With the government’s successive implementation of cooling measures such as Additional Buyer Stamp duty (ABSD), Mortgage Servicing Ratio (MSR), Total Debt Servicing Ratio (TDSR) and the tightening of the Loan-to-Value (LTV) ratio weighing on buyers, upgrading from HDB to private condo or executive condo is no longer just a decision that’s simply based on the price of the next property you can afford.
To make the most cost-efficient purchasing decision, the reality for hdb upgraders is that they must now take into account the ABSD involved in the purchase of the new property (in addition to other stamp duties) and the amount of mortgage loan they can secure from the banks due to MSR, TDSR and LTV(depending on whether is private condo or executive condo).
Speaking of this, you may have came across ads on social media platforms like the saying something along the lines of: “With an income of just S$7,000 onwards, you can upgrade to own private properties, without having to pay extra cash from your pocket!”
If you indeed want to upgrade to a private condo or executive condo without touching your cash, it’s important to see beyond these ads. In this page, we will show you the figures behind the different upgrading options available right now:
- Keep HDB, Buy Private Condo
- Sell HDB, Buy Private Condo
- Sell HDB, Keep Cash-on-Hand, Buy Private Condo
- Upgrade to Executive Condo
- Upgrade to Executive Condo without using cash-on-hand
- Sell HDB, Buy 2 Private Condo