HDB Resale Levy Guide 2023 for Singapore
If you are planning to buy or sell an HDB flat in Singapore, it is important to understand the HDB Resale Levy.
Introduced in March 2006, the resale levy aims to ensure a fair and equitable distribution of public housing subsidies, especially for those who have already enjoyed subsidy on their first HDB flat.
In this article, we will cover what the HDB Resale Levy is, who needs to pay it, and how much it amounts to.
What is the HDB Resale Levy?
The HDB Resale Levy is a payment that applies when you buy a second subsidized HDB flat from the open market, after you have sold your first subsidized flat.
It is a way to help maintain the affordability of public housing in Singapore.
When you sell your first flat, you will have to pay the resale levy based on the remaining value of the subsidy that you received when you purchased your first flat.
The payment of the resale levy is done when you book your second flat, and it is separate from other costs involved in the purchase, such as stamp duty and legal fees.
Who needs to pay the HDB Resale Levy?
If you are an existing HDB flat owner and you decide to sell your current HDB flat to purchase another subsidized HDB flat, you will need to pay the HDB Resale Levy.
There are specific eligibility conditions for remission of the levy, such as if you are buying a flat under the CPF Housing Scheme for the elderly or persons with disabilities.
It is important to note that if you sell your HDB flat and subsequently purchase a private property or executive condominium, you will not be eligible for remission of the resale levy.
The payable amount will depend on the type of flat you purchased, the number of times you have enjoyed housing subsidies, your income, and whether you have received a remission certificate.
How much is the HDB Resale Levy?
The amount of the HDB Resale Levy will depend on various factors.
It is calculated based on a percentage of the resale price of the second subsidized flat.
The rates of the resale levy range from 2.
5% to 40% of the resale price, depending on the flat type and the number of times you have enjoyed housing subsidies.
To find out the exact amount of the resale levy, you can use the HDB Resale Levy Calculator available on the HDB website.
The resale levy amount will be deducted from the cash proceeds you receive from the sale of your first flat.
If the resale levy exceeds the cash proceeds, you will need to top up the remaining amount in cash.
It is worth noting that the resale levy is different from the CPF Housing Grants, which are subsidies provided to eligible first-time homebuyers to help with their property purchase.
The resale levy is a separate payment that is aimed at ensuring fairness in the distribution of public housing subsidies.
It is a mechanism to maintain fairness in the distribution of public housing subsidies.
Understanding the resale levy and its implications is crucial for anyone planning to navigate the HDB resale market.
- Purpose of HDB Resale Levy:
- Introduced in 2006 for fair distribution of housing subsidies.
- Applies when buying a second subsidized HDB flat.
- Maintains affordability of public housing in Singapore.
- Who Pays the Resale Levy:
- Applies to existing HDB flat owners buying another subsidized HDB flat.
- Applies to both Singapore Citizens and Permanent Residents.
- Amount Calculation:
- Depends on factors like flat type, resale price, and subsidy history.
- Ranges from 2.5% to 40% of the resale price.
- Calculated using the HDB Resale Levy Calculator.
- Payment Method:
- Paid when booking the second flat.
- Separate from other costs like stamp duty and legal fees.
- Can be offset using Central Provident Fund (CPF) savings.
- Eligibility Conditions for Remission:
- Conditions for remission include age and specific schemes.
- No remission if buying private property or executive condominium.
- Different from CPF Housing Grants:
- Resale levy is distinct from housing grants for first-time buyers.
- Ensures fair distribution of public housing subsidies.
- Importance of Understanding Resale Levy:
- Crucial for anyone navigating the HDB resale market.
- Ensures fairness in the distribution of public housing subsidies.
- Important consideration for financial planning.
- Use of HDB Resale Levy Calculator:
- Essential tool for calculating the amount to be paid.
- Helps in financial planning and informed decision-making.
- Consideration of Factors:
- Resale levy amount affected by factors like property type, income, and subsidy history.
- Understanding these factors aids accurate levy calculation.
- Role of the Resale Levy in Property Purchase:
- Integral part of the process for those selling and buying subsidized HDB flats.
