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.
To qualify for the Contra Facility, you must have:
You must be:
If you wish to apply for Contra Payment Facility, please submit the request when submitting the resale application for your existing flat.
To help you in your planning, please take note of these conditions for the Contra Facility:
If you have been invited to select a flat, you may check out the flats available for selection