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HDB Contra Facility — How It Works, Eligibility & Cash Savings
Selling one HDB to buy another? The Contra Facility lets your sale proceeds flow directly to your new purchase — reducing the cash you need to bring to the table.
Answer: The HDB Contra Facility lets you use sale proceeds from your existing HDB flat to directly offset the purchase price of a new HDB resale flat. Both transactions complete simultaneously through the same solicitor. CPF refunds flow automatically to the new purchase. It's free (no interest, no fees) and eliminates the need for a bridging loan or large cash outlay. Only available for HDB resale-to-resale transactions.
How the Contra Facility Works
Engage one solicitor — appoint the same HDB solicitor for both your sale and purchase. This is the critical requirement.
Coordinate completion dates — both transactions complete on the same day (or within days). The solicitor aligns the timelines.
Proceeds flow directly — sale proceeds (cash + CPF refund) from your old flat are applied directly to the purchase of the new flat.
Pay only the difference — you only need cash or CPF for the gap between sale proceeds and purchase price (plus stamp duty and fees).
Example: Selling $550,000 HDB, Buying $650,000 HDB
| Item | Amount |
|---|---|
| Sale price (existing flat) | $550,000 |
| Less: Outstanding HDB loan | ($180,000) |
| Less: CPF refund (principal + accrued interest) | ($220,000) |
| Less: Agent commission (2%) | ($11,000) |
| Net cash proceeds | $139,000 |
| New Flat Purchase | Amount |
|---|---|
| Purchase price | $650,000 |
| Less: CPF contra (from sale refund) | ($220,000) |
| Less: Cash contra (from sale proceeds) | ($139,000) |
| Less: New HDB loan (80% LTV on gap) | ($232,800) |
| Additional cash needed | $58,200 |
Plus BSD of ~$14,400 on the new flat. Without the Contra Facility, you'd need the full down payment upfront while waiting for sale proceeds.
Eligibility Requirements
| Requirement | Details |
|---|---|
| Existing property | Must be an HDB flat (any type) |
| New property | Must be an HDB resale flat |
| Solicitor | Same solicitor for both sale and purchase |
| Completion | Both transactions complete simultaneously |
| MOP | Must have fulfilled MOP on existing flat |
| Not available for | BTO, EC, private property purchases |
With Contra vs Without Contra
| With Contra Facility | Without Contra (Sell Then Buy) | |
|---|---|---|
| Cash needed upfront | Only the gap + stamp duty | Full down payment + stamp duty |
| CPF refund processing | Automatic, same-day | 2–4 weeks after sale completion |
| Temporary housing | Not needed (move directly) | May need rental ($2,000–$4,000/mo) |
| Interest cost | $0 | $0 (but bridging loan is 5–6% p.a.) |
| Stress level | One coordinated move | Two moves, timing pressure |
Key Tips
Coordinate early
Start the purchase process while your sale is being processed. The solicitor needs time to align both completion dates. Ideally, exercise the OTP on your new flat within 2–3 weeks of the buyer exercising the OTP on your existing flat.
Budget for the gap
Even with contra, you'll likely need some additional cash or CPF for the price difference, stamp duty ($9,600–$18,600 on a $500,000–$800,000 flat), and legal fees (~$2,000–$2,500).
HFE letter first
Get your HDB Flat Eligibility (HFE) letter before starting the process. This confirms your eligibility, loan amount, and grant entitlement for the new flat — essential for planning the contra amounts.
Planning an HDB-to-HDB move?
Calculate your sale proceeds and see how much cash you'll need for the upgrade.
FAQ
What is the HDB Contra Facility?
The HDB Contra Facility lets you use the net sale proceeds from your existing HDB flat to directly offset the purchase price of a new HDB resale flat. Instead of receiving sale proceeds, refunding CPF, and then applying CPF again for the new flat, the money flows directly from your sale to your purchase through the same solicitor. This reduces the cash you need upfront and eliminates timing gaps.
Who is eligible for the HDB Contra Facility?
You must be selling one HDB resale flat and buying another HDB resale flat. Both transactions must be handled by the same HDB-appointed solicitor. The sale and purchase completion dates must be coordinated (ideally same day). The facility is not available for BTO purchases, EC purchases, or private property purchases.
How does CPF work with the Contra Facility?
When you sell your existing flat, CPF principal plus accrued interest must be refunded to your CPF OA. With the Contra Facility, this refund happens automatically and the CPF funds are immediately redirected towards your new flat purchase. You don't need to wait for CPF Board to process the refund separately — the solicitor handles the flow.
Does the Contra Facility work with bank loans?
Yes. You can use the Contra Facility whether you have an HDB loan or bank loan on both the existing and new flat. The key requirement is that both transactions go through the same solicitor. However, if you're switching from HDB loan to bank loan (or vice versa), coordinate early as different lenders have different processing timelines.
Can I use the Contra Facility if I have negative sale proceeds?
If your sale proceeds are insufficient to cover the CPF refund (e.g., you owe more in CPF principal + accrued interest than the sale price covers), you may not have anything to contra. In this case, you would need to top up the shortfall from cash before CPF can be used for the new flat.
How is the Contra Facility different from a bridging loan?
The Contra Facility is free — it simply redirects your sale proceeds to your purchase. A bridging loan is a separate bank loan at 5-6% interest that covers the gap when you buy before selling. The Contra Facility is only for HDB-to-HDB resale transactions; bridging loans are for private property. If you're doing HDB-to-HDB, always use the Contra Facility instead of a bridging loan.
Related
- HDB Contra Facility (Quick) — overview
- HDB Sale Proceeds Calculator — estimate your net cash
- Bridging Loan Singapore — 5–6% interest alternative
- HDB Resale Process (Buyer) — 8–12 weeks timeline
- How Much CPF for HDB? — CPF usage limits
Last updated Feb 2026. The Contra Facility is subject to HDB's terms and solicitor coordination. Amounts are illustrative. This is informational, not financial advice.