- Understanding and planning for the levy ensures a smooth property purchase journey.
HDB Resale Levy Calculator | Resale Levy Amount
If you are planning to purchase an HDB flat and have previously owned a subsidized HDB flat, you may be subject to paying a resale levy.
The HDB Resale Levy Calculator is a useful tool that helps you determine the amount you need to pay.
In this article, we will discuss how to use the calculator, the factors that affect the levy amount, and provide an example to illustrate the calculation process.
How to use the HDB Resale Levy Calculator
The HDB Resale Levy Calculator allows flat buyers to quickly and easily calculate the amount they need to pay as a resale levy.
Here’s a step-by-step guide on how to use the calculator:
- Visit the HDB website or use the official HDB Resale Levy Calculator.
- Enter your personal information, including your flat ownership details and your eligibility criteria.
- Input the purchase price of your new flat, which will be used to determine the resale levy amount.
- The calculator will then display the estimated resale levy amount based on your input.
Using the HDB Resale Levy Calculator is essential for financial planning as it helps you understand the additional costs associated with your HDB flat purchase.
By knowing the exact amount of the resale levy, you can make informed decisions about your housing loans and budget accordingly.
What factors affect the HDB Resale Levy?
Several factors can influence the amount of the HDB resale levy.
It is important to consider these factors when calculating the levy amount:
- The resale levy is a fixed amount determined by HDB and is payable when you purchase a second subsidized HDB flat. The amount you owe will depend on the type of flat you previously owned and its market rate at the time of sale.
- The income ceiling and withdrawal limits set by HDB can affect your eligibility for certain housing grants and schemes, which can indirectly influence the resale levy.
- If you are purchasing an Executive Condominium (EC) unit from a property developer, you may be eligible for the CPF Housing Grants. However, the resale levy will still apply when you subsequently sell your EC and purchase a subsidized flat from HDB.
- Other factors to consider include stamp duty fees, which may vary depending on whether you are purchasing a resale flat or a new flat from HDB, and the type of property you are buying, such as private condos or executive condos.
Understanding these factors will help you accurately calculate the resale levy and plan your finances accordingly.
Example of how to calculate the HDB Resale Levy
To better illustrate how to calculate the resale levy, let’s consider an example:
Suppose you previously owned a subsidized HDB flat and are now purchasing a new HDB flat.
The resale levy applies if you received a Housing Grant or purchased a Balance Flat.
Let’s assume the resale levy amount is $50,000.
If you are eligible for the Half-Housing Grant and Top-Up Grant, you are required to pay only half the resale levy amount.
In this example, you will pay $25,000 as the resale levy.
It’s important to note that the resale levy is payable upon key collection for the new flat or transfer of ownership for the resale flat.
By understanding how the resale levy is calculated, you can better plan your finances and make informed decisions regarding your HDB flat purchase.
In conclusion, if you are considering purchasing an HDB flat and have previously owned a subsidized HDB flat, it is crucial to utilize the HDB Resale Levy Calculator to determine the amount you need to pay as a resale levy.
Consider the various factors that affect the levy amount, such as property prices, income ceiling, and withdrawal limits.
By understanding these factors and using the calculator, you can accurately calculate the resale levy and plan your finances effectively.
How to pay the HDB resale levy?
If you are planning to sell your HDB flat and purchase a new one, you may be required to pay a resale levy.
The resale levy is a payment that ensures a fair distribution of public housing subsidies.
In this article, we will guide you through the process of paying the HDB resale levy and provide you with insights on how to manage your finances effectively.
When considering a loan amount for purchasing a resale, subsidized HDB flat, there are several important factors to take into account.
Firstly, you need to consider the need to pay a resale levy.
This levy is applicable if you are an existing flat owner and are planning to buy another HDB flat.
The amount of the resale levy depends on the flat type and whether it is a subsidized or non-subsidized flat.
Additionally, if you choose to sell your existing HDB flat within a certain period of time, you may be subject to a selling restriction.
This means that you may not be able to sell your flat immediately after purchasing a new one.
