Surprising fact: nearly one in three second subsidised home purchases triggers an added cost that cuts your previous subsidy — and that cost can change how you time your next purchase.
Imagine you bought an HDB flat years ago, then plan to buy a second subsidised flat or a new EC. You may have to pay a resale levy that reduces the original subsidy on your first home.
The levy applies when a buyer previously held a subsidised flat, a resale flat with a CPF Housing Grant, a DBSS, or a developer EC and now buys another subsidised unit. You do not need to pay it if you move into an HDB resale flat or a private residential property.
Key rules matter: the charge is set at booking, depends on the sale date of your first subsidised flat (fixed sums or percentage), and must be settled from sale proceeds or cash. CPF and HDB mortgage financing cannot be used.
Key Takeaways
- The resale levy reduces the subsidy on your second subsidised flat and is charged at booking.
- You need to pay resale levy if you upgrade from a first subsidised flat or developer EC to another subsidised unit.
- No levy is due when you buy an HDB resale flat or private residential property.
- Fixed sums apply for flats sold from March 3, 2006; earlier sales use a percentage-graded framework.
- Deferring payment incurs 5% p.a. interest; Singles Grant recipients pay half when forming a family.
What the Resale Levy Is and Why It Exists
Think of the levy as a fairness tool. When you previously received a subsidy for a first flat, the system reduces the level of support available if you later buy another government-subsidised unit.
Purpose: The policy balances subsidies so first-time buyers keep priority access to public housing funds. It prevents double-dipping and helps sustain the pool of grants for new entrants.
How subsidies trigger future obligations
If you bought directly from HDB, used a CPF Housing Grant on a resale purchase, or acquired a DBSS or EC unit from a developer, that earlier support counts as a subsidy. That recorded subsidy is the trigger that may require you to pay the levy when you next buy a subsidised flat.
- It focuses on whether public assistance was received, not just the flat type.
- The rule applies regardless of joint tenancy or tenancy-in-common.
- It supports long-term housing sustainability by preserving grant funds for first-timers.
| Subsidy Source | Counts as Subsidy? | Future Impact |
|---|---|---|
| HDB BTO purchase | Yes | May require payment on next subsidised flat |
| Resale flat with CPF grant | Yes | Recorded subsidy triggers obligation |
| Developer DBSS or EC purchase | Yes | Developer subsidy treated like public support |
Which Homes Count as a “Subsidised Flat” or EC
Start by checking whether your past property benefitted from a government housing grant or similar aid. That status determines whether your next purchase is treated as a subsidised flat for future rules.
HDB BTO and resale flats with CPF support
Flats bought directly from HDB, including BTO units, count as subsidised housing. Resale flats that used a CPF Housing Grant also qualify, even if purchased on the open market.
Developer purchases and other public benefits
DBSS flats and Executive Condominium units purchased from a developer are treated as subsidised. Other public benefits — such as SERS compensation or HUDC privatisation benefits — also put a flat into this category.
- Why it matters: the record of any grant or subsidy at the time of your next purchase triggers obligations.
- Check your history: verify any grants on past sales before you decide on another subsidised flat.
For EC-specific booking and conditions, review the official conditions after buying for EC to confirm how prior subsidies affect payment at booking and later possession.
When You Need to Pay the Resale Levy—and When You Don’t
Before you sign on a new subsidised purchase, check whether your past public support creates a payment obligation.
Need pay—you must pay when you sell a subsidised flat and then buy a second subsidised flat from HDB or buy a new EC from a developer. The obligation crystallizes at booking or when you complete the next subsidised purchase.
Cases that require payment
- You need pay if you move from your first subsidised flat into another HDB-subsidised flat.
- You need pay if you buy a new developer EC after disposing of the earlier subsidised home.
When no payment is due
You do not have to pay if you buy an HDB resale flat on the open market. You also do not need to pay when you buy private property or a private residential property.
Ownership type and timing
Ownership structure—whether joint tenancy or tenancy-in-common—does not change the obligation. The trigger is moving into a second subsidised option, not merely the sale of your previous flat.
