Surprising fact: over 50% of HDB sellers must return CPF OA savings plus interest when they sell a flat, affecting the net proceeds they have on hand.
Imagine planning your next move and wanting a clear yes-or-no on whether CPF OA covers the resale levy. The short answer: the HDB resale levy is not payable using CPF OA. It must be settled from sale proceeds or cash.
This intro maps the essentials. You will learn how levy rules shape your timeline and eligibility in Singapore’s housing ecosystem.
The guide also lists what CPF OA does cover: Buyer’s Stamp Duty, legal and conveyancing fees, caveat and registration charges, and survey fees. Typical external solicitor fees range from about $2,500 to $3,000, depending on whether a bank loan is used.
Finally, we explain refunds: any CPF OA sums used on a purchase must be returned with accrued interest when the hdb flat is sold. That affects the amount you actually keep and the order of deductions if HDB or a bank handles conveyancing.
Key Takeaways
- The HDB resale levy cannot be paid using CPF OA; use sale proceeds or cash.
- CPF OA covers BSD, legal fees, caveat and registration, and survey costs.
- Sell a flat and you must refund CPF OA used plus accrued interest.
- Conveyancing fees vary: HDB scales or external solicitors (~$2,500–$3,000).
- Deduction order differs between HDB-managed and bank loans; this affects net proceeds.
Understanding Search Intent: What Singapore buyers mean by “can i pay resale levy with cpf”
Imagine you are weighing an upgrade and typing that phrase into search. You want a clear impact on budget, timing, and eligibility before you choose a place to buy next.
Key decisions: second subsidised flat, EC, or private property
You’re likely choosing between another HDB flat, an Executive Condo, or private property. That choice changes whether the levy affects your subsidy and how much cash you must hold on closing.
Why the answer affects cash flow, timelines, and grant eligibility
Important: the rule alters your move timeline. Selling a resale flat before buying reduces short-term cash strain. Buying second while holding the first can create a funding gap at handover.
- Review expected sale proceeds and adjust market price targets.
- Check grant eligibility early if you are buying second.
- Plan keys, sale completion, and the amount you must have ready.
Can I pay resale levy with CPF?
Imagine your completion day. You want clarity on which sums leave your account and which are settled from sale proceeds.
The short answer: no — the hdb resale levy must be settled from your flat’s sale proceeds and, if needed, from cash.
The term sale proceeds means what remains after the outstanding loan is redeemed and mandatory fees are deducted. That amount is what is available for the levy, refunds, and any final payment obligations.
What happens if proceeds fall short?
If proceeds are insufficient after deductions, you may need to top up the shortfall in cash depending on the payment timeline and whether you used an HDB loan or a bank loan.
- HDB loan case: deduction order is outstanding loan, then levy, then required cpf refund.
- Bank loan case: the required cpf refund can come earlier, which may reduce what’s left for the levy.
- If the flat sells at market value and there isn’t enough to fully refund prior cpf use, the shortfall is generally absorbed without a cash top-up; refunds are proportional.
| Case | Deduction Order | Implication for Cash |
|---|---|---|
| HDB loan | Loan → Levy → CPF refund | Higher chance you must provide cash for levy if proceeds low |
| Bank loan | Loan → CPF refund → Levy | Less left for levy if refunds occur early |
| Sold at market value | Proceeds used proportionally for refunds | No cash top-up usually needed for CPF shortfall |
Plan multiple sale price scenarios to estimate the amount you need to settle the hdb resale levy and to protect your cash buffer. Doing this keeps surprises off your completion checklist.
What is the HDB resale levy and who needs to pay it
Learn which transactions trigger the HDB resale levy so you avoid surprise costs.
The hdb resale levy is a charge applied when you sell a subsidised home and then buy another subsidised HDB flat or a new Executive Condominium from a developer. It exists to keep subsidies fair between first-time buyers and people who have already received help.
In practical terms, you would need pay this amount if your next purchase is another subsidised flat or a new EC bought directly from a developer after selling your first subsidised home.
When it does not apply
You do not need pay the charge if your next move is an HDB resale flat on the open market.
- No levy if you buy a DBSS from a developer.
- No levy for a private residential property purchase.
- The rule follows the subsidised status of your first and second homes, regardless of joint tenancy or tenancy-in-common.
