All about HDB Enhanced Contra Facility (ECF)

Enhanced Contra Facility

With the Enhanced Contra Facility (ECF), you can sell your existing HDB flat and at the same time, buy another resale HDB flat using the sale proceeds and refunded CPF monies. However, the refunded CPF monies cannot be used for the payment of stamp duty and conveyancing fees. The ECF is jointly implemented by the CPF Board and HDB.
With the ECF, you can:
  • Reduce the cash outlay needed for your resale HDB flat
  • Reduce the mortgage loan amount needed and the subsequent monthly repayments

Click on the FAQ below to find out more

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:

Please note the terms and conditions for the ECF which 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.

You may apply for the ECF if you are selling your 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, your buyer (of Flat A) and the seller (of Flat B) must not have applied for similar contra facilities for their flats

  • If all the sellers of Flat A are Singapore Permanent Residents (SPRs), they must not be an undischarged bankrupt or have any bankruptcy proceedings against any of them. HDB may not approve the ECF application if any of the following apply:
    • 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

You can only use the cash proceeds from the sale of Flat A (your existing flat) to pay part of or the full amount of the resale price of Flat B (the flat you are buying) after you have used:

    • All of the existing balance in your CPF Ordinary Account
    • All of the CPF monies refunded to your CPF Ordinary Account from the sale of Flat A that are available for use under the ECF (Note: Each buyer can retain up to $20,000 in their CPF Ordinary Account)
  • The amount of CPF contra to be used for the purchase of Flat B will be calculated up to the date of HDB’s acceptance of the resale application, or as such other date which the HDB or CPF Board may decide.
  • ‘Cash proceeds’ refers to the net amount payable to you 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: 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.

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

  • Any of the SPR sellers of Flat A is made a bankrupt or has bankruptcy proceedings commenced against him pending the completion of the two 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 Ordinary Account 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

If HDB revokes, varies, or cancels the ECF, or if the resale of Flat A is delayed or aborted for any reason whatsoever:

  • The Contra Party shall pay the balance purchase price of Flat B on the day of completion
  • HDB reserves 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