Frequent Asked Questions (FAQs)

1. What is the HDB Contra Facility?

The HDB Contra Facility allows sellers to use the proceeds from the sale of their current HDB flat and their CPF refunds to directly finance the purchase of a new HDB flat, facilitating a seamless transition between the sale and purchase.

2. Who is eligible for the Contra Facility?

To be eligible, you must be an HDB flat owner selling your current flat and purchasing another HDB flat concurrently. Both transactions must be coordinated to complete around the same time.

3. How does the Contra Facility benefit me?

The Contra Facility reduces the cash outlay required for purchasing the new flat by using the sales proceeds and CPF refunds from your existing flat. This can ease the financial burden and streamline the transaction process.

4. Can I use the Contra Facility if I’m buying a resale HDB flat?

Yes, the Contra Facility can be used for both new and resale HDB flats as long as both the sale and purchase transactions are coordinated to complete around the same time.

5. Are there any additional fees for using the Contra Facility?

There are no additional fees specifically for using the Contra Facility, but you will need to cover the usual costs associated with buying and selling HDB flats, such as legal fees and stamp duties.

6. Can I use the Contra Facility if I’m upgrading to a private property?

No, the Contra Facility is only applicable for transactions involving the sale and purchase of HDB flats.

7. How do I apply for the Contra Facility?

You can apply for the Contra Facility through your appointed HDB officer or via the HDB resale portal when you submit your Intent to Sell and Intent to Buy forms.

8. What happens if the sale of my current flat falls through?

If the sale of your current flat falls through, the Contra Facility cannot be used. You will need to secure alternative financing or wait until you have a confirmed buyer for your existing flat.

9. Can I use CPF housing grants with the Contra Facility?

Yes, eligible buyers can use CPF housing grants along with the Contra Facility, which can further reduce the financial burden of purchasing the new flat.

10. What are the potential risks associated with using the Contra Facility?

One potential risk is the dependency on the simultaneous completion of both the sale and purchase transactions. If one transaction is delayed or fails, it can affect the other, possibly resulting in financial or logistical challenges.