Property-specific guidance for homeowners facing retrenchment: hold, sell, rent a room, downsize or restructure the loan. Mapped without straying into CPF, insurance or income advice that a licensed financial adviser should give.
A worked example of a couple in their 50s with a condo, a $620,000 loan and one income gone. Their runway was longer than they feared, and the right move was not the one the first agent suggested.
Downgrading frees cash and cuts the monthly bill, but the sale price is not the number that matters. What matters is what is left after the loan, fees and CPF refund, and what the next home costs to run.
Owner-occupiers refinancing are exempt from TDSR, which surprises most people. But a bank still has to approve you, and a lower rate rarely closes a full income gap. Here is how to tell which lever fits.
A missed instalment is not a lost home. HDB and banks both have steps before a forced sale. The owners who keep the most choice are the ones who call the lender before the first missed payment.
Retrenchment pushes owners to sell fast. Most have more time than it feels. Work out your mortgage runway first, then look at a room, the loan, a smaller home and a sale, in that order.
Free 2-minute Property Resilience Check: score your income stability, affordability buffer and holding pressure to see how exposed your property is.
Inflation. Retrenchment. Retirement. Legacy. Singapore property addresses all four, but only if you bought right and manage right. James explains the full argument in one article.
Equity loans in Singapore are capped at 75% of valuation, minus your loan and the CPF you used. Stay under 50% and TDSR does not apply. A worked example, the costs, and when selling is the better answer.
For HDB upgraders, renting is usually a bridge, not a lifestyle choice, driven by BTO/new-launch construction delays, the 15-month wait-out period rules for private property buyers, or simple market hesitation.