable.

Some of the required fees include legal fees. On average, it would cost around $3,000 just to complete the refinancing process. What you are paying is not limited to only the legal fees, and there are other fees payable by you such as property valuation fees, where a valuer is required to assess the value of your property to ensure that the worth of your property is of market value.

Although the interest rate is lower, there is a monthly saving, but do take note that there is a one-off payment required. These are some fees payable that you should take into consideration.

Before any decision, please speak to a mortgage broker. This would allow you to have a more detailed understanding, and would also give you a good understanding of how to crunch out all figures for you. If you are speaking to the financial institution broker, they can also help you with all the necessary paperwork if you are doing the refinancing through their financial institution.


Refinancing your mortgage required you to do some research beforehand. If you are not looking into doing equity financing during the refinancing of your mortgage, it will be very direct. As long the interest rate is low and the difference is able to recover your legal fee, it should be fine.

Should you want to do equity refinancing, there is more consideration on the Cons of the process. However, you may overcome these risks as the main risk to refinancing is the human factor. As long as you have the right aim and are well aware of the repayment amount and schedule, the risks are low and manageable.

There are many refinancing of mortgage available. Before talking to the mortgage broker, you may contact me for a discussion. I am neutral in the financing of your property. I am able to share with you an honest opinion.

At no obligations, I can be contacted at +65 90107188 or via WhatsApp here

Buying Selling Property Property

Should I Sell My HDB After Upgrading To Condo?

Should I Sell My HDB While I Am Upgrade To Condo?

As time moves on, you have built your financials to be able to upgrade from your existing HDB. There are some questions that you would be asking yourself, such as; Should I upgrade? What should I upgrade to? Where would be a good location?

These questions can be answered easily as it is very much how you feel. You would be able to address those queries, as long as you are comfortable both with financially and with the location. However, the question that sits between the current and future financial is, should I sell my HDB after upgrading?

There are few things that you should take into consideration, before making that decision that I will be sharing with you.

How Much Interest Would I be Paying

As this is your first HDB Flat, you would have taken up a HDB loan. You will also have received a grant from CPF Housing grant. You are using your CPF to repay your loan.

Buying Selling upgrading from HDB to private condo.

Assuming that you bought a 4 Room HDB flat in Bukit Merah in 2010 at $500,000. You would have taken a loan of $350,000. As of today, you have serviced your $350,000 loan for 10 years. The interest rate you paid is at 2.6%. How much of your accrued interest has been paid?

Buying Selling upgrading from HDB to private condo.
Data obtain from

From the chart above, you have paid a Cumulative accrued interest of $82,363.75. If your flat is sold now at the current market value (Q1 2020) of $652,000, $432,363.75 would be credited back to your CPF, and your potential cash proceed would be $219,636.25.

Should you decide to hold your property. Your total accused interest paid would be $183,429.95 upon completion of the 35 year loan. In addition to your principle of $350,000. The total amount returning to CPF at the end of 35 years will be $533,429.95. About $100,000 more than what it is today.

To achieve the $219,636.25 of cash proceeds. Your flat needs to be sold at $753,000 25 years later at $753,000. However, this figure may not be possible at that time due to the following reasons stated below.

Tax Payable When Buying Your Condominium

As you have decided to rent your HDB instead of selling it. You would be required to pay Additional Buyer Stamps Duty (ABSD) on the condominium that you have purchased, and should you be a Singapore Citizen, you would be required to pay 12% of your Condominium purchase price.

Looking at a property that is a unit with 3 bedrooms at Queens Peak, which is going at $1,800,000, the ABSD of 12% would be a cash payout of $216,000. This amount would almost be equivalent to the cash proceeds from previously selling your 4 room flat.

Total Loan Amount

To be entitled to a loan for your newly purchased Condo, you would have to

Buying Selling upgrading from HDB to private condo.

Total Debt Service Ratio(TDSR)

The Total Debt Service Ratio is a framework by the Monetary Authority of Singapore(MAS), which aims to safeguard the borrower, whom in this case is the property owner, from over-borrowing.

This is computed based on the percentage of the monthly gross income of the purchaser, to ensure the ability of repayment

Loan To Value(LTV)

If your current HDB has a loan that is still running, you would be limited by the Loan To Value(LTV), hence, your total loan amount would be 45% of the total property value. In addition, you will be required to have cash on hand for 25% of the property value as down payment.

Should you decide to buy-up your current HDB Loan, it will be your second property, and hence your LTV would be capped at 75% of the property value, and the cash on hand required for down payment would be 5% of the property value.

