Top 5 Nature Walks in Singapore for Hikers
Singapore, a bustling city-state known for its impressive skyline and modern architecture, is also home to a plethora of natural...
Read More
TLDR
When selling your home in Singapore, ensure you pay off your outstanding home loan, refund any CPF monies used, and cover miscellaneous fees like agent commission and legal fees. For upgrades to Executive Condominiums (EC), consider whether to settle your mortgage upfront or use sale proceeds. Existing property loans are exempt from TDSR, allowing you to obtain a second loan for upgrades. Consider your financial situation and consult with experts for strategic real estate advice.
If you’re a first-time home seller, there could be things you’re not familiar with. You might ask yourself, “What happens to my mortgage when I sell my house?”
Or if you’re going from a flat to a condo or EC, you might wonder how much of your HDB sale proceeds you’ll be able to use.
Fear not – we’ll help you work it out!
Can You Sell Your House Before Paying Off Your Mortgage?
Absolutely! Yet, in order for the ownership of the property to be officially transferred to the buyer, you must pay off your current loan first.
Your Sale Proceeds Will Be Used To Pay Off Your Mortgage
Selling your home comes with several financial considerations – like paying off your mortgage, refunding to your CPF, managing grants and commissions, and more – that will impact the final sale price.
Keep these details in mind and you’ll be prepared to navigate the process with confidence.
Pay Your Outstanding Home Loan
Your first step should be to take care of any outstanding home loans, be it from HDB or a bank. The amount will be taken from the sale proceeds. With your CPF, you can cover the downpayment and any additional expenses such as stamp duties and legal fees.
Refund your CPF monies
If you had utilized your CPF Ordinary Account (OA) funds to pay for your home, you would need to reimburse the principal amount, plus any accumulated interest, back to your CPF account.
This could have been utilized to finance your down payments, monthly payments, and buyer’s stamp duty. Moreover, for those who had been awarded any housing grant, you would have to return it to your CPF OA.
To ensure that you take into account the accrued interest for all of the above, remember that this is the interest that the principal amount would have earned if it was sitting in your CPF OA instead of being used to pay for your house.
With a current interest rate of 2.5% per annum, we have provided a step-by-step breakdown of calculations in our article.
As an alternative, you can log in to your CPF account or use HDB’s sale proceeds calculator.
Don’t let the amount taken from your sale proceeds discourage you; the amount refunded to your CPF account can always be used to finance your next home!
Miscellaneous Fees – Agent Commission, Resale Levy Etc
Your sale proceeds will also cover a variety of additional costs, such as an agent commission (typically 2% of your home’s selling price), legal fees, and a resale levy (if applicable).
Remember, agent commission is negotiable – so don’t hesitate to make sure you get the best deal! Plus, keep in mind that if you’re looking to buy a subsidised flat for your next home, you’ll likely be subjected to a resale levy.
Should You Pay Your Existing Mortgage Upfront If You’re Waiting For The Completion Of Your New EC?
When you decide to upgrade from an HDB to an EC, you have the advantage of not having to put your current home on the market for six months after you receive the keys to your new EC.
Furthermore, you won’t have to pay the Additional Buyer’s Stamp Duty (ABSD)! You may be wondering if it’s better to settle your mortgage loan ahead of time or keep up with the monthly payments until you can sell your house; the choice is yours!
When considering your next purchase, it’s essential to look at your cash flow, available financing, and living expenses. Ask yourself if you have enough money to pay off your mortgage, plus enough extra to cover the downpayment, legal fees, BSD, and resale levy (if applicable).
Rather than paying off your mortgage upfront, you could use the sale proceeds from your property to cover the remaining balance.
Having more money in the bank for emergency funds or investing it in higher-yielding options could also be beneficial.
Ultimately, it’s up to you to consider the advantages and disadvantages of both choices.
Exemption Of Existing Property Loan From TDSR
Even if you already have an existing property loan, you can still obtain a second loan.
For instance, if you’re looking to upgrade your HDB flat, your current mortgage payments won’t be calculated into your Total Debt Servicing Ratio (TDSR), which means it won’t affect the amount of money you can borrow for your new property.
