Answer
HDB Contra Facility — Use Sale Proceeds for New Flat
Selling one HDB to buy another? The Contra Facility lets you skip the wait for CPF refund processing and use your sale proceeds directly.
Answer: The HDB Contra Facility lets you use sale proceeds from your existing HDB directly towards your next HDB resale flat — no need to wait for CPF to process the refund first. Both transactions close simultaneously.
How the Contra Facility Works
You sell your existing HDB flat — exercise OTP with buyer, appoint HDB solicitor.
You buy a new HDB resale flat — exercise OTP with seller, use the same HDB solicitor.
Proceeds are linked — the solicitor directs your sale proceeds (cash + CPF refund) towards the new purchase. No waiting for CPF to process and release funds.
Both complete together — sale and purchase are coordinated to close on the same day or as close as possible.
Without vs With Contra Facility
| Step | Without Contra | With Contra |
|---|---|---|
| Sell existing HDB | Complete sale, receive proceeds | Same |
| CPF refund | Wait for CPF to process refund (~2–4 weeks) | Proceeds flow directly to new purchase |
| Buy new HDB | Use CPF OA (after refund) + cash | Same-day settlement |
| Gap housing needed? | Possibly — if there's a gap between sale and purchase | Minimal — both transactions linked |
Requirements
Both must be HDB resale — the Contra Facility only works for HDB resale to HDB resale. Not BTO, not EC, not private.
Same HDB-appointed solicitor — both your sale and purchase must be handled by the same solicitor so funds can be linked.
Timing must align — both transactions need to reach completion around the same time. Your solicitor coordinates this.
Existing flat must have passed MOP — you can only sell your flat after the 5-year Minimum Occupation Period.
Who Benefits Most?
Right-sizers — selling a larger HDB to buy a smaller one. Common for empty nesters. The Contra Facility means you don't need to find temporary housing.
HDB-to-HDB upgraders — moving from a 3-room to a 5-room, or relocating to a different town. Same benefits — no gap period.
Cash-tight buyers — if most of your funds are locked in the existing flat, the Contra Facility lets you use those proceeds directly without needing a separate cash buffer.
Planning an HDB-to-HDB move?
Check your numbers — what your current flat is worth after CPF refund, and what you can afford next.
FAQ
What is the HDB Contra Facility?
The HDB Contra Facility lets you use the sale proceeds of your current HDB flat directly towards the purchase of a new HDB resale flat. Instead of the money going back to your CPF first and then being reused, the proceeds flow directly from your sale to your purchase — saving time and paperwork.
Can I use the Contra Facility for a BTO purchase?
No. The Contra Facility is only for HDB resale-to-resale transactions. It does not apply to BTO purchases, EC purchases, or private property purchases.
Do both transactions need the same solicitor?
Yes. Both the sale of your existing flat and the purchase of your new flat must be handled by the same HDB-appointed solicitor. This is how the funds are linked and transferred directly.
What happens to my CPF refund with the Contra Facility?
The CPF refund (principal + accrued interest) from the sale of your existing flat is directed towards your new flat purchase. Any CPF portion used for the old flat gets refunded to your CPF OA, and if you're using CPF for the new flat, it flows through seamlessly.
How long does the Contra Facility process take?
When using the Contra Facility, both sale and purchase complete on the same day (or close together). The typical timeline from OTP to completion is 8–10 weeks for each transaction, but since they're linked, you coordinate both to complete simultaneously.
Related
- Sell HDB Buy Condo Timeline — ~9 months for the full process
- How Long to Sell HDB — 3–6 months total
- HDB MOP Check — when you can sell
- HDB Resale Levy — $15K–$55K if buying 2nd subsidised
- Bridging Loan Singapore — alternative if buying before selling
Last updated Feb 2026. Contra Facility details per HDB. This is informational, not financial advice.