Putting Your HDB For Rental

You would want to put your HDB flat to good use after having to hold back the selling of your flat. Majority of the people would put the unit out for rental, as with that, you would become a property investor, collecting rental as a form of passive income.

Sound good? Yes. But, have you missed out anything?

Answer is : YES!

Before you collect the key to your new condominium, you will be required to pay the ABSD in CASH within 14 Days after the agreement of the purchase has been signed.

Upon receiving the keys to your new Condominium. Before you are able to rent out your flat. You would have to refurnish the flat, ensuring that all necessities are in a working and presentable condition. Along with fulfilling the requests of the tenant for necessities such as beds, a television, and a washing machine, just to name a few. Depending on the condition of your flat. The amount required for refurnishing might cost you up to a few thousand dollars, even before the flat has been rented out.

Upon successful rental of your flat, the amount of rental collected would be taxable at the end of the year. This amount would be on top of your regular taxable income. In addition to the tax payable, you would be required to pay a property tax, which is 10% of the Annual value of your flat.

Should the flat be rented out at a rental value of $2500 with a lease of 2 years, the total rental collected would be $60,000. With your loan repayment for your HDB flat that is estimated at $15,000 per year, in addition to the tax payable and repair works required, your profit per lease term of 24 months, potentially comes to $25,000.

Pricing Of The Older HDB Flat

The value of property depreciates with time. A HDB flat with a value of $652,000 now, would not remain the same in 10 years.

With reference to a point above, you would be fetching a potential cash proceed of $219,636.25 should you decide to sell your property now. With reference to the supporting chart shown below, the average transaction price of a 4 room HDB flat in Bukit Merah is $687,000, with the price increasing from 2007 to 2013, before stagnating after Q2 of 2013. This is due to the age of the flat.

Buying Selling upgrading from HDB to private condo.
Data Obtained from

Therefore, wanting to make $219,636.25 after having fully paid your loan 25 years later could pose as a challenge, as the price that you would have to sell your flat at would be $753,066.20

Expected Cash proceed : 219,636.25,
Principle Load amount : 350,000
CPF accrued Interest : 183,429.95

Buying Selling upgrading from HDB to private condo.

The rental amount of $312,500 collected over 25 years, with the assumption that the rental fee remains at $2500 per month, was not taken into consideration, as it has been used to offset the amount paid for ABSD

Below Is A Case Study For Your Reference:

Mr and Mrs Lim contacted me sometime back. They had some thought of upgrading from the existing HDB to a Condominium near Sengkang.

From the meeting with them, Mr. Lim gave me the understanding that they were staying in a 5 room flat in Sengkang. The flat has passed the MOP and they are planning to upgrade to a Condominium.

Without drilling into much detail, my initial recommendation to them was, not to hold the HDB flat. The purchase of second property will require them to pay for ABSD. The ABSD amount is going to be of an impact to them. Mr. and Mrs. Lim have also shared, that was the concern they had and wanted a second opinion from a professional realtor.

Moving on, I have also shared with them, the accrued interest from the CPF, which they were not aware of. I have therefore, done the computation as followed for them.

Purchase Price of Flat : 488,888
Loan Amount : 380,000
Outstanding Loan: 336,000
CPF Accrued Interest : 56,000

Expected Selling Price : 540,000
Potential Cash proceed : 100,000

I have also shared that should they want to keep the HDB, the ABSD for the new property priced at $1,500,000, would be $180,000. The potential cash proceed would not be able to cover that should they not sell the HDB flat

With that, Mr and Mrs Lim has taken my recommendation. They have put the HDB on market for sales, at the same time looking for the new condo. I have also shared on the timeline required for both buying and selling. So that they are able to move into the new place and same time, without incurring additional costs


Having shared the various figured on the holding on to a HDB flat and buying a Condominium. My recommendation would be, for them to sell their current HDB flat once it has reached the MOP or when you decide to upgrade. Holding a second property with the first being a HDB comes with a higher additional payable tax. Furthermore, there is no capital gain tax upon selling your HDB.

However, with that said, there are still options available should you want to become a property investor. You can still invested in two properties, without incurring high payable tax can be overcome. This can be done, as long as the properties you owned do not involve a HDB.

Buy Sell Renting of your property

Lewis became part of the family of Orange Tee and Tie in 2020. He has been in the real estate since 2005. Together with him, he brought along a long history of experience in both HDB and Private property.