- Checklist: confirm past subsidy records; choose private or resale HDB if you want a levy-free path; plan payment and documentation ahead of booking.
executive condo resale levy
Booking a new EC fixes the charge you may need to pay. If your first flat had a subsidy, HDB measures the amount at the point you book a unit with a developer. That figure dictates your immediate cash planning.
You cannot use CPF savings or HDB mortgage financing to settle this payment. Payment must come from your sale proceeds and/or cash. This rule affects how much liquid funds you must have when you sign.
The obligation applies even if you share ownership. Whether you hold the flat as joint tenants or tenants‑in‑common, the charge stands. That makes early document checks essential.
Prepare these items before booking:
- Proof of past subsidy or grant on your first flat.
- Estimated sale proceeds and available cash for immediate payment.
- Developer booking paperwork and HDB cashier’s order instructions (if applicable).
Plan bank financing for the balance of the purchase, not for this specific charge. Clear planning at booking keeps your purchase on track and avoids surprises at key milestones.
Resale Levy Amounts: Fixed Sums vs Percentage-Graded
The date you sold your original HDB flat shapes how much you must set aside at your next purchase.
Fixed sums apply when your first subsidised flat was sold on or after 3 March 2006. Typical amounts are set by flat type:
| Flat type | Fixed amount (SGD) | Notes |
|---|---|---|
| 2-room | $15,000 | Applies to eligible studio and 2-room flats |
| 3-room | $30,000 | Common for small family up-sizes |
| 4-room | $40,000 | Mid-sized flats |
| 5-room | $45,000 | Larger family units |
| Executive / EC-related | $50,000 / $55,000 | $55,000 cited for EC pathways where relevant |
Percentage-graded framework
If your first subsidised flat was sold between 19 May 1997 and 2 March 2006, a percentage-graded amount applies. The charge is calculated from the resale price or 90% of market valuation, whichever is higher.
Minimums, interest and special cases
Older cases have minimum payable amounts that mirror the fixed sums above. If you defer payment until you buy another HDB flat, interest accrues at 5% per year. Plan cashflow to avoid surprises.
Singles Grant and right-sizing
If you used the Singles Grant and later form a family, you may pay half the standard amount when you next purchase a subsidised unit.
- Practical tip: map your sale date to the correct framework, then estimate the amount so you can align market timing with payment exposure.
EC-Specific Scenarios: Booking, TOP, and Payment Mechanics
When you book a new EC unit, the charge that may apply is locked in at that moment. That figure gives you certainty about how much you must prepare before TOP and key collection.
Levy fixed at booking
At booking, HDB records the resale levy amount you must pay if your earlier flat received a subsidy. This sum is fixed for your case and will not change with later market moves.
If you dispose before TOP
If you sell your first subsidised flat before possession, the developer will collect a cashier’s order payable to HDB. The developer forwards this payment so you can collect keys without delay.
If you dispose after TOP
If you sell after taking possession, the resale levy is deducted from your sale proceeds. Any shortfall must be topped up in cash at completion. Personal cheques are not accepted.
“Plan timing carefully: lock-in at booking, then align sale date to avoid cash surprises at TOP.”
| Scenario | Timing | Who collects | Accepted funds |
|---|---|---|---|
| Disposed before TOP | Prior to key collection | Developer collects cashier’s order | Cash only (no CPF, no mortgage) |
| Disposed after TOP | After possession, on sale | Deducted from sale proceeds | Proceeds plus cash top-up if needed |
| No disposal (buy private property) | Not applicable | No payment required | — |
Key reminders: you cannot use CPF or an HDB mortgage to pay this charge. Discuss timings with your developer and agent to avoid last-minute cashflow stress.
Timing, Interest, and Special Cases You Should Know
When you delay settlement, interest can meaningfully raise the total amount due. You may choose to defer the resale levy until you buy another HDB flat. But doing so starts interest at 5% per annum on the outstanding amount.
Deferring payment and the 5% rule
If you defer payment to your next HDB purchase, plan for the original amount to grow. The interest compounds each year and increases the final payment you must make from sale proceeds or cash.
