What Is Your Resale Levy Policy?
Applicants that have previously purchased a brand new flat from HDB or enjoyed a CPF (First Timer) Housing Grant, a resale levy is payable when they purchase another new flat from HDB/ DBSS/ EC directly for HDB. This resale levy is applicable to ensure a fair distribution of housing subsidies between the first and second timer Singaporean family household.
Applicants sold their first subsidised flat and their resale submission application on or before 3 March 2006.
To note: The illustration is for applicants who had sold their 1st subsidised home before 3 March 2006 will come under the previous Resale Levy Structure:
- Confirmed an EC directly from developer or 2nd subsidised home before 3 March 2006 regardless if applicants have submitted or sold the resale selling application of the 1st subsidised home, or
- Choose to defer the resale levy after selling the 1st subsidised home
- Resale selling application to (HDB) before 3 March ’06
A new revision to the resale levy was introduced on 3 March 2006. This resale policy enables the 2nd timer applicants to have a clear and straight forward understanding of the resale levy payable. Applicants who had sold their subsidised 1st home and did not pay for the resale levy could still pay later without coming out with more funds.
The table illustrated below under the Old Resale Levy Scheme is subjected to the resale selling price of the 1st subsidised home or 90% of the market valuation price, whichever is higher transacted price;
When To Pay The Resale Levy
Upon confirming the booking of the 2nd subsidised home, the resale levy is payable disregard to the ownership withhold (e.g tenancy-in-common or joint tenancy) and the percentage of the share in the 1st subsidised home.
Upon confirming your purchase of the 2nd subsidised home, the purchasers can:
- Make the payment of the resale levy at the resale completion date for the 1st subsidised home or
- Defer the resale levy payment only upon purchasing new subsidised HDB home or EC direct from HDB. If the purchaser is under the old resale levy scheme and choose not to pay earlier, an interest of 5% per year is charged.
The Resale Levy may be paid with either of the following mode:
- Directly deducted from sale proceed