HDBPRO

Enhanced Contra Facility(ECF)

The Enhanced Contra Facility (ECF) enables you to sell your existing HDB flat and at the same time buy another resale HDB flat using the sale proceeds and the refunded CPF monies. The ECF is jointly implemented by the Central Provident Fund (CPF) Board and the Housing & Development Board (HDB).

With the ECF, the cash outlay and the mortgage loan required will be reduced. Your monthly loan repayment will also be reduced. 

However, the CPF refund cannot be used for the payment of stamp duty and conveyancing fees.
 

Please read the Terms and Conditions of the Enhanced Contra Facility.

 

Applying for the ECF

 

You can submit your request for the ECF in one of the following ways:If you have not yet submitted your resale application (selling of your HDB flat), indicate clearly in your Resale Application form that you would like to opt for ECF option. Be it:

• • Submitting via eResale system:

  • Submitting via the Estate Agent Toolkit (if you engage a salesperson from an estate agent which sign up for the Estate Agent Toolkit)

If you have already submitted your resale application (selling of your HDB flat):

• • Download the Application for Enhanced Contra Facility form and submit it by fax, post or in person at the Resale Office.

 

Terms and Conditions for Enhanced Contra Facility (ECF)

 

 

1. Application Conditions and Procedures

 

1.1. An owner who is selling his existing HDB flat ("Flat A") and buying another HDB resale flat ("Flat B"). "The contra party" may apply for the Enhanced Contra Facility to finance the purchase of Flat B, including the insurance premiums payable under the CPF Home Protection Scheme provided his buyer (Flat A) and his seller (Flat B) have not applied for such facility for their respective flats.
 

1.2. The seller of Flat A must not be an undischarged bankrupt or have any bankruptcy proceedings commenced against him.
 

1.3. Where there is a mortgage in favour of a financial institution and/or CPF Mortgage/charge on Flat A and/or Flat B or where private solicitors have to be engaged, HDB reserves the right not to approve the application for the Enhanced Contra Facility.
 

1.4. The Enhanced Contra Facility is not available in resale applications under the Conversion Scheme, the sale of part-share of an existing flat, or if the contra party buys another resale flat with bank loan, or any other schemes as may be decided by the HDB.
 

1.5. The two applications for resale of Flat A and Flat B and the application for the Enhanced Contra Facility must be submitted together. However, approval for the resale of Flat A and Flat B does not constitute approval of the application for the Enhanced Contra Facility.
 

1.6. The resale of Flat A must be completed before the completion of the resale of Flat B, which can be on the same day.
 

2. Use of CPF Monies or Cash from Sale of Flat A

2.1. The contra party may use the cash proceeds (if any) from the sale of Flat A to pay part of or the full amount of the resale price for Flat B, only after he has used:

• • all the existing balance in his CPF Ordinary account, and

  • all CPF monies that will be refunded to his CPF Ordinary account from the sale of Flat A and which are available for use in the Enhanced Contra Facility.

The amount of CPF contra to be utilised will be calculated up to the date of the first appointment or at such other date which the HDB or CPF Board may decide.

“Cash proceeds” refers to the net amount payable to the contra party after deducting the deposit paid, outstanding mortgage loan to HDB, resale/upgrading levy, all CPF refund plus interest or such other sums due and payable to HDB from the sale price.
 

2.2. Where CPF monies are used in the purchase of Flat B, the withdrawal of such CPF monies is subject to the provisions of the Central Provident Fund Act (Cap 36) and the rules and regulations made thereunder and any amendment, modification or re-enactment thereof and also to all covenants, terms and conditions as may be imposed by the CPF Board from time to time.
 

3. Approval Conditions

3.1. HDB reserves the right to withhold consent, revoke approval, vary or cancel the Enhanced Contra Facility at any time if:

• • the contra party is made 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 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 account are subject to a charging order made pursuant to an Order of Court; or

  • the proceeds from the sale of Flat A (cash and/or CPF) cannot be used to finance the purchase of Flat B under the Enhanced Contra Facility for any reason whatsoever.

 

4. Cancellation of Facility

4.1. If HDB revokes, varies or cancels the Enhanced Contra Facility or if the resale of Flat A is delayed or aborted for any reason whatsoever:

• • Where the completion date for the resale of Flat B has not been fixed by HDB, the contra party shall pay:

  • • all monies to be utilised under the Enhanced Contra Facility towards part/full payment of the resale price for Flat B within 10 days from the date of notification by HDB that the Enhanced Contra Facility has been varied or cancelled; and

    • the balance of the resale price of Flat B on the day of completion.

  • Where the completion date for the resale of Flat B has already been fixed, the buyer of Flat B will be given notice to pay within 10 days all monies required to complete the purchase.

  • HDB reserves the right to reschedule the completion date of Flat A and Flat B.

  • 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 at the first appointment.

 

5. Note

5.1. HDB reserves the full discretion and right to:

• • determine the amount that can be used under the Enhanced Contra Facility;

  • add, delete or alter the terms and conditions for the Enhanced Contra Facility at any time;

  • withhold consent to, vary or cancel the Enhanced Contra Facility at any time without giving any reason whatsoever.

5.2. Acceptance by HDB of this application for the Enhanced Contra Facility does not imply that the CPF Board will approve such application.

These terms and conditions are in addition to HDB's Terms and Conditions of Resale/Purchase of an HDB resale flat and are current at the time of printing.