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Thread: Hdb loan - cash out ?

  1. #1
    Join Date
    Apr 2008
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    69

    Default Hdb loan - cash out ?

    I have fully paid my housing loan with hdb. If I need cash, can I mortgage the hdb flat with a private bank and draw out cash?

  2. #2
    Join Date
    Jan 2007
    Posts
    176

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    don't think so leh. if can i also wan

  3. #3
    Join Date
    Jan 2007
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    181

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    You can't. For senior citizens, you can reverse mortgage your HDB though.

  4. #4
    Join Date
    Apr 2008
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    69

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    Quote Originally Posted by McMuffin View Post
    You can't. For senior citizens, you can reverse mortgage your HDB though.
    Thanks. What is reverse mortgage ? How old is senior citizens?

  5. #5
    Join Date
    Jan 2007
    Posts
    106

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    Reverse mortgage according to the CPF Board:

    "A reverse mortgage is a type of home loan that allows you to convert some of the value in your home into cash while you retain home ownership.

    It works like traditional mortgages, only in reverse. For example, rather than making a payment to your lender each month, the lender pays you. The money can be used for living expenses, health care, children education expenses, etc.

    Reverse mortgages are typically used by retired homeowners who need to supplement their income.

    When the homeowner dies, sells the home, moves out or reaches the end of the pre-defined loan period (depending on the terms and conditions), the mortgage becomes due with interest. It is typically paid off from the proceeds of the sale of the home."

    NTUC and OCBC previously offered this facility but I think they withdrew this offering as it's not very popular. HDB's Lease Buyback Scheme (LBS) came up at around the same time reverse mortgages are withdrawn from the market. The LBS requires applicants to be 63 years old and above. Coincidentally, HDB is currently reviewing the LBS and should be announcing some changes in a few months.
    Last edited by HalcyonVI; 28th March 2012 at 03:38 PM.

  6. #6
    Join Date
    Jun 2012
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    if you've paid your housing loan fully with hdb, that means you own the flat isn't it? Then i don't see why you can't do what you want with it, including taking a mortgage out on it. Doesn't make sense.

  7. #7
    Join Date
    Oct 2012
    Posts
    2

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    But these are the rules of housing loan and as you are not the senior citizen, you are not allow to take the reverse mortgage.

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