Selling your HDB to buy a BTO flat

Check the move is eligible before timing the sale

Confirm your current flat’s MOP, your next-flat eligibility and any second-timer conditions. A resale levy may arise when buying a second subsidised flat, depending on your subsidy history. It is separate from the mortgage and should have its own cash provision. Do not assume choosing a bank loan removes that levy.

What happens with a second HDB housing loan?

HDB’s second-loan conditions require the CPF refund and a required portion of cash proceeds to be used for the next purchase. In the sell-first case, buyers can generally retain the higher of S$25,000 or half the cash proceeds, with the remainder taken into account for the second loan. This concerns a second loan from HDB—not simply buying your second home. Your HDB loan history and transaction sequence matter.

A simple cash-proceeds example

These figures illustrate the general sell-first cash-retention rule. “Cash proceeds” means the cash balance after relevant sale deductions and CPF refund, not the full selling price. This table does not include the CPF refund that must also be dealt with under HDB’s rules.

Examples only. Retention cannot exceed the actual cash proceeds. Confirm HDB’s required contribution for your application before reserving money for renovation or other uses.

Should you use an HDB loan or a bank loan?

Compare the amount of cash you need at each stage and the terms of the actual financing offer. The current HDB rate stated here is for October–December 2026; it is not a promise of an unchanged rate for the whole loan.

When refinancing an existing HDB loan with a bank, you cannot switch that mortgage back to HDB. This is different from checking eligibility for a future purchase.

If you collect keys before the existing flat is sold

HDB’s buy-before-selling second-loan arrangements can involve a temporary commercial interest rate and a later reduction using the CPF refund and 50% of cash proceeds. Do not automatically apply the sell-first retention examples to that arrangement. Obtain HDB’s specific financial plan. Existing owners generally need to dispose of the old flat within six months of collecting the next flat’s keys; confirm the deadline in your approval.

Build one sale-and-purchase cash-flow plan

Map the sale completion, CPF crediting, BTO payments, any levy, renovation and moving dates together. A sale proceeds estimate helps prepare the discussion, but does not reserve or allocate funds. I can help coordinate presentation, the sale strategy and the handover with your next-home timeline.