Assistance to Singaporeans Buying and Selling HDB Flats in Preferred Language of Communication and To Ensure They Do Not Need to Raise More Money for Purchase of Flat before CPF Reimbursement
Ministry of National DevelopmentSpeakers
Summary
This question concerns Mr Leong Mun Wai’s inquiry regarding language assistance for HDB transactions and financial measures to manage cash flow when simultaneously buying and selling flats. Minister for National Development Desmond Lee stated that HDB frontline staff can assist in Malay, Mandarin and Tamil, while various facilities exist to ease the financial transition between homes. For resale flats, the Enhanced Contra Facility allows the use of sale proceeds and CPF refunds for purchases, while the Contra Payment Facility provides additional loans for new flat buyers. Seniors or flat buyers paying in full may also apply for a temporary loan from HDB to meet shortfalls pending the sale of their existing property. These loans and facilities must be redeemed with net proceeds upon the completion of the sale, ensuring buyers do not need to raise additional funds before CPF reimbursement.
Transcript
115 Mr Leong Mun Wai asked the Minister for National Development whether assistance can be provided to Singaporeans who are simultaneously buying and selling HDB flats (i) in their preferred language of communication like Mandarin, Malay or Tamil and (ii) in such a way that they do not need to raise additional money to pay for the purchase first before getting reimbursed by CPF.
Mr Desmond Lee: For all Housing and Development Board (HDB) flat transactions, assistance can be sought from HDB frontline staff who are able to communicate with flat buyers and sellers in their preferred language, such as Malay, Mandarin and Tamil.
For those selling a HDB flat and purchasing another one, HDB has various financial assistance measures to ease their cash flow in completing their flat purchase, without having to wait for the completion of the sale of their existing HDB flat to receive the CPF refunds and cash proceeds to pay for the flat purchase.
For those buying a resale flat on the open market, they may apply for the Enhanced Contra Facility which allows them to use the CPF refund and cash proceeds due to them from the sale of their existing HDB flat to pay for their resale flat purchase.
For those buying a new flat from HDB, they can apply for the Contra Payment Facility, which provides them with an additional loan on top of their eligible housing loan amount from HDB. This contra facility is to help them meet the shortfall that they would otherwise need to pay using cash or CPF savings for their new flat, pending sale of their existing flat. Those whose flat purchase is not financed by a housing loan, such as seniors buying a 2-room flexi flat on short lease or Community Care Apartment, or flat buyers who wish to fully pay for their new flat, may also apply for a temporary loan from HDB. In both cases, upon the completion of the sale of their existing HDB flat, the additional loan amount for the Contra Payment Facility or the temporary loan must be redeemed with the net proceeds from the sale.
Flat buyers who require assistance can approach HDB for more information.