To get the loan, you’ll need to provide certain documents such as a copy of the HDB approval letter and a letter of undertaking for the sale of your HDB flat.
If you’re selling an EC (after MOP) or a private property, you don’t have to worry about TDSR – simply provide a signed sale and purchase agreement with the buyer and a certificate from IRAS to prove stamp duty payment, and your monthly loan repayments are taken care of!
Should You Buy, Sell or Wait?
If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?
It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.
I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.
I can help you by:
- Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
- Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.
You May Also Like …
Top 5 : Greatest Challenges That Investors Face In Singapore’s Real Estate Market
Singapore's real estate market is a dynamic and attractive investment landscape for both local and international investors. Known for its...
Read More
Why Can’t More People Own Private Property?
TLDR The blog post discusses the aspirations of individuals like Siti and Mr. Tan regarding property ownership in Singapore. Siti...
Read More
5 Dangerous Ideas Singapore Property Investors Have
Singapore's property market has always been a hot topic among investors, both local and international. With its strong economy, stable...
Read More
Should You Splash Your Cash on a Condo Despite the Sky-High PSF?
TLDR The blog post discusses various aspects of investing in condos in Singapore, covering topics such as leasehold versus freehold...
Read More
Should I Move to a Private Property?
TLDR When considering an upgrade from HDB to private property in Singapore, it's essential to understand the differences and implications....
Read More
6 Compelling Reasons Why 3-Bedroom Condos Might Shrink Further
TLDR Three-bedroom units in Singapore have significantly downsized from 1,700-1,800 sq. ft. in the 1980s to around 1,000 sq. ft....
Read More
Top 5 Art Galleries in Singapore for Contemporary Art
Singapore, known for its modern architecture and vibrant culture, has a thriving art scene that showcases the best of contemporary...
Read More
Is Lifelong Renting a Viable Option in Singapore?
TLDR In Singapore, while the majority aspire to own homes, a small segment opts for lifelong renting, driven by personal...
Read More
Singapore Distressed Property Market in 2025: Separating Fact from Fiction
TLDR Mortgagee sale listings in Singapore rose in Q1 2025, mainly due to higher interest rates in recent years. Despite...
Read More
How Will Singapore’s Development Influence The Real Estate Markets In Bedok, Changi, Pasir Ris, And Tampines : 2023
TLDR You will find detailed insights into upcoming housing developments in the East of Singapore, specifically in areas like Bayshore,...
Read More
Singapore’s Real Estate Market: Disproving 5 Common Misconceptions
Singapore's real estate market is a complex and dynamic market that can be difficult to navigate for new investors. With...
Read More
Top 5 Reasons : Why is Supply so tight for Singapore Property?
Singapore's property market has been experiencing a tight supply in recent years, leading to increased demand and rising property prices....
Read More
Unveiling 4 Scenarios of CPF Accrued Interest Impact on Property Owners
TLDR When selling your first home, be aware of CPF accrued interest, which is the interest that would have accumulated...
Read More
5 Tips : How To Spot A Good Investment Opportunity In Singapore’s Property Market
Singapore's property market offers a plethora of investment opportunities for both local and foreign investors. To spot a good investment...
Read More
Can You Still Make Money from Older Freehold Condos in Singapore
TLDR While freehold condos might seem like a solid investment, the rise of new developments and aging buildings cast doubt...
Read More
Four Things to Avoid When Renting Out an HDB Flat
TLDR Renting out an HDB flat in Singapore can be a lucrative source of secondary income. Key considerations include adhering...
Read More
Common Misconceptions About Buying Property in Singapore’s Core Central Region (CCR) in 2025
TLDR Singapore’s Core Central Region (CCR) is often seen as a safe, luxurious, and exclusive property segment. However, this view...
Read More
Top 5 Mistakes to Avoid When Buying Property in Singapore – Expert Insights!
Purchasing a property in Singapore can be an exciting and rewarding experience, especially for those looking to invest in the...
Read More
Top 5 : Best Laser Tag Arenas in Singapore
Laser tag has become an increasingly popular activity in Singapore, offering adrenaline-pumping experiences for people of all ages. This exciting...
Read More