Senior right-sizing concession
Seniors aged 55 and above who sold a first subsidised flat before 3 March 2006 and are downsizing to a 3-room or smaller flat get interest waived. The charge still meets minimum amounts tied to the fixed schedule, but no interest accrues in this case.
| Scenario | Interest | Timing impact | Funds used |
|---|---|---|---|
| Defer to next HDB purchase | 5% p.a. | Amount grows over years | Sale proceeds / cash |
| Senior right-sizing (pre-2006 sale) | Waived | Minimum amounts apply | Sale proceeds / cash |
| Buy private property | Not applicable | No payment required | — |
“Map timing choices to avoid surprises: paying early can reduce interest and ease cash flow.”
- Compare scenarios against market timing and your cash position.
- Simulate payments over years to see the true amount due.
Grants, Proceeds, and Cashflow Planning for Buyers
When you plan a second purchase, past grants shape your cash reality. A housing grant or CPF support on your first flat usually classifies that unit as subsidised. That status affects whether you need pay a resale levy on a later subsidised purchase.
How CPF Housing Grants affect whether you need to pay
If you received a CPF housing grant, your first flat is treated as subsidised. That record is the trigger when you next buy another subsidised flat or an EC. Confirm grant documents early so you know if you must pay resale levy at booking.
Using sale proceeds and cash; bank loan vs HDB loan in EC cases
You must use sale proceeds and/or cash to settle the charge—CPF and HDB mortgage funds are not allowed. For EC purchases, you will take a bank loan, not an HDB loan.
- Budget for a minimum 5% cash downpayment on an EC; bank rules and MSR can limit loan size.
- Layer price estimates with stamp duties, legal fees, monthly maintenance, and the resale levy to stress-test affordability.
- Map proceeds inflows and payment outflows across sale completion, booking, and TOP to avoid shortfalls.
“Plan cash and timing together: knowing grant history keeps your purchase on track.”
Worked Examples: Typical Levy Paths for Second-Timers in Singapore
Visualize three common cases so you can see how policy, sale dates and market price affect what you must pay when moving again.
From an HDB subsidised flat to a new project: fixed payment and flow
Case: you sold a first subsidised flat on or after 3 March 2006 and now book a new development. The fixed amount applies (for example, $40,000 for a 4-room or $55,000 for pathways tied to condominiums).
Payment flow: the amount is fixed at booking. You must pay from sale proceeds and cash when collecting keys. Plan cash ahead to avoid delays.
DBSS to a second HDB flat: percentage-graded vs fixed outcomes
Case: your first flat was sold between 19 May 1997 and 2 March 2006. The charge is percentage-graded and uses the resale price or 90% of valuation, whichever is higher.
This can push the final amount higher than a fixed sum. Test two price scenarios in the current market to see sensitivity and how years between sale and purchase affect totals.
Singles Grant to family nucleus: half-payment scenario
Case: you used the Singles Grant previously and later form a family to buy a second subsidised flat. You pay half the standard amount.
Tip: align sale timing, expected proceeds, and booking dates. That sequencing often determines whether you can settle the charge at booking or must top up on completion.
“Run the numbers for each case: timing, price assumptions and proceeds sequencing decide your final cash need.”
- Compare fixed vs percentage paths for your specific sale date.
- Model market price swings to test worst and best case amounts.
- Confirm grant history early so you know whether you will pay resale levy and how much to prepare.
Common Mistakes to Avoid and Practical Tips
Small timing errors can turn a straightforward purchase into a stressful cash scramble at handover.
Misunderstanding “no levy” cases
Know when you do not need pay: buying an HDB resale flat or a private property is usually levy-free.
That path avoids the additional charge and keeps your sale proceeds simpler to manage.
Overlooking cashier’s order at EC key collection
If you sold your first subsidised flat before possession, the developer will require a cashier’s order payable to HDB at key collection.
No personal cheques or CPF can be used for that payment. Confirm the exact amount before you top up cash.
Not budgeting for cash when bank limits bite
Bank mortgage limits and MSR can reduce loan size. You must plan for cash components early.