Another point to consider is the difference between HDB flats and executive condominiums (ECs).
While both types of housing are provided by HDB, ECs come with certain eligibility criteria and are developed and sold by private developers.
Lastly, if you have already sold your HDB flat, but have not yet collected the sales proceeds, it is crucial to let HDB know so they can assess your eligibility to buy a new flat.
In conclusion, purchasing an HDB flat can be a complex process and it is important to be aware of all these factors in order to make an informed decision.
If you are looking to purchase a resale HDB flat, it is essential to understand the financial aspects involved.
One of the crucial factors to consider is the resale levy.
Introduced on 3 March 2006, the resale levy is a financial obligation that buyers must fulfil when they sell their subsidised HDB flat and subsequently purchase another subsidised flat from HDB.
The amount of the resale levy is fixed and varies depending on the type of flat being sold.
However, there are options available to alleviate the burden of this levy.
First, eligible buyers can qualify for the Proximity Housing Grant, which provides additional financial assistance of up to $30,000.
Additionally, HDB mortgage financing can be utilized to pay for the resale levy.
This means that buyers can opt to pay half the levy upfront and finance the remaining amount through their HDB loan.
By understanding these financial aspects and available grants, buyers can make informed decisions when purchasing a 4-room flat in the resale market.
Sell your HDB flat within the Minimum Occupation Period (MOP)
Before you consider buying another HDB flat, it is important to understand the rules regarding the Minimum Occupation Period (MOP).
The MOP is a specified period of time during which you are required to live in your existing HDB flat before you can sell it.
The MOP is typically five years for most HDB flats.
If you choose to sell your flat within the MOP, you will be liable to pay the HDB resale levy.
The amount of the resale levy depends on the type of flat you are selling and the resale price.
It is essential to factor in this cost when planning your finances for the next flat purchase.
Use your CPF to pay the HDB Resale Levy
One way to pay the HDB resale levy is by utilizing your Central Provident Fund (CPF) savings.
The CPF Housing Grants you received when purchasing your first flat can be used to offset the resale levy.
However, if the grants are insufficient to cover the full amount, you will need to pay the remaining balance in cash.
When using your CPF savings, it is important to consider the eligibility criteria.
For example, if you are using the CPF Housing Grant, you must have sufficient CPF savings in your Ordinary Account to pay the resale levy.
Additionally, it is crucial to be aware of the CPF withdrawal limits and the impact on your retirement savings.
Consider buying a resale flat that is eligible for the Reduced Resale Levy
If you are eligible to buy a second subsidised flat, you may qualify for a reduced resale levy.
The Reduced Resale Levy scheme offers lower levy rates for those who meet certain criteria.
For instance, if you are a second-timer citizen and are looking to purchase a flat that is closer to your parents or married child, you may be eligible for a reduced resale levy.
The eligibility criteria for the Reduced Resale Levy scheme include factors such as the proximity of the new flat to your existing flat, the type of flat you are buying, and your citizenship status.
It is advisable to check the HDB website or consult with a property agent to determine your eligibility for reduced resale levy rates.
In conclusion, paying the HDB resale levy is an important consideration when selling your HDB flat and purchasing a new one.
It is essential to plan your finances and understand the rules and eligibility criteria associated with the resale levy.
By selling your flat within the Minimum Occupation Period, using your CPF savings, or exploring options for reduced resale levy rates, you can effectively manage your finances and make informed decisions in your property purchase journey.
Note: The information provided in this article is for general informational purposes only and should not be considered as financial or legal advice.
It is always advisable to consult with relevant authorities or professionals for specific guidance based on your individual circumstances.
Buying a New HDB Flat After Selling Your Current HDB Flat
If you are considering selling your current HDB flat and buying a new one, there are certain steps and guidelines you need to be aware of.
This article will provide you with a comprehensive guide and outline the eligibility criteria, application process, and timeline for buying a new HDB flat after selling your current one.
Eligibility Criteria for Buying a New HDB Flat
Before you can proceed with buying a new HDB flat, it is essential to meet the eligibility criteria set by the Housing and Development Board (HDB).
