Contra Payment Facility for New Flats

When you buy a new HDB flat and sell your current flat, the Contra Facility can help you to:
•    Reduce the cash outlay needed for your new HDB flat
•    Reduce the mortgage loan amount needed and the subsequent monthly repayments
•    Collect the keys to your new flat and renovate it while selling your existing flat

The Contra Payment Facility grants you an additional loan on top of your housing loan, after all your available CPF balance is used for the flat purchase. It makes up the shortfall in funds, if you are waiting for the proceeds from the sale of your existing flat to cover the purchase of your new flat.

You will have to redeem this additional loan with the net sale proceeds of your current flat. Interest will be charged for this additional loan based on the interest rate charged for your HDB housing loan.

Eligibility conditions

To qualify for the Contra Facility, you must have: 

  • Booked a new flat and received an invitation to collect the keys
  • Submitted an application to sell your current flat

You must be:

  • Eligible for a housing loan from HDB, and are using it for the new flat purchase
  • Able to cover the full purchase price of the new flat using the following funds:
    • CPF Ordinary Account balance
    • Cash and CPF proceeds from the sale of your current flat
    • Maximum loan from HDB that you are eligible for following credit assessment
  • If the funds mentioned above are insufficient, you must be able to top up the shortfall within the time period HDB provides, before the request for the Contra Facility can be approved

Application procedure

If you wish to apply for Contra Payment Facility, please submit the request when submitting the resale application for your existing flat.

Important points to note before applying

To help you in your planning, please take note of these conditions for the Contra Facility:

  • The proceeds from the sale of your current flat cannot be used to pay for the downpayment of the new flat
  • You will be invited to collect the keys to the new flat on or after the date of approval of your resale application
  • You can choose to use either a CPF contra arrangement, or a CPF and cash contra arrangement