- Validate bank approval and loan quantum well before booking.
- Factor in sale timing so cash from your sale covers the payment at TOP.
- Document ownership correctly — joint or TIC status does not remove the need to pay in levy-bearing cases.
“Plan payments and timing so you avoid last-minute shortfalls at handover.”
Conclusion
When you plan your next purchase, check subsidy history early. That simple step helps you decide whether you need pay the resale levy and how much cash to set aside.
You now know when the resale levy applies, when it does not, and that the charge is fixed at booking. Payment must come from sale proceeds or cash, and deferring can add 5% a year.
Factor grant history, market timing and the expected amount into your plan. Confirm whether your flat qualifies, verify the levy status, and align sale and purchase dates so you can proceed with confidence.
FAQ
What is the resale levy and why does it exist?
The resale levy is a charge imposed when you buy a second subsidised flat or a new executive condominium (EC) from a developer after previously enjoying housing subsidies. It ensures fair allocation of public housing subsidies so first-time buyers keep priority. The levy prevents households from reusing subsidies when they already benefited from one.
Which homes count as a “subsidised flat” or EC for levy purposes?
Subsidised flats include HDB BTO units and resale HDB flats that received CPF Housing Grants. It also covers Design, Build and Sell Scheme (DBSS) flats and EC units bought directly from developers. If you previously acquired any of these with subsidies, you could trigger a levy when buying another subsidised home or a new EC.
When do you need to pay the levy?
You must pay when you purchase a second subsidised flat or a new EC from a developer and you had previously received housing subsidies. If you buy an HDB resale flat or a private residential property instead, no levy applies. Ownership form (joint tenancy vs tenancy-in-common) can affect obligations, so check titles carefully.
Are there fixed levy amounts or percentage-graded rates?
Both systems exist. Flats sold on or after March 3, 2006 typically attract fixed levy sums depending on size (2-, 3-, 4-, 5-room, or EC). Flats sold between May 19, 1997 and March 2, 2006 may use percentage-graded charges. Older cases also have minimum payable amounts and possible interest adjustments.
How is the levy handled for EC bookings, TOP and possession?
For ECs the levy is determined at booking. Payment can only come from sale proceeds and/or cash. If you dispose of your first subsidised flat before EC possession, you must provide a cashier’s order to HDB. If you sell after possession, HDB will deduct the levy from sale proceeds; any shortfall must be paid in cash. CPF funds and HDB mortgage financing cannot be used to settle the levy.
Can you defer paying the levy? Is there interest?
You can defer payment until your next HDB purchase in some cases, but HDB typically charges interest—about 5% per annum—on deferred amounts. Seniors aged 55 and above who right-size to a 3-room or smaller pre-2006 case may qualify for interest waivers. Check current HDB policy for exact conditions.
How do CPF Housing Grants affect the need to pay a levy?
If your earlier flat received CPF Housing Grants, that triggers levy liability when you buy a second subsidised unit or new EC. Grants factor into HDB’s assessment of whether subsidies were given, so they directly influence whether the levy applies and how much you owe.
What payment sources are allowed to settle the levy?
HDB allows payment from sale proceeds of your existing flat and from cash. You cannot use CPF savings for the levy, nor can you roll it into an HDB mortgage. For EC purchases, bank loans cover the unit but not the levy component; plan for the cash portion.
How do typical levy scenarios play out in practice?
Common paths include: moving from a subsidised HDB to a new EC, which generally triggers a fixed levy and requires payment at booking or possession; moving from a DBSS flat to another subsidised HDB, which may use percentage-graded calculation; and a Singles Grant recipient who later forms a family—this person may pay half the levy when buying a second subsidised unit. Each path has distinct timing and cashflow implications.
What common mistakes should buyers avoid?
Don’t assume “no levy” without verifying the type of purchase—HDB resale and private property purchases are exempt, but new ECs and second subsidised flats are not. Don’t overlook the cashier’s order requirement at EC key collection. Finally, budget for cash components; mortgage and CPF limits can leave you short if you rely on loans alone.