His personal belief is, to share the truth and facts with everyone. With that, he has good credibility with all his client

As the world is moving into digital, there are still some “human touch” that must not be missed. Now, let’s ring me at +65 90107188 if you have any queries relating to real estate. I do understand you might be busy. Tap onto the following to WhatsApp me and i will respond to you

Lewis+65 9010 7188Buy Sell Rent. Connect to me NOW

Buy Sell Property Property

Should Your First Home Be HDB BTO

Should The First Home You Are Getting Be HDB BTO Flat

Congratulation, when you start to reach about this post, it tells that, you are about to make one of the bigger ticket investment – Property

Being a first-timer, wanting to own a property. you might have zillion question, such as what should we buy, where should we buy our HDB Flat, how much are we going to pay, how much loan we can take etc.. etc.. etc.. and more

Now, let me share with you, some of the broad options you have before you start to walk the ground.

Buying from HDB directly, the Build To Order (BTO) option

Consideration when getting a BTO Flat

Buying BTO flat direction from HDB, is normally the first consideration for any Singaporeans. This is a sign telling you that, you are finally ready to move into the next stage of life. Building a family.

But, how we kick start and what are the processes involved? Let me share with you, the step-by-step guide, from application to owning the flat.

Checking your Eligibility

For the purchase of BTO directly from HDB, following are the various HDB eligibility schemes available

  • Public
  • Fiancé/Fiancée
  • Orphans
  • Single Singapore Citizen
  • Joint
  • Non-Citizen Spouse

From the list above, most of the applications are in the Fiancé/Fiancée schemes. I will share more of this scheme. Should you require understanding on the rest of schemes, please scroll to the bottom and contact me for detail description

For the purchase under the Fiancé/Fiancée scheme. you are required to form a family nucleus.

Family nucleus can be broadly defined as two persons that are related have the intention to stay in the same household. The relationship is husband and wife.

To support the proof of relationship, the certification of marriage is required to be submitted to HDB. This submission can be done during the key collection appointment.

In the event, the marriage certificate is not obtained on time, it can be submitted within 3 months, from the collection of keys. The submission can be done through HDB branch

Getting of Home Loan Eligibility (HLE)

If you are planning to obtain concessionary loan from HDB, HLE Letter will be required. The HLE will also indicate what is the total loan amount being allocated. These total loan amount entitled allow the applicant to know what is the purchase prices of the flat applicant


As shared earlier, all applications to HDB required to fulfill the eligibility requirement.  Due to the high volume of applications.  Every balloting exercise for BTO flat from HDB is being computerized. 

BTO HDB Resales

The initial process from HDB will mainly be the verification of the applicant.  Verification includes the eligibility of application, any priority schemes and also any information or documentation gaps.

After all necessary verification, the next stage of shortlisting, which will require a wide range of considerations.  These considerations include household status, flat type, any priority schemes.  After all the above consideration, the applicant’s queue position will then determine.

Ballot Matrix

Over the years, there are more and more priority schemes being incorporated.  These priority schemes help to meet the needs of different groups of applicants.

The system was being finetuned progressively to allocate different quotas for different priority schemes.  The process will also take into consideration applicants who fits more than one priority schemes

Audits and Checks

To ensure fairness during the BTO process.  stringent checks are carried out on applicants’ eligibility, computerized process and cross-checking of ballot result before releasing to applicants


After going through the whole process, the applicants will be informed of the final results of the balloting. Informing of this result is through SMS, email or hardcopy letters.

Selecting your flat

The queue number obtained during the application process, determine your priority in choosing your unit.  As a form of contingency, the total queue allocated might potentially exceed the total number of units available for selection.

Buying HDB flat

If your queue number is over the number of allocated units, there are chances that you won’t be able to get any units during this balloting cycles.  You will, therefore, have to ballot again during the next cycle.

After you have selected your unit with HDB, the whole purchase process started by paying an option fee.  The amount of option fee payable depends on the flat you are purchasing.  For 3-room flats, the option fee is $1,000 and the option fee for 4-room flat and above is $2,000.  This option fee will be part of your down payment.

Any entitled CPF housing grants will also be applied during this time.  To ease the application of grant I will recommend you download the grant application forms and bring along during your booking appointment.

Sign the lease agreement and pay the downpayment

All lease agreement has to be signed within four months from the booking of flat.  Please ensure, all your loan application is approved by that time.

On the day of signing the lease agreement.  Additional payment, such as down payment, stamp duties, and legal fees is payable.

Downpayment amount will be 10% of the agreed price of the flat when you are taking HDB loan and this amount can be paid using cash and/or CPF.