These criteria include the following factors:
- Buying a New Flat: To be eligible, you must be planning to purchase a new HDB flat and not a resale flat.
- Next Flat Priority: Preference is given to applicants who have previously sold their flat and are looking to buy their next flat. This ensures that those who have fulfilled their minimum occupation period (MOP) have a higher chance of securing a new HDB flat.
- Executive Condominium (EC) Resale Levy: If you have previously bought an EC or received an EC Housing Grant, you will be required to pay a resale levy when you buy a new HDB flat.
- Residential Property Ownership: You and any essential family members must not own or have disposed of any private residential property within 30 months before applying for a new flat.
- CPF Housing Scheme and Housing Subsidies: You must have fulfilled the CPF Housing Scheme requirements and satisfy the eligibility criteria for any housing subsidies you wish to apply for.
- Resale Application and Housing Limits: If you have previously sold a flat, there are certain limits on your resale application and housing options based on your flat type and the time elapsed since the sale.
For a more detailed understanding of the eligibility criteria, it is advisable to visit the HDB website or consult with a housing officer.
How to Apply for a New HDB Flat
Once you meet the eligibility criteria, you can proceed with the application process to buy a new HDB flat. Here are the key steps involved:
- Determine Your Eligibility: Check if you meet the eligibility criteria for buying a new HDB flat after selling your current one.
- Sale and Purchase Agreement: If you have already found a buyer for your current flat, you should sign the sale and purchase agreement with them.
- Visit the HDB Branch: Visit the HDB Branch and inform them that you are currently a flat owner and intend to buy another flat.
- Obtain Loan Approval: If you require financing, apply for a housing loan from financial institutions and obtain loan approvals.
- Submit Application Forms: Complete and submit the necessary application forms for buying a new HDB flat, including the Resale Application Form and the Option to Purchase (OTP) for the new flat.
- Log in to HDB Flat Portal: Log in to the HDB Flat Portal and submit your flat application online.
- Evaluation and Approval: Your eligibility and application will be evaluated by HDB, and if approved, you will receive a letter confirming your eligibility and providing further instructions.
- Pay Deposits and Stamp Duty: Pay the necessary deposits and stamp duty fees for the new flat.
- Complete the Purchase: Complete the purchase process according to the instructions provided by HDB, including signing the lease agreement and paying the balance of the purchase price.
It is important to note that the process and requirements may vary depending on individual circumstances, so it is recommended to consult with the relevant authorities and professionals for personalized guidance.
If you are planning to sell your flat and buy another subsidised flat, it is essential to be aware of the resale levy that will be deducted from the sale of your current flat.
The resale levy is a payment made to the government when you purchase a second subsidised flat.
This levy helps to ensure a fair allocation of public housing resources, hdb flat to buy another, preventing individuals from profiting excessively from subsidised housing schemes.
The levy amount is determined based on various factors, such as the size of your current flat and the type of flat you intend to buy.
If you currently own a 3-room flat and wish to upgrade to a larger flat, you can expect a higher levy.
It is recommended to read the ultimate guide provided by the authorities to fully understand the implications of the resale levy.
By being informed and prepared, you can make informed decisions as you form a family and plan your next housing purchase.
Purchasing a subsidised flat directly from the government is a decision I made ten years ago that has proven to be a wise investment.
In a housing market where prices seem to be spiraling out of control, I am grateful to have secured my property at a subsidised hdb flat to buy.
The government’s initiative to provide these affordable housing options has been a blessing for many buyers who would otherwise struggle to enter the property market.
It was indeed a significant advantage to be one of the first buyers to have access to these subsidised flats.
Over the past decade, I have witnessed the prices of similar flats skyrocket, and the demand for them increase substantially.
This has not only protected my investment but also positioned me favorably compared to those who have yet to secure a subsidised flat.
Buying a subsidised flat first enabled me to establish a foothold in the property market while ensuring stability and security for myself and my family.
Timeline for Buying a New HDB Flat After Selling Your Current HDB Flat
The timeline for buying a new HDB flat after selling your current one can vary depending on several factors.
