How to Upgrade to an Executive Condominium Before Selling Your HDB
- Stuart Chng
- Dec 17, 2025
- 5 min read
In a perfect scenario, you would sell your flat, use the proceeds, and move straight into your new EC. In reality, the process is more complex. Apart from financing and down payment requirements, there is also the practical issue of accommodation while the EC is still under construction.
If you are considering an EC upgrade, here are the key points you should understand.
Key Financing Considerations
If you originally purchased your HDB using a bank loan, much of this may already be familiar. However, if you took an HDB Concessionary Loan, the differences are important.
When buying an HDB flat with a concessionary loan, you could borrow up to 90% of the lower of the purchase price or valuation. The remaining 10% could be paid using cash, CPF, or a combination of both. Many buyers did not even need to use cash at all.
This structure does not apply when purchasing an EC. ECs are not eligible for HDB loans, which means you must rely on bank financing.
With a bank loan, the maximum loan amount is capped at 75% of the property price or valuation, whichever is lower. Up to 20% can be paid using CPF or cash, but at least 5% of the purchase price must be paid in cash.
For example, if an EC is priced at $900,000, you must prepare a minimum of $45,000 in cash. Under MAS Notice 632, banks are not allowed to finance any portion of this cash down payment.
No ABSD When Moving from HDB to EC
Those who are upgrading from HDB to private condos have to pay the ABSD within two weeks of signing the purchase agreement.
They can then apply for a Matrimonial Home ABSD remission upon selling their 1st property and get a refund if certain conditions are met (Read more).
For example, 1 of the condition is that a couple will have to sell their HDB within 6 months of Option Acceptance of their 2nd property (For resale properties) or 6 months of TOP (For building in progress properties) in order to qualify for the ABSD remission.
This requirement does not apply when upgrading from an HDB to an EC, making the transition more straightforward.
Two Payment Schemes for Buying an EC
There are two main ways to finance your EC purchase.
1. Progressive Payment Scheme (Normal Payment Scheme)
Under the Progressive Payment Scheme (also known as the Normal Payment Scheme or NPS), you begin servicing your EC loan as construction progresses. This means you will be paying for your EC while still servicing the loan on your existing HDB.
The upside of choosing this scheme is that developers typically price units about 3% lower for buyers using the NPS.
In addition, monthly repayments start relatively low and increase gradually as the building reaches each construction milestone.
Below is a typical payment structure for a buyer using 5% cash, 20% CPF, and a 75% bank loan under the NPS. (Note: CPF payments can also be replaced with cash if preferred.)
Stage 1: Option to Purchase (OTP)
5% paid in cash
Stage 2: Sale, Purchase Agreement & Stamp Duties
15% paid via CPF within about 9 weeks
Buyer’s Stamp Duty paid within 2 weeks (initially in cash, with CPF reimbursement later)
Stage 3: Completion of foundation works (~6 months)
5% via CPF
5% disbursed from the home loan (monthly repayments begin)
Stage 4: Completion of reinforced concrete framework (~12 months)
10% from the home loan (monthly repayments will increase)
Stage 5: Completion of brick walls (~18 months)
5% from the home loan (monthly repayments will increase)
Stage 6: Completion of roofing and ceilings (~21 months)
5% from the home loan(monthly repayments will increase)
Stage 7: Completion of windows, doors, wiring, and plumbing (~24 months)
5% from the home loan (monthly repayments will increase)
Stage 8: Completion of roads, car parks, and drainage (~27 months)
5% from the home loan (monthly repayments will increase)
Stage 9: Temporary Occupation Permit (TOP) - your developer will give you an indicative date for this. It is usually 3 - 4 years later for a brand new launch.
25% from the home loan (monthly repayments will increase)
Stage 10: Completion of Sales & Purchase, issuance of Certificate of Statutory Completion (CSC) and 12 months after TOP
Final 15% from the home loan (monthly repayments will increase)
2. Deferred Payment Scheme (DPS)
For homeowners who are unable to manage two loans at the same time, the Deferred Payment Scheme (DPS) offers a more manageable alternative.
Under the DPS, you pay:
5% in cash when securing the OTP
15% in cash or CPF upon completing the Sale & Purchase Agreement
Stamp duties within the required timeline (within 2 weeks of completing the purchase agreement)
After that, no further payments are required until the EC receives its TOP.
If the TOP is scheduled three years later, you effectively have three years without servicing any home loan. This allows you time to accumulate savings and sell your HDB closer to key collection.
Upon TOP, you will pay 65%, with the remaining balance paid around the time the Certificate of Statutory Completion is issued.
The trade-off is cost. Properties under the DPS are typically priced about 3% higher. However, this premium can be offset by the interest savings and the reduced financial stress of not servicing a bank loan during construction.
Final Thoughts
Upgrading to an EC before selling your HDB is entirely possible with the right planning and payment structure.
Understanding your financing limits, choosing the right payment scheme, and timing your HDB sale carefully can make the process far smoother and more affordable than many homeowners expect.
If you are considering this upgrade path, proper planning can help you move forward confidently without overextending your finances.
Need an opinion on your property investment plans, the best buys available or help marketing your properties?
Get a 1-time free 30 min Property Wealth Planning consultation with Stuart and his team of Property Wealth Planners.
Schedule one right now.
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- An in-depth financial affordability assessment and timeline planning
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- A clear and customised investment road map
- A curated list of best buys in today's market with good growth potential & minimal risks
- Selecting units with the highest potential in a new launch project
- Advice on marketing and getting a buyer for your property fast
Stuart Chng, Executive Group District Director at Huttons, is a renowned leader and personality in the real estate industry.
He adores music and can play a few instruments decently without upsetting his neighbours. When not doing so, he enjoys pillow fighting with his son and coming up with silly puns which barely amuses his wife.
Professionally, he is a licensed real estate agent, an avid stocks, options and real estate investor, business owner, team leader, speaker and columnist for several property newsletters and blogs and is often quoted in media interviews on 938FM, Channel 8, PropertyReport, PropertyGuru and other publications.
Throughout his career, he has helped many clients grow their wealth through selecting great property investments and managing their portfolios actively. Read his clients' reviews here.
Stuart has also coached many top million dollar producing agents from top real estate agencies in Singapore. Read his agents' reviews here.
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