Do HDB Sellers need to pay back HDB Grants when they sell their HDB Flat?

Jun 30, 2024·By Zen

What Happens When You Sell Your HDB Flat?

Selling your HDB flat isn't confusing. It's actually pretty straightforward when you break it down. Here’s a simple guide to help you understand what happens to your CPF (Central Provident Fund) money and housing grants when you sell your flat.

For a start, let's see the HDB Housing grants available for first timer families, singles or couples with 2nd timers in a nutshell before 20 August 2024

Housing Grants for first-timer families buying resale HDB flats

First timer families HDB resale housing grant table — *First timers families refer to couples or families comprising at least two Singapore Citizens or one Singapore Citizen and one Singapore Permanent Resident who have not enjoyed any housing subsidies before, meet the prevailing monthly income ceiling of S4,000 do not own or have any interest in private property in the last 30 months prior to flat application before 20 Aug 2024

New Enhanced CPF Housing Grant amount as of 20th Aug 2024 — New Enhanced CPF Housing Family Grant amount as of 20th Aug 2024

Housing Grants for first- timer singles buying resale HDB flats

First timer singles HDB resale housing grant table before 20th August 2024 — *First timers singles refer to Singapore Citizens who have not enjoyed any housing subsidies before, meet the prevailing monthly income ceiling (S4,000 if purchasing with other family members or other singles, S$7,000 if purchasing alone), and do not own or have any interest in private property in the last 30 months prior to flat application before 20th August 2024

New Enhanced CPF Housing Grant amount for singles or 2nd timers as of 20th August 2024

HDB Housing Grant amounts for first timer families or singles after 20 August 2024

HDB housing grant amounts for first timer family after 20 August 2024

HDB housing grant amounts for first timer singles or couples consisting of 2nd timers after 20 August 2024

Refunding Money to CPF

When you sell your HDB flat, all the money you used from your CPF to buy it, including any housing grants, goes back into your CPF account less any outstanding loan. This also includes the interest you would have earned if you hadn’t used that money. Think of it like returning borrowed money back to your savings account and paying yourself the interest that you would have earned from the sales of the HDB flat.

How Housing Grants Are refunded after the sale of a subsidised HDB flat

1. For Singles: The first $30,000 of the grants you received will go into your CPF Ordinary Account.

2. For Families: The first $60,000 of the grants will go into your CPF Ordinary Account.

3. The Rest of the Grant Money: Any remaining grant money is split between your CPF Special Account (or Retirement Account) and your Medisave Account.

What About Resale Levy

Very often, home owners have the misconception that they need to pay resale levy upon the sales of their HDB. This is only true when the following conditions apply.

1. Selling of subsidised housing flat: By subsidised housing, this means HDB flats that are directly purchased from HDB or Resale HDB flats purchased with housing grants.

2. Purchasing another Built To Order (BTO) or New Executive Condominium (EC): What this means is after the disposal of your first subsidised housing, you purchase another BTO or New EC subsequently.

For more information about the resale levy amount, do refer to our blog on Navigating the HDB Resale Levy: What You Need to Know

Why This Matters

Knowing what happens when you sell your flat allows you to plan better. You’ll know where the money goes and how you can utilise it in the future.

For more details, check out the HDB website.

Selling your HDB flat doesn't have to be confusing. By understanding how your CPF money and grants are handled, you can make smart decisions and plan for your next steps easily.

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