you must upgrade, to be eligibile for HDB loan. But if you buy another new HDB house, then you'll have to pay for levy for existing house. http://www.hdb.gov.sg/fi10/fi10203p.nsf/WP...29?OpenDocument The resale levy is payable when the 2nd-timer buys or takes over the ownership of another subsidised flat. Below gives a guide on when resale levy is payable. First Subsidised Flat Type New Resale Levy (from 3 March 2006)* 5-room -> $45,000