Thinking of upgrading from HDB to condo? Read this first.
A step-by-step guide for HDB owners considering their first condo. Covers timing, ABSD, CPF, and the numbers that actually matter.
Step 1 — Check your MOP
Your HDB has a 5-year Minimum Occupation Period (MOP). You can't sell it before this is up.
MOP starts from the date you collect your keys, not your BTO application date. Log into the HDB portal or dig out your key collection letter to confirm.
Step 2 — Understand ABSD
If you buy a condo before selling your HDB, you're buying it as a second property. That means 20% ABSD on the purchase price.
The simplest way to avoid it: sell your HDB first, then buy the condo. You'd be treated as a first-time buyer and pay 0% ABSD.
Step 3 — Run your CPF numbers
When you sell your HDB, whatever CPF you used for the purchase — plus accrued interest at 2.5% per year — gets refunded back to your CPF OA. This reduces your actual cash proceeds.
Check your CPF usage at my.cpf.gov.sg under "My Property" before you plan your budget.
Your real net proceeds = sale price minus outstanding loan minus CPF refund
The good news: the CPF refunded to your OA can be reused for the condo downpayment.
Step 4 — Figure out your actual budget
Don't start with the condo price. Start with what the bank will lend you.
Banks use TDSR (Total Debt Servicing Ratio), which caps your total monthly loan repayments at 55% of your gross income. Work out that number, subtract any existing loans, and that's your maximum monthly mortgage.