This distinction helps you shape your housing strategy. Choosing a resale flat or private property may avoid levy exposure and change how you fund the move.
How the resale levy amount is determined
Imagine knowing the exact figure before you list or bid on a new flat. The levy rules split into clear categories based on the date your first subsidised home was sold and the flat type you originally owned.
Fixed amount schedule for flats sold on or after 3 March 2006
Fixed amount charges give certainty. For first subsidised flats sold on or after the date of 3 March 2006 the schedule is: $15,000 (2-room), $30,000 (3-room), $40,000 (4-room), $45,000 (5-room), $50,000 (Executive) and $55,000 (Executive Condominium).
Singles Grant recipients
If you received a Singles Grant, you typically pay half the household levy when forming a family nucleus and buying a second subsidised flat. This lowers the amount you must set aside compared to a full household figure.
Pre-3 March 2006 cases and interest
For first subsidised homes sold before that date the charge is a graded percentage of price or 90% of valuation (whichever is higher): examples include 3-room 20% and 4-room 22.5%.
Deferring payment until your next purchase attracts 5% per annum interest on the deferred sum.
Elderly right-sizing waivers
From Nov 2015 elderly right-sizing may waive interest for sellers aged 55+ moving to a 3-room or smaller flat. Minimum fixed amounts still apply by flat type.
For detail on scenarios and impacts to your budget, read this guide: navigating the HDB resale levy.
Payment mechanics: HDB loan vs bank loan — deduction order matters
Imagine completion day arriving and the settlement ledger unfolding. Understanding who gets paid first helps you plan cash flow and avoid last-minute shortfalls.
HDB loan case: the outstanding HDB loan is redeemed first. Next, the HDB resale levy is deducted. Finally, any required cpf refund (principal plus accrued interest) is returned. If proceeds from a market sale don’t fully cover the required refund, refunds are made proportionally and no extra cash top-up is usually needed.
Bank loan case: your bank mortgage is settled first. Then the required cpf refund is returned. The charge follows after that. This order can leave less available at completion, so planning the payment timeline is vital.
Implications for net cash out and timing of proceeds
- The deduction sequence determines how much you actually keep after a sale and how easily you meet pay resale levy obligations.
- With an HDB mortgage, the charge is taken before cpf refunds, which may preserve immediate net proceeds compared to the bank case.
- With a bank mortgage, refunds occur earlier and can reduce cash available to fund your next flat purchase.
- Always model both orders against realistic sale prices and align your solicitor’s process to the loan redemption steps to avoid delays.
| Case | Deduction order | Key implication |
|---|---|---|
| HDB loan | Outstanding loan → HDB charge → CPF refund | Charge reduces balance before refunds; may preserve short-term proceeds |
| Bank loan | Outstanding loan → CPF refund → HDB charge | Refunds earlier; less cash left at completion for obligations |
| Market sale shortfall | Proceeds used proportionally for refunds | No cash top-up usually required if full refund not possible |
Timeline scenarios that change when and how you pay
Imagine laying out the key dates so you know exactly when funds leave your hands and what remains from a sale.
Selling the first subsidized flat before taking possession of the second
If you complete the sale first, the cash for the levy must be ready at the time you collect keys for the next flat.
Practical result: you gain certainty about sale proceeds and the exact amount to reserve, but you may need temporary place arrangements between moves.
Selling the first subsidized flat after taking possession of the second
If you keep the first flat until after moving into the new home, the levy is taken from the later sale proceeds.
That reduces upfront disruption to your living situation, yet you would need a plan if the sale amount falls short and shortfall requires cash top-up.
Possession conditions and cash requirements at key milestones
Map each milestone: option date, completion date, key collection date, and actual sale completion date. Match those dates to the cash you must hold.
- Scenario 1: temporary housing may be needed; have the cash ready at key collection.
- Scenario 2: monitor market time closely so the sale proceeds arrive on schedule.
- Always quantify the exact amount due and keep buffer funds for renovations and moving.
What you can and cannot pay with CPF when buying a home
Imagine closing week and knowing which bills CPF OA will handle. Before you commit funds, know exactly which home-buying charges CPF OA will cover and which require cash or sale proceeds.
Costs payable using CPF OA
- Buyer’s Stamp Duty (BSD) — for completed property you may pay cash then reclaim from CPF.
- Legal and conveyancing fees charged by HDB or an external solicitor.