Here is a general timeline to help you understand the process:
- Sale Proceeds: Once you sell your current HDB flat, you will receive the sale proceeds.
- MOP Completion: The MOP for most HDB flats is five years. After the MOP is completed, you become eligible to buy a new HDB flat.
- Resale Application: If you are planning to buy a resale flat, you will need to submit a resale application, which includes the valuation request and resale completion appointment.
- Market Rate Assessment: A market rate assessment will be conducted to determine the market value of the flat you want to buy.
- CPF Housing Grant: If you are eligible for a CPF Housing Grant, you can apply for it during the flat transaction.
- Stamp Duty: Stamp duty will be payable for the transfer of ownership of the new flat.
- Completion of Purchase: Once all the necessary procedures and payments are completed, you will become the owner of the new HDB flat.
It is advisable to consult with professionals and stay updated with the latest guidelines and timelines provided by HDB to ensure a smooth process.
With proper understanding of the eligibility criteria, application process, and timeline, you can navigate the process of buying a new HDB flat after selling your current one with confidence.
How to Apply for HDB Resale Levy Remission? – Eligible to upgrade
If you are planning to purchase a new Housing and Development Board (HDB) flat after selling your existing subsidized flat, you may be required to pay a resale levy.
However, there are certain conditions and eligibility criteria that may entitle you to a resale levy remission.
Here we will discuss how to apply for HDB resale levy remission, along with the conditions and eligibility requirements.
Conditions and Eligibility for HDB Resale Levy Remission
The HDB resale levy remission is a scheme that aims to provide financial assistance to certain groups of HDB flat owners.
To be eligible for the remission, the following conditions must be met:
- First-timer families: If you are a first-timer family buying a second subsidised flat from HDB, you may be eligible for a resale levy remission. This remission helps to lessen the financial burden on first-timer families who wish to upgrade to a larger flat.
- Public rental flat tenants: If you are currently living in a public rental flat and have been allocated a flat under the Fresh Start Housing Scheme or the Two-Room Flexi Scheme, you may be eligible for a resale levy remission. This remission assists public rental flat tenants in transitioning to a new HDB flat.
- Non-citizens married to Singapore citizens: If you are a non-citizen married to a Singapore citizen and have been allocated an HDB flat under the Non-Citizen Spouse Scheme, you may qualify for a resale levy remission. This remission aims to support non-citizen spouses in their home ownership journey.
To apply for HDB resale levy remission, follow the steps below:
- Check your eligibility: Ensure that you meet the conditions mentioned above to be eligible for the resale levy remission scheme.
- Submit the necessary documents: Prepare the required documents, such as your identification documents (NRIC or passport), marriage certificate, and any supporting documents relevant to your eligibility category (e.g., proof of public rental flat tenancy). These documents will be needed to support your application for the resale levy remission.
- Apply online: Visit the HDB website or the My HDBPage portal to apply for the resale fee remission online. Fill in the necessary details and upload the required documents.
- Pay the levy (if applicable): If you do not qualify for the resale levy remission or are only entitled to a partial remission, you will need to make the payment for the resale levy as determined by HDB.
- Wait for approval: After submitting your application, HDB will review your eligibility and assess whether you qualify for the resale levy remission. You will be notified of the outcome of your application through the online portal or via mail.
It is important to note that meeting the eligibility criteria does not guarantee automatic approval for the resale levy remission.
The final decision lies with HDB, and they will consider each application on a case-by-case basis.
By providing a resale levy remission scheme, HDB aims to support certain groups of flat buyers who may face financial constraints in their home ownership journey.
The scheme helps to ease their financial burden and enables them to afford a new HDB flat after the sale of their subsidized flat.
If you are considering purchasing a new HDB flat after selling your existing subsidized flat, it is advisable to check your eligibility for the resale levy remission and apply accordingly.
Remember to prepare the necessary documents and follow the application process outlined by HDB to increase your chances of approval.
Understanding these aspects is crucial for both buyers and sellers, as it enables them to navigate the resale market effectively.
