17 Jul How to Upgrade From An HDB Flat To An EC
Piermont Grand, a tranquil oasis nestled in the heart of Punggol, will soon be making its majestic entrance into the property market. Being the sole executive condominium to be launched this year, this new kid on the block is receiving a great deal of attention from both homeowners and investors alike. Riding on the hype for the exclusive launch of this EC, here’s a guide on how to upgrade from an HDB flat to an EC.
What is an EC?
An executive condominium (EC) is an amalgam of public and private housing. It is a housing option that is very well received amongst the ‘sandwiched’ class – Singaporeans whose income is greater than the income ceiling for public housing, but do not have sufficient finances to own a private condominium. Nonetheless, this does not mean that an EC falls short of a private condominium. If anything, an EC offers the full suite of condominium facilities, at a more affordable price.
Why upgrade to an EC?
Many homeowners who have worked their way up the corporate ladder wish to reward themselves with a lifestyle upgrade. What better way to enhance one’s way of living than by purchasing a more ‘luxurious’ yet affordable home that is guarded by security and comes with its own pool and gym facilities?
When to upgrade to an EC?
No matter how attractive upgrading from an HDB flat to an EC sounds, you cannot upgrade as and when you wish. According to HDB’s regulations, you can only do so after fulfilling the Minimum Occupation Period (MOP), which is 5 years.
The Minimum Occupation Period is a period of time which the homeowners are necessitated to physically live in the flat before putting it up for sale. It is calculated from the date of key collection and does not include any period where the homeowners do not live in the flat, such as when the entire flat is rented out.
How to upgrade to an EC?
Essentially, this process involves 10 simple steps.
- Go to the EC Showroom and Submit an E-Application. : This E-Application is necessary for you to join the ballot for an EC unit. In the E-Application, you will have to state your personal particulars, household status, employment status and income as well as declare any housing subsidies you have received in your previous property purchase. After signing the E-Application, a queue number will be issued. This queue number will be used on the balloting day.
- Go Through the EC’s Price List : A few days prior to the balloting day, the EC’s price list will be issued to all buyers who have indicated their interest to join the ballot. Take some time to carefully analyse the various options (the layout of the unit, the floor area, the floor level, etc.) and think through which unit(s) you have an inclination for.
- Secure the Unit that You Fancy : On the balloting day, your queue number will be called at random. When your turn arrives, this will be the moment of truth where you find out whether or not that particular unit which you have set your heart on is still available. If it is, and you want to commit to the purchase, pay the 5% booking fee, sign the Option to Purchase (OTP), and that unit is reserved for you!
- Submit All Necessary Documents to HDB : The required documents will include the registration form, the buyers’ payslips, etc. If you are worried about the cumbersome paperwork involved, fret not, as our mortgage specialists can assist you through this process.
- Take Out a Bank Loan : Here at FinanceGuru, we compare rates across the board to make sure you get the right deal. Once favourable rates are identified and secured, we will ensure that the deal is executed. Contact us now @ 98 90 90 90 or drop us an email @ [email protected]
- HDB Approval : HDB will appraise your application and determine whether or not you are eligible to purchase the EC. Once HDB has granted approval, the developer will be notified. Subsequently, the developer will send your appointed lawyer the Sales and Purchase (S&P) Agreement.
- Exercise the OTP : You have to exercise the Option to Purchase (OTP) within three weeks after your lawyer has received the Sales and Purchase Agreement.
- Pay Stamp Duty
- Choose Between Normal Payment Scheme and Deferred Payment Scheme : Buyers who have not sold their existing HDB flat would often choose to opt for the deferred payment scheme. This is because under the deferred payment scheme, buyers are only required to repay their monthly mortgage loan instalments for the EC after they have collected their keys.On the other hand, under the normal payment scheme, buyers who still own an HDB flat will have to pay both their current HDB loan as well as the bank loan that they have taken out for the purchase of the EC, putting a strain on their finances.
- Key Collection : All that’s left to do is to look forward to your key collection date. Congratulations on your new home!
We hope that this guide has served you well. If you wish to ask more about the nitty-gritty details involved in upgrading from an HDB flat to an EC, or simply have a few questions regarding anything related to mortgage, feel free to contact us @ 98 90 90 90 or drop us an email @ [email protected]. Who knows? That Piermont Grand unit facing the waterfront may soon be the place you call home.