- Caveat fee ($128.90), title search ($32), Lease/Mortgage in‑Escrow registration ($38.30 each).
- Survey fees (typically $162–$405) and other standard registration charges.
What is not payable using CPF OA
The HDB resale levy is not payable using CPF OA. That amount must be settled from sale proceeds or cash on completion.
HPS premiums and monthly mortgage use
If you choose to fund monthly mortgage instalments from CPF OA, Home Protection Scheme (HPS) premiums may be paid from the same account. HPS is compulsory when monthly mortgage repayments are drawn from CPF.
Practical checklist
- List each fee and confirm CPF eligibility early to avoid funding gaps.
- Earmark sale proceeds or cash for any HDB resale levy amount due at completion.
- For extra reading on related rules and scenarios, see this guide: using CPF for HDB levy queries.
Planning your cash and CPF strategy for a second move
Knowing which sums leave your accounts at each milestone helps you choose the right property type.
Start by ringfencing the expected resale levy amount and then layer in other near-term costs.
Budget items to include:
- Buyer’s Stamp Duty and valuation charges.
- Town Council S&CC, property tax and five-year HDB fire insurance premiums.
- Solicitor fees for a bank mortgage (typically $2,500–$3,000) and HPS premiums if you draw monthly mortgage from accounts.
Test scenarios for another subsidised flat, a new EC, an HDB resale flat on the open market, or private property. The charge applies only when you move to another subsidised option, so your choice affects how much cash you must hold at handover.
Revisit your cpf housing grant history and PHG eligibility early. Grants change your household status and influence whether you need cash at completion. Track years to major milestones and align housing decisions to long-term plans for properties, mortgage cost, and liquidity.
Conclusion
, Imagine the settlement ledger on completion day: that view helps you avoid surprises and control the outcome.
Bottom line: the hdb resale levy must be settled from sale proceeds and/or cash. If your first subsidised home was sold on or after 3 March 2006, the charge follows a fixed amount schedule. Earlier cases may face graded percentages and 5% p.a. interest if payment is deferred for years.
Decide early whether you will target another subsidised flat or an EC. If you prefer to avoid the charge, consider a private property or an HDB resale flat on the open market. Model both HDB and bank deduction orders, test price scenarios, then line up the exact amount and timing for your next home purchase.
FAQ
What do buyers mean when they ask "Can I pay resale levy with CPF"?
You are asking whether the fixed HDB resale levy required when moving to another subsidized flat or a new executive condominium can be settled using funds from your CPF Ordinary Account. This question usually reflects concerns about cash flow, timing of sale proceeds, and eligibility for housing grants when buying a second subsidised home or switching to private housing.
Does the resale levy affect whether I choose a second subsidised HDB flat, an EC, or private property?
Yes. The levy influences the total cash you must bring to the transaction and can sway your decision between another subsidised flat, an EC from a developer, or private property. A levy increases up-front cash needs and can reduce available CPF funds that would otherwise finance down payment or monthly mortgage obligations.
Why does the answer change my cash flow, timeline, and grant eligibility?
The levy is payable at key transaction milestones. If you cannot fund it from sale proceeds, you need cash. That affects when you must sell, when you can take possession of a new unit, and whether you remain eligible for grants such as the CPF Housing Grant or the Proximity Housing Grant. Timing also affects whether interest on deferred levy applies in older cases.
Can I pay the HDB resale levy using CPF Ordinary Account funds?
No — the levy must be paid using sale proceeds from your existing subsidised flat and/or cash. CPF OA cannot be used to settle the levy itself. You can use CPF for many parts of a home purchase, but not for this specific levy.
What counts as sale proceeds, and what happens if sale proceeds are insufficient?
Sale proceeds refer to the net amount from selling your subsidised HDB flat after repaying outstanding housing loans and required CPF refunds. If proceeds fall short of the levy, you must cover the shortfall in cash at the relevant settlement or HDB appointment.
Who must pay the HDB resale levy?
Households who previously bought a subsidised HDB flat and are purchasing another subsidised HDB flat or a new executive condominium from a developer must pay the levy. It is a condition to ensure continued fair allocation of subsidised housing.
When does the levy not apply?
The levy does not apply if you buy a HDB resale flat from the open market without further subsidy, purchase a Design, Build and Sell Scheme (DBSS) or buy private residential property. It also does not apply when the next purchase is clearly unsubsidised.
