Huh, need to pay money AGAIN?!?!!!?!
Probably your first thought once you find out about this HDB resale levy thing.
The HDB resale levy is a certain fee you have to pay if you’re a second-time receiver of HDB subsidies. We’ll explain in more detail in a jiffy, but the rationale behind this is to essentially “reduce” the subsidy enjoyed for second-timers, so as to fairly allocate public housing subsidies between first-timers and second-timers.
So, all fair and square. Can’t complain.
Ok, here goes:
Do I have to pay the HDB resale levy?
There’s a common misconception that whether you have to pay the resale levy depends on if you’re upgrading or downsizing from your current home, or if you’re taking up a HDB loan or bank loan, or whatnot.
Nope, none of that matters – basically, if you’re getting a subsidy for the second time, you’ll have to pay a resale levy:
- When you dispose of your subsidised flat and then buy a second subsidised flat from HDB
- When you dispose of your subsidised flat and then buy an Executive Condominium (EC) from a developer where the land sale was launched on or after 9 December 2013
“Subsidy” can mean either:
- Getting a Built-To-Order (BTO) or Sales of Balance Flat (SBF) from HDB, or an EC from a developer, even if you don’t take up any CPF housing grants. These flats are already priced much lower than the market rate, hence they’re considered subsidised
- Buying a resale HDB flat with CPF housing grants: The Family/ Singles Grants, Additional CPF Housing Grants (AHG), Special CPF Housing Grants (SHG), or Enhanced CPF Housing Grants (EHG). Only the Proximity Housing Grant (PHG) is NOT considered a subsidy.
If you’re unsure whether the resale levy applies to you, you can do a quick check on HDB’s Resale Portal.
How much is the resale levy?
Your resale levy depends on the size or type of your home:
How to pay the resale levy?
If you sell your flat before taking possession of your next home, you’ll have to pay your resale levy in cash once you take legal ownership of your new HDB flat/ EC.
If you sell your flat after taking possession of your next home, your resale levy will be automatically deducted from the sales proceeds when you sell your current home. Any shortfall has to be paid in cash.
Useful tools to calculate your profits from selling your home
The amount of profit you can make from selling and buying a home depends on more than just the selling and buying price.
To make things simpler, HDB has several tools to help you calculate all the financy stuff, in particular:
- HDB Sales Proceeds Calculator: This provides you with an estimate of the sales proceeds you may get from selling your current HDB flat, depending on your estimated resale price, outstanding loan amount, as well as other miscelleneous payments like your resale levy
- HDB Resale Financial Plan: And if you’re eyeing a resale HDB flat next, this e-service can help you to work out estimated figures for your loan amount from HDB, monthly instalments and more
- HDB Loan Eligibility Check: But if you want to take a loan, gotta first check if the loan wants to take you
- HDB Resale Portal: This is where you check whether you’re liable to pay a resale levy, and everything else to do with your HDB flat
Now that you’re more aware of the potential additional costs involved in buying and selling your new home, you’re much more equipped to start planning for your next property move (pun intended).
Step 2: Happy home-shopping!