Home Sellers · 2026
HDB sales proceeds: where your money goes when you sell
By Winfred Quek · 8 minute read · Last reviewed Aug 2026
Actual amounts depend on your purchase price, holding period, and CPF history. Ask your conveyancing lawyer for a detailed settlement statement.
Facts verified: Aug 2026 · Sources linked below
Key Takeaways
- Sale proceeds are applied in order: outstanding mortgage, CPF refund, seller's stamp duty, agent commission, legal fees, and remaining balance to seller.
- Seller's stamp duty (SSD) is a significant tax if you sell within 3 years: 4 percent within 1 year, 3 percent within 2 years, 2 percent within 3 years, then 0 percent.
- CPF refund includes your original CPF withdrawal plus 2.5 percent per annum accrued interest. If the property is worth less than your CPF outstanding, you must top up from cash.
- Agent commission typically ranges from 1 to 2 percent of the sale price, paid by the seller at settlement.
- The final cheque to the seller arrives 8 to 12 weeks after sale completion, after all deductions and CPF processing.
Many HDB sellers are surprised by how much of their sale proceeds disappear into deductions. A $600,000 flat sounds like a big number until you factor in CPF refunds, stamp duty, commission, and legal fees. Understanding where every dollar goes helps you plan your next purchase and avoid a cash shortfall.
The waterfall: how proceeds are distributed
HDB sales proceeds follow a fixed priority order, called the waterfall. At settlement, your conveyancing lawyer holds the sale price in escrow and distributes it in this sequence:
- Outstanding HDB loan balance: The bank or HDB is paid first from the sale proceeds.
- CPF refund: Your CPF OA is refunded with accrued interest. Both your CPF OA and the buyer's CPF OA are refunded simultaneously.
- Seller's stamp duty (SSD): If you held the property less than 3 years, SSD is deducted.
- Agent commission: Typically 1 to 2 percent is deducted and paid to the agent.
- Legal fees: Conveyancing and legal fees of $1,500 to $2,500 are deducted.
- Net proceeds to seller: Whatever remains is released to your bank account.
The order matters because earlier items take priority. If the sale price is low or the CPF outstanding is high, it is possible to have a small or even zero net proceeds cheque after all deductions. In rare cases where the sale price is below the CPF outstanding (a shortfall), the seller must cover the difference from cash.
Seller's stamp duty (SSD) and holding period
Seller's Stamp Duty is a tax on property sale proceeds. The rate depends on how long you held the property after completion.
- Sell within 1 year of completion: 5 percent SSD
- Sell within 2 years of completion: 3 percent SSD
- Sell within 3 years of completion: 1 percent SSD
- Sell after 4 years of completion: 0 percent SSD
Most HDB owners simply wait beyond 4 years before selling to avoid SSD entirely. Following the 4 year schedule, you avoid all SSD. On a $600,000 flat, 5 percent SSD would be $30,000 within the first year. Most buyers plan to hold longer than 4 years anyway, so SSD is rarely an issue for HDB.
However, if you upgrade from one HDB to another and sell within the 3 year window, SSD becomes a real cost. Factor it into your upgrade decision: is the price difference between two HDB flats worth paying SSD to exit the first one early?
CPF refund and accrued interest
When you used your CPF Ordinary Account (OA) to buy the HDB, the amount withdrawn is tracked. At sale, you are entitled to the full refund of your withdrawal plus accrued interest at 2.5 percent per annum (the statutory CPF OA interest rate).
For example, if you withdrew $80,000 to buy an HDB 8 years ago, your CPF refund at sale is $80,000 plus 8 years of 2.5 percent interest, which is approximately $96,500. The buyer's CPF OA is also refunded for their portion of the purchase.
The key point: CPF refunds are protected by law and come out before anything else (except the loan). Even if the flat has appreciated significantly, the buyer's CPF withdrawal is refunded at sale. This is why HDB buyers can feel secure using CPF for downpayment—it is legally protected.
Worked example: a $600,000 HDB resale
Let me walk you through a realistic scenario. You bought an HDB 4 room for $500,000 six years ago, used $100,000 from CPF, took a $400,000 loan, and now you are selling for $600,000.
- Sale price: $600,000
- Outstanding mortgage balance: $300,000 (approximate after 6 years)
- CPF refund ($100,000 withdrawn + 6 years at 2.5 percent): ~$115,000
- Buyer's CPF refund: variable, say $25,000
- Seller's stamp duty: $0 (held > 3 years)
- Agent commission (1.5%): $9,000
- Legal fees: $2,000
- Net to seller: $600,000 - $300,000 - $115,000 - $25,000 - $9,000 - $2,000 = $149,000
Your net cheque after all deductions is approximately $149,000. That is a profit of about $49,000 from your original $100,000 downpayment (assuming appreciation of $100,000 on the original $500,000 purchase). The loan, CPF, and various fees consume most of the $100,000 price increase.
Winfred's Take
The biggest shock for many HDB sellers is how small their net cheque is after the settlement statement. They think they are getting the full $600,000 sale price and don't account for the loan payoff, CPF refunds, and fees. When I work with upgraders, the first thing I do is model their net proceeds so they know exactly how much cash they will have available for their next downpayment. It keeps expectations realistic and prevents a cash crunch when you are trying to close on your next property.
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Winfred Quek · CEA R073319H · Crestbrick Pte Ltd
Frequently asked questions
What deductions are made from HDB sales proceeds?
HDB sales proceeds are reduced by agent commission (typically 1 to 2 percent), legal fees ($1,500 to $2,500), seller's stamp duty (SSD), and CPF refunds to both the seller's and buyer's CPF accounts. The net amount after all deductions goes to the seller's bank account.
What is seller's stamp duty and how much is it?
Seller's Stamp Duty (SSD) is a tax on property sale proceeds. SSD rates depend on how long you held the property. Sell within 1 year: 5 percent. Sell within 2 years: 3 percent. Sell within 3 years: 1 percent. Sell after 4 years: 0 percent. Most HDB owners avoid SSD by holding beyond 4 years.
How much CPF is refunded when you sell an HDB?
CPF refunds depend on the property's valuation and your CPF withdrawal history. Your CPF OA is refunded with accrued interest at 2.5 percent per annum. If the property has appreciated significantly, your CPF refund is a larger portion of the proceeds. If there is any shortfall, you must pay CPF from cash or your OA.
Can you access your HDB sales proceeds immediately?
No. HDB sales proceeds are held in escrow by your conveyancing lawyer until all conditions are satisfied. Typically this takes 8 to 12 weeks after your sale completes. CPF refunds are processed separately by CPF Board, sometimes taking an additional 4 to 6 weeks.
Is there an ABSD or additional tax on HDB sales?
No. HDB sales are not subject to ABSD. You pay only seller's stamp duty (if held less than 3 years), agent commission, and legal fees. This is one of the key advantages of HDB versus private property.
Sources & References
Winfred Quek is an Associate Marketing Consultant at Crestbrick Pte Ltd (CEA Licence No. L31010886H), CEA Registration No. R073319H. The information on this page is general in nature and does not constitute financial, legal, or investment advice. As at 27 Aug 2026. Always conduct independent due diligence and consult your conveyancing lawyer for an actual settlement statement before selling.
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