How is the resale levy amount determined for flats sold on or after 3 March 2006?
For sales from that date, the levy follows a fixed amount schedule determined by HDB. The exact fixed amounts depend on household profile and prior subsidies received. HDB publishes the schedule and specific amounts for different household types.
What about singles who received grants — do they pay the same levy?
Singles who received housing grants typically pay half the household levy amount. HDB provides specific rules for single applicants and how the levy is apportioned in those cases.
How were levies handled for flats sold before 3 March 2006?
Pre-3 March 2006 cases used a graded percentage method and, if deferred, attracted interest at 5% on the deferred portion. HDB maintains legacy rules for older sales, including minimum fixed amounts in certain situations.
Are there elderly waivers or concessions on interest and minimum amounts?
Yes. Elderly right-sizing schemes and specific concessions can waive interest or reduce minimum levy amounts in qualifying situations. Eligibility depends on HDB criteria such as age, household makeup, and the nature of the transaction.
How do payment mechanics differ between an HDB loan and a bank loan?
With an HDB loan, HDB deducts the outstanding loan first, then the resale levy, and finally required CPF refunds before releasing remaining proceeds. With a bank loan, the bank typically deducts the outstanding loan, CPF refunds are processed next, and the resale levy is paid thereafter. The deduction order affects how much cash you must provide and timing of funds.
What are the implications for net cash out and timing of proceeds?
Deduction order can create a cash shortfall at key milestones. If the levy is deducted earlier in the chain, you may receive smaller net proceeds and need cash to complete a new purchase. Understanding the sequence helps you plan bridge financing or sale timing.
How does selling before taking possession of a second subsidised flat change payments?
If you sell your first subsidised flat before taking possession of the second, you usually pay the levy at completion, using sale proceeds. This can free up funds for the new purchase but requires careful coordination of dates to avoid a gap in housing or cash.
What if you sell the first subsidised flat after taking possession of the second?
If you take possession of the second subsidised flat first, you must show you can pay the levy and meet HDB’s conditions. HDB may require cash or guarantees at key appointments. Late sale of the first unit raises liquidity risks and could affect ability to meet levy obligations.
When can you use CPF OA funds during a home purchase?
CPF OA can be used for many payable items in a purchase: Buyer’s Stamp Duty, legal and conveyancing fees, caveat fees, and surveyor fees where allowed. CPF can also cover down payments, monthly mortgage payments (subject to limits), and HPS premiums in certain cases.
Which items cannot be paid using CPF OA?
The HDB resale levy cannot be settled with CPF OA. Other non-CPF-payable items include some cash-only fees and any shortfall in cash caused by levy deductions. You must use sale proceeds or cash to satisfy the levy.
Can CPF pay HPS premiums and monthly mortgage payments?
CPF can pay HDB or bank mortgage installments and Mortgage Servicing Ratio–compliant amounts from OA savings, and it can also be used for certain Home Protection Scheme premiums depending on the plan. Check CPF Board rules and loan terms to confirm allowable uses.
How should I budget for the resale levy alongside other transaction costs?
Treat the levy as a separate cash requirement when planning. Budget it with Buyer’s Stamp Duty, stamp fees, legal fees, S&CC, insurance, agent commissions, and taxes. Factor in worst-case timing where sale proceeds are delayed to avoid last-minute cash shortfalls.
How does choosing between another subsidised flat, an EC, an HDB resale flat, or private property affect levy strategy?
Choosing another subsidised flat or a new EC triggers the levy, increasing upfront cash needs. Buying an HDB resale flat on the open market or private property avoids the levy but changes grant eligibility and CPF grant history. Align your choice with long-term financing and grant considerations.
How do past grants affect levy and eligibility for future subsidies?
Your grant history — such as CPF Housing Grant or Proximity Housing Grant — influences levy obligations and eligibility for future grants. Receiving prior grants can increase levy liability or disqualify you from certain future subsidies. Review HDB grant rules when planning a second move.
Where can I confirm the exact levy amount and payment process for my case?
Check HDB’s official website or contact HDB customer service for the definitive fixed amount schedule, concession rules, and transaction-specific guidance. Your solicitor and mortgage advisor can also clarify how deductions and CPF refunds will be handled in your sale and purchase.
