Buy First or Sell First: Essential Financing Strategies for Singapore Property Upgraders
For Singapore property upgraders, the core decision is whether to buy first or sell first. Buying first secures your dream home but requires a bridging loan to cover the gap until your current property sells, while selling first avoids overlap risks but means temporary renting. Homejourney recommends buying first only if you qualify for a bridging loan with rates around 4.5-5.5% p.a., based on current SORA benchmarks[1][2]. This guide compares bank rates across DBS, OCBC, UOB and more, helping you choose the best property upgrade strategy.
At Homejourney, user safety comes first—we verify all rates in real-time and let banks compete for your business via one Singpass-enabled application. Compare rates instantly at https://www.homejourney.sg/bank-rates to time your upgrade timing perfectly[2].
Understanding Buy First Sell First Risks and Rewards
Buy first lets you secure a new condo in high-demand areas like RCR (Rest of Central Region) before selling your HDB, avoiding bidding wars. However, you'll need 25% downpayment on the new property (75% LTV max for second properties) plus a bridging loan for up to 6-12 months[1][2]. Example: Upgrading from a $800k HDB in Yishun to a $2.4M RCR condo requires $600k downpayment, with $120k cash minimum[2].
Sell first releases equity but risks renting at $4-6k/month while hunting. For HDB upgraders, over 100,000 flats hit MOP by 2023, fueling demand[2]. Use Homejourney's mortgage calculator at https://www.homejourney.sg/bank-rates#calculator to test scenarios.
Bridging Loan Upgrade: When to Use It
A bridging loan finances the overlap, typically 50-75% of your current property's value at 4.8-5.5% p.a. (SORA + 1.5-2.5% spread). Ideal for strong profiles: household income >$18k, TDSR <55%[1]. Banks like DBS offer up to 12 months with no penalties post-sale. Insider tip: Time sales post-MOP (5 years for HDB) to maximize proceeds[4].
- Pros: Lock in upgrade now; no renting stress.
- Cons: Higher interest (~$5k/month on $1M bridge); ABSD 20% on second buy for citizens[6].
- Action: Check eligibility on Homejourney—auto-fills via Singpass for instant quotes.
Singapore Bank Rate Comparison: Top Lenders for Upgrades (Dec 2025)
Homejourney aggregates live rates from 11 banks. Current 3M SORA: ~3.0%, so PEAKRATE loans average 3.8-4.5% effective. Fixed rates 3.5-4.0% for 2-3 years. Compare at https://www.homejourney.sg/bank-rates—see real-time updates[2].
| Bank | Best Product | Rate (SORA+Spread) | Lock-in | Best For |
|---|---|---|---|---|
| DBS | PEAKRATE | 3.0% + 1.49% = 4.49% | 2 yrs | HDB upgraders |
| OCBC | 360 Account Rate | 3.0% + 1.40% = 4.40% | 3 yrs | Concurrent purchase |
| UOB | HomeSmart | 3.0% + 1.55% = 4.55% | 2 yrs | Bridging loans |
| HSBC | Fixed 3 yrs | 3.80% fixed | 3 yrs | Rate stability |
| Standard Chartered | SC Home Loan | 3.0% + 1.60% = 4.60% | 2 yrs | Investors |
| Maybank | Home eLoan | 3.0% + 1.45% = 4.45% | 2 yrs | Competitive fees |
Rates as of Dec 2025; DBS leads for upgraders with fast bridging approval (7-14 days)[2]. OCBC best for concurrent purchase with 0.1% lower spreads. Use Homejourney to submit one app—get offers from all[1]. Disclaimer: Rates fluctuate; consult professionals. Not financial advice.
Pros, Cons & Who Wins for Upgrades
- DBS: Pros: Top digital app via digibank, 24/7 support. Cons: Higher penalty (1.5%). Best: HDB-to-condo[2].
- OCBC: Pros: Lowest spreads, easy refinance. Cons: Stricter TDSR. Best: High-income ($20k+)[2].
- UOB: Pros: Flexible bridging up to 80% LTV. Cons: Slower processing (21 days). Best: Sell-first[2].
Maybank/CIMB shine for foreigners/PRs (30% ABSD)[6]. Track SORA on Homejourney for upgrade timing.
Actionable Steps: Your Property Upgrade Financing Plan
- Assess Eligibility: Use Homejourney calculator—input $18k income, $800k HDB equity for $2M condo sim[2].
- Compare Rates: Visit https://www.homejourney.sg/bank-rates; filter bridging loans.
- Apply Multi-Bank: One Singpass form—banks bid (e.g., DBS 4.49% vs UOB 4.55%).
- Time It: Buy first if equity covers 25% down + bridge; sell first if cash-tight[1].
- Search Properties: Find budgets at https://www.homejourney.sg/search.
For full strategies, see our pillar: Buy First or Sell First: Upgrade Financing Strategies | Homejourney.
FAQ: Buy First or Sell First Property Upgrades
Q: Can I buy first without selling my HDB?
A: Yes, with bridging loan up to 75% of HDB value, but pay 20% ABSD. Homejourney compares best rates[1][6].
Q: What's the cheapest bridging loan in 2025?
A: OCBC at SORA+1.40% (~4.40%). Verify live on https://www.homejourney.sg/bank-rates[2].
Q: HDB upgrader ABSD rules?
A: 0% first, 20% second (citizens). Use proceeds to offset[6].
Q: How long for multi-bank approval?
A: 7-21 days via Homejourney's Singpass system—faster than solo apps.
Q: Best bank for concurrent purchase?
A: DBS/OCBC for low spreads and quick bridging[2].
Trust Homejourney for safe upgrades—compare rates, calculate eligibility, and apply securely today at https://www.homejourney.sg/bank-rates. Link to our ultimate guide: Buy First or Sell First: Homejourney's Ultimate Upgrade Guide 2025.