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What Is Resale Levy? Can You Use CPF to Pay for It?

The 4 room BTO you’ve successfully balloted 5 years ago is nearing its Minimum Occupation Period (MOP) and the price has appreciated you are ready to sell and upgrade to a bigger HDB resale flat or buy one nearer your parents, who will be helping to look after your toddler.

Before you do that, there is something very important to take note of and that is the resale levy.

In today's article, we take a look at what is the resale levy and whether you can use your CPF funds to pay for it.

What is a resale levy?

If you had previously purchased a BTO, Design, Build and Sell Scheme (DBSS) flat or an Executive Condominium (EC) directly from the developer, or received a CPF Housing Grant, find out if you need to pay a resale levy if you were to purchase a second subsidized flat from HDB.

But why is there a need for a resale levy?

According to the HDB, the resale levy is meant to maintain a fair allocation of public housing subsidies between first-timers and second-timers by reducing the subsidy enjoyed for the second HDB flat or EC.

To put it simply, if you bought a subsidized flat, sell it to buy another subsidized flat, and you will need to pay the resale levy.

You do not need to pay a resale levy if you sell the first subsidized flat and buy an HDB resale flat or a private property.

How much is the resale levy?

For married couples and families, you will pay the resale levy in full and if bought the flat under the Singles scheme, you only need to pay half the resale levy amount, even if you subsequently form a family to buy a second subsidized flat.

The amount payable differs for the different flat types and is listed below.

Source: HDB

Waiver of interest for the elderly

If both you and your spouse are above 55 years old and sold your first subsidized flat before 3rd March 2006 and right-size to a new 3-room or smaller flat from November 2015, you will pay only the percentage graded resale levy, with the interest waived.

So, can I use CPF to pay?

You are not allowed to use CPF funds to pay the resale levy.

It must be paid in cash, which can be from the proceeds from the sale of the flat. You are also not allowed to take an HDB housing loan to pay the resale levy.

When do I need to pay?

The resale levy can be deducted from the proceeds upon sale of the first subsidized flat, with any shortfall to be paid in cash.

If you had sold off the first flat and bought a second subsidized flat at a later date, the resale levy will have to be paid in cash upon taking possession of the second subsidized flat.

So, to avoid paying the resale levy, you can buy an HDB resale flat or a private property and the latest available listings can be easily found at, with its 3D interactive map and intelligent search functions.


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