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Enhanced Contra Facility

With the Enhanced Contra Facility (ECF), buyers can sell their existing HDB flat and at the same time, purchase another resale HDB flat using the sale proceeds and refunded CPF monies. The refunded CPF monies cannot be used for the payment of stamp duty and conveyancing fees, though. The ECF is jointly implemented by the CPF Board and us.

The ECF helps the buyers to:

  • Reduce the cash outlay needed for an HDB resale flat
  • Reduce the mortgage loan amount needed and the subsequent monthly repayments

Application for ECF

If the resale application has not been submitted, you or the buyer can submit the ECF application online. Otherwise, application is to be done via a hardcopy form.

Before submission of resale application

If you or the buyer have not submitted the application for the sale of the existing HDB flat, please indicate in the Resale Application form that the buyer is opting for ECF. The resale application and ECF opt-in can be made via either of these methods:

After submission of resale application

If you or the buyer have already submitted the application for the sale of the existing HDB flat, please download our 'Application for Enhanced Contra Facility' form, fill it up, and submit it to us by fax, post, or in person at our Resale Office. The contact details can be found in the form.

ECF terms and conditions

Please take note of the terms and conditions for ECF. These include important information about application conditions, usage of cash proceeds and CPF funds, approval conditions, and cancellation of the ECF. These terms and conditions are in addition to HDB's Terms and Conditions of Resale/ Purchase of an HDB resale flat.

Application conditions and procedures

  • One may apply for the ECF if selling an existing flat (Flat A) and buying an HDB resale flat (Flat B). The ECF can be used to finance the purchase of Flat B, including the insurance premiums for the CPF Home Protection Scheme. However, the buyer (of Flat A) and the seller (of Flat B) must not have applied for similar contra facilities for their flats
  • The seller of Flat A must not be an undischarged bankrupt or have any bankruptcy proceedings commenced against them
  • HDB may not approve the ECF application if any of the following applies:
    • There is a mortgage in favour of a financial institution
    • There is a CPF mortgage/ charge on Flat A and/ or Flat B
    • Private solicitors have to be engaged
  • The ECF is not available for the following types of resale applications:
    • Conversion Scheme
    • Sale of part-share of an existing flat
    • Contra party buys another resale flat using a housing loan from a bank
  • The resale of Flat A must be completed before or on the same day as the completion of the resale of Flat B

Use of CPF monies or cash from the sale of Flat A

  • One can only use the cash proceeds from the sale of Flat A (the existing flat) to pay part of or the full amount of the resale price of Flat B (the flat being bought) after having used:
    • All of the existing balance in the CPF Ordinary Account
    • All of the CPF monies refunded to the CPF Ordinary Account from the sale of Flat A that are available for use under the ECF
  • The contra amount of CPF monies to be used will be calculated up to the date of the HDB First Appointment
  • ‘Cash proceeds’ refers to the net amount payable to the owner of Flat A after deducting the following from the sale price:
    • Deposit paid
    • Outstanding mortgage loan to HDB
    • Resale/ upgrading levy
    • All CPF refunds plus interest
    • Other sums due and payable to HDB
  • Note that where CPF monies are used in the purchase of Flat B, the withdrawal of such CPF monies is subject to CPF Board’s rules and regulations 

Approval conditions

HDB reserves the right to withhold consent, revoke approval, vary, or cancel the ECF at any time if any of these occur:

  • The contra party is made bankrupt or has bankruptcy proceedings commenced against them pending the completion of the 2 resale transactions
  • The contra party passes away before the completion of any of the resale transactions
  • The contra party infringes any of the provisions of the Central Provident Fund Act (Cap 36) and the regulations made thereunder and the terms and conditions imposed by the CPF Board
  • Any of the parties infringes any of the provisions of the Housing & Development Act, prevailing policies, rules, and regulations
  • The resale of Flat A is delayed, aborted, or not completed
  • The monies in the CPF OA are subject to a charging order made pursuant to an Order of Court
  • The proceeds from the sale of Flat A (cash and/ or CPF) cannot be used to finance the purchase of Flat B under the ECF for any reason whatsoever

Cancellation of ECF by HDB

  • If we revoke, vary, or cancel the ECF, or if the resale of Flat A is delayed or aborted for any reason whatsoever:
    • Where the completion date for the resale of Flat B has not been fixed by HDB, the contra party shall pay:
      • All monies to be utilised under the ECF towards partial/ full payment of the resale price for Flat B within 10 days from the date of notification by us that the ECF has been varied or cancelled
      • The balance of the resale price of Flat B on the day of completion
    • Where the completion date for the resale of Flat B has already been fixed, the contra party will be given notice to pay – within 10 days – all monies to complete the purchase
  • We reserve the right to reschedule the completion dates of Flat A and Flat B
  • The CPF Board shall be authorised to make the necessary amendments to the 'CPF Application for Withdrawal Under Public Housing Scheme' form signed by the contra party during the HDB First Appointment