Collection of keys

Confirm your appointment date

Once the flat is built and it is ready to stay-in.  HDB will informed you when to collect your key.  To ensure, you can check back on the date.  This information is being updated in the HDB portal.  You can login to HDB Site, navigate through My Flat > Application Status > New Flat > Reg.No.

Applying for fire insurance

All flat owner, taking HDB loan is required to purchase Fire insurance for the flat.  The current appointed insurer for the HDB Fire insurance is FWD Singapore Pte Ltd.  The insurance can be purchase via online

Applying for Utility Account

This application is not critical, but if you are a busy working adult, you might want to do it on the same day. Alternatively, you can also apply online.

As Singapore has open fair competition for utility provider, you can go online to source for the best rate available, that is to your benefit. some of the provider such as:-

  • Best Electricity Supply Pte Ltd
  • Diamond Energy Merchants Pte Ltd
  • Geneco (by Seraya Energy Pte Ltd)
  • iSwitch Pte Ltd
  • Keppel Electric Pte Ltd
  • Ohm Energy Pte Ltd
  • PacificLight Energy Pte Ltd
  • Sembcorp Power Pte Ltd
  • Senoko Energy Supply Pte Ltd
  • Sunseap Energy Pte Ltd 
  • Tuas Power Supply Pte Ltd
  • Union Power Pte Ltd 

Prove of fire insurance

The certificate of fire insurance will be required. Without that, the collection of key will not be successful. All required document are to be printed. Before your key collection appointment..

After understanding the process of applying for BTO. The next key question will be, “wah.. so much work needs to be done”. Why should I go through those processes?


Although buying of BTO flat is a lengthy process. but they do have benefits in buying BTO Flat.

Some key benefits for you to think through.

  • Newly build flat
  • From HDB, which is the fair market price
  • Lesser worries and time, where sourcing is not from the list of selection provided by HDB
  • Defects Liability Period  (DLP) of 1 year is available

The flip side of buying BTO will be

  • Limited location for BTO (BTO is base on availability, you might not able to have the expected location)
  • CPF Housing grant is made available if you decide to buy a resales HDB flat, that is near your parent
  • You can potentially get a slightly bigger unit if you are buying an older HDB flat
  • Amenities and accessibility are more established.
  • Able to renovate to you own liking

Read the following before you make your decision

Buying from Resale Market

Lewis of Orange Tee and Tie
Ring me at +65 90107188

Lewis became part of the family of Orange Tee and Tie in 2020. He has brought along with him a long history of experience in both HDB and Private property.

His personal belief is, to share the truth and facts with everyone. With that, he has good credibility with all his client

Now, let’s ring me at +65 90107188 if you have any queries relating to real estate. I do understand you might be busy. As SMS and/or WhatsApp will be easier and I will respond to you.

Buying Selling Renting HDB Property

4 Questions To Ask Before Upgrading Your HDB

4 Questions To Ask Before Upgrading Your HDB

You have been staying in your newly BTO HDB Flat for almost five years.  Your neighbor has been talking about upgrading to a bigger flat, upgrading to a private Condo, profiting from the sales, cashing during the coming up-trend of the market, etc.

On many occasions, your discussion with your friends or relatives will be very much in the direction of upgrading to the private condo, your value better if you want to sell in the future. The best is to get a freehold condo. You have the facilities you need downstairs. You have full ownership and more

After talking to many people around you, all will be giving similar feedback, and you decided to upgrade. What is the magic question you will ask yourself or the realtor before you make those moves?


The answer to that is NO if you are a Singapore Citizens. you do not have to sell your current HDB flat before you can buy a condo in Singapore. Although you are given the option to own more than 1 properties, after buying the private condo. there is a financial impact which you will like to consider.

Upgrading Your HDB

To own a second property in Singapore, there is an Additional Buyer Stamps Duty (ABSD) to be payable. Depending on the number of properties the HDB owner owns, the percentage of ABSD varies from 12% to 15% after 6th July 2018, depending on the number of properties the owner owns


Depending on your financial situation and also, your risk appetite, you might consider selling the HDB and upgrade to the private condo.

Once you have made that decision, the computation of HOW MUCH goes into your pocket I make upon selling my HDB, and can I afford to buy private Condo?

Time to Sell your property. Contact me now at +6590107188

You realized, SingPass is very important now. Why, first, you will need to know, how much outstanding loan you have, if you are taking HDB loan. if you are taking a bank loan, you will need to check with the bank providing you the loan.

How do I check my outstanding loan, if I am taking an HDB loan? you will have to log in to the HDB web portal, i.e., After successful login, go to My HDBPage and obtain the outstanding amount indicated.