Through this guide, we have explored different factors that come into play when determining the resale levy, such as the sale price, housing subsidy, rental income, monthly income, and eligibility criteria.
Sellers should take into consideration the levy amount they will need to pay based on the type of flat they are selling and the duration of their Minimum Occupation Period (MOP).
This information can help sellers plan their finances and make informed decisions.
Buyers, on the other hand, should be aware of the eligibility requirements for purchasing a resale flat, including the income ceiling, citizenship or permanent residency status, and ownership of other properties.
Additionally, buyers should consider factors such as the location, size, and condition of the flat they intend to purchase.
It is also worth noting that there are alternative options for buyers, such as purchasing executive condominiums or private properties.
These options may not be subject to the same resale levy will be deducted as HDB flats, but they do come with their own set of considerations, including higher prices and loan eligibility criteria.
Overall, the HDB resale levy guide serves as a valuable resource for both buyers and sellers in navigating the complex world of HDB resale transactions.
It provides clarity on various aspects related to the resale levy amount is fixed and offers essential information to make informed decisions.
By understanding the information provided in the guide and seeking professional advice when needed, buyers, form a family and buy sellers can ensure a smooth and successful resale transaction while maximizing their financial benefits.
When it comes to housing in Singapore, the mortgage market and HDB resale flats are of utmost importance.
Many individuals and families aspire to own their own homes, and the ability to secure a mortgage is crucial in achieving this goal.
The Housing and Development Board (HDB) resale flats offer a wide variety of options, catering to different budgets and preferences.
However, for those looking for a more affordable option, Built-To-Order (BTO) flats are available.
These are brand new flats offered by HDB, and they usually come at a lower price compared to resale flats.
To help Singaporeans with their housing aspirations, HDB provides mortgage financing options.
This allows buyers to obtain loans to finance their flat purchase.
hdb mortgage financing to pay offers competitive interest rates and flexible repayment options.
Additionally, for single citizens looking to buy their own homes, the government has introduced the Single Grant.
This grant provides financial assistance to eligible singles, reducing the financial burden of purchasing a property.
It is essential for individuals to be aware of the various housing options and financing schemes available, to make informed decisions and ensure a smooth home ownership process.
Frequently Asked Questions
What are the most common questions about HDB resale levy?
The following are the 10 most common questions about HDB resale levy:
What is a resale levy?
A resale levy is a payment that certain HDB flat owners are required to make when they sell their subsidised flat, and subsequently buy another subsidised flat or an Executive Condominium (EC).
How much is the resale levy?
The resale levy amount varies depending on the type of flat you’re currently own and wish to sell. You can check the HDB website for the specific resale levy amount applicable to you.
Do I need to pay the resale levy in cash?
The resale levy can be paid in cash or with the proceeds from the sale of your existing HDB flat.
Can I use the resale levy to pay for a private property or condo?
No, the resale levy can only be used to buy another subsidised flat directly from HDB or an Executive Condominium (EC) from a developer.
Can I sell my HDB flat and buy an executive condo (EC) without paying the resale levy?
No, if you sell your HDB flat and subsequently buy an Executive Condominium (EC), you will still need to pay the resale levy.
How is the resale levy calculated?
The resale levy is calculated based on the purchase price of the property you are buying and the type of HDB flat you currently own. You can find the detailed calculation method on the HDB website.
Do I have to pay the resale levy if I currently own an HDB flat with a short lease?
Yes, even if you currently own a short-lease 2-room Flexi flat, you will still be required to pay the resale levy when you purchase a flat and purchase another subsidised HDB flat.
Can I sell my HDB and buy a private property without paying the resale levy?
Yes, if you sell your HDB flat and subsequently purchase a private property or a condo, you will not be required to pay the resale levy.
When is the resale levy owed?
The resale levy is payable upon the signing of the Agreement for Lease or the Sale and Purchase Agreement, whichever comes first.
Can I pay half of the resale levy if I form a family nucleus | First subsidised Flat?
Yes, you pay half the resale levy and half from a family nucleus, you may be eligible to pay only half of the resale levy when you sell your first subsidised flat and purchase another subsidised flat or Executive Condominium.