Selling one HDB flat and buying another creates an obvious timing problem, the cash from your sale and the cash needed for your purchase rarely land on the same day. A contra is HDB's answer to that gap.
What a contra day actually does
On a contra completion, your HDB sale and your next HDB purchase are timed to complete on the same day. Sale proceeds and any CPF refund flow directly into funding your new purchase, so you avoid needing a bridging loan or a large cash buffer to cover the gap between the two transactions.
Eligibility conditions
The facility is generally available where the purchase uses an HDB housing loan, or no loan at all, and both the sale and the purchase are HDB conveyanced. It is not available for a private property leg, if you are selling an HDB flat to buy a condo, or using a bank loan on the new HDB flat, you cannot contra and need a different funding plan, such as a bridging loan.
Why the HFE letter timing matters
Because the purchase side of a contra still needs a valid HFE letter before an OTP can be granted, and that can take up to about a month to process, the practical sequencing is to apply for your HFE letter early, before you have found either flat, so it is ready when both transactions are being timed to align.
What if you're not eligible
If a contra is not available for your situation, the usual alternative is a bridging loan, a short term facility that covers the downpayment and legal costs on the new purchase before your existing flat's sale proceeds arrive, repaid in full once that sale completes.
Frequently asked questions
Can I use a contra transaction if I'm buying a private condo instead of another HDB flat?
No. The Enhanced Contra Facility applies to HDB to HDB transactions where the purchase is financed with an HDB loan or no loan, with HDB handling the conveyancing on both legs. A move into private property needs a different funding approach, typically a bridging loan.
Does a contra transaction avoid the need for a bridging loan?
Yes, that is its purpose. By aligning the completion dates of your sale and purchase, sale proceeds fund the new purchase directly, removing the timing gap a bridging loan would otherwise cover.
Do I still need an HFE letter if I'm doing a contra?
Yes. The purchase side of a contra transaction still requires a valid HFE letter before a seller can grant you the OTP, exactly as with any other HDB resale purchase.
Selling and buying HDB at the same time?
Winfred checks whether a contra completion is available for your situation and builds the backup funding plan if it isn't, before you commit to either transaction.
Book a free 30 minute callWinfred Quek is an Associate Marketing Consultant at Crestbrick Pte Ltd (CEA Licence No. L31010886H). CEA R073319H. This page is for general information only and does not constitute financial, investment, or legal advice. Rates and rules reflect the position as at 5 Aug 2026; verify current figures with IRAS, HDB, or MAS before making any decision.