After knowing how much outstanding, you will now, find out how much you need to return to CPF, which you are using it to service your earlier loan. in the event you are using CASH to services you loan, this will not be required.

To obtain the total CPF amount used, including accrued interest. Log in to the CPF web site using your SingPass. Upon successful login, go to “My Statement”. Select “My Public or Private Housing Withdrawal Details”, which will provide you detail on the amount payable after selling your property

After summing the above 2 figures, you have computed the biggest ticket amount. with that, you can, therefore, make a quick decision, will your HDB, selling at the current market situation . will it be profitable for you. In a simple team, do you get back any money?

What are the taxes payable upon buying

In a purchase of Property, there are various tax payable. Inboard category, there are the following tax payable

Buyer Stamps Duty

Buyer stamp duty is tax duty payable, regardless of the number of the property you have prior to the purchase of the property. This payment is required once you have executed the sales and purchase agreement

If the benefit is stated in the document to be stamped and is a cash discount (i.e. cash, non-post dated cashier’s order or cheque) to be given to the purchaser upon execution of the document (and not later).

Worry about your BSD (Buyer Stamp Duty).  Contact me now at +6590107188
BSD Computation

To know what is the total amount that is a consideration for stamp duty. The total discounted amount may be deducted from the purchase price.  The final agreed price will still reflective of the current value.

If the document to be stamped stated a non-cash benefit to be given (e.g. furniture voucher, rental guarantee, car, or lucky draw), the value of the benefit is not deductible from the purchase price for stamp duty purpose.  

If the cash or non- cash benefit is not stated in the document to be stamped, the value of the benefit is also not deductible from the purchase price for stamp duty purposes.

Additional Buyer Stamp Duty

The ABSD liability will depend on the profile of the buyer as at the date of purchase or acquisition of the residential property:
A.  Is The buyer is an entity or an individual
B.  The Buyer’s residency status
C.  The numbers of residential properties owned by the buyer(s)


An entity means a person who is not an individual. It includes the following:

  • An unincorporated association
  • A trustee for a collective investment scheme when acting in that capacity
  • A trustee-manager for a business trust when acting in that capacity
  • The partners of the partnership whether or not any of them is an individual, where the property conveyed, transferred or assigned is to be held as partnership property

If a property is jointly purchased by buyers of different profiles, the profile with the highest ABSD rate will apply to the entire value purchased.

Thinking of the ABSD (Additional Buyer Stamps Duty) Contact me now at +6590107188


The applicable ABSD rate is based on the nationality of the buyer on the date of purchase. You must have been granted the residency status by the Immigration and Checkpoint Authority (ICA) as at the date of purchase in order to enjoy lower ABSD liability. The date of the issue reflected in the IC collection slip would be taken as when the residency status was granted.


If a Contract or an Agreement to purchase the property has been signed, that property is to be included in the count of properties owned by a buyer from the date of acceptance of the agreement, even if it has not been legally transferred to him as he already has an equitable interest in the property.

This also includes the purchase of an uncompleted unit from the developer if the Sale & Purchase Agreement has been signed.

Similarly, the property is to be excluded from the count of properties owned by a buyer. If there is already a Contract or an Agreement to sell his property and the new buyer has executed his option to buy the property.

Should I use the same realtor for buying and selling

There is technically no right or wrong answer to use the same realtor in both your buying and selling of properties. In fact, there will be more benefits in using a single agent for both your buying and selling of your property.


The same realtor will be able to coordinate the timing of both buying and selling, that minimize running into the risk of “homeless” or “overpay”. This risk might potentially happen when using 2 realtors.


Other than time-saving, as share earlier. the cost-impact will come in when the handing over of your sales units is earlier than your collection of the property bought.

This potentially leads to, an arrangement of short team stay is required, be-it, hotel stay, short term rental, etc…


Dual representation in the context of real estate is, the same realtor is representing you, and the other customer on the SAME property.

In the case of representing the SAME customer on a different property, it will not be classified as due representation, rather trust in a seamless transaction of both buying and selling.

Is that what I need to know?

Sadly, there are more information and procedure required in both the buying and selling of your flat. By reading will give you many theory concepts, but when it comes to actual execution. There are always surprises that rises

Lewis Tee

To ensure a smooth and seamless transaction. Most importantly, a stress-free buyer and seller. Let the professional do the job.

Ring ME now @ +65 90107188 to have a sharing session on your expectations.

Alternatively, you can also SMS or WhatsApp me