When you’re buying and selling an HDB flat at the same time, the Enhanced Contra Facility (ECF) helps make things smoother—especially when it comes to managing your money.
Let’s break it down simply with this article. Let’s get right to it!
First and foremost… What exactly is ECF and what does it do?
If you’re selling your current HDB flat and buying another resale HDB flat at the same time, ECF lets you use the proceeds from your sale (cash and CPF money) to directly offset the purchase price of your next flat.
Ok simply put, this means:
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You don’t need to fork out a lot of upfront cash.
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Your CPF funds and cash proceeds from the sale are used to pay for your next home.
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It can help reduce or even remove the need for a housing loan.
Why doesn’t everyone do it then?
Well because it’s by HDB, so there’re obviously some criteria to fulfill!
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Buyers and sellers of HDB resale flats only.
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You must be selling your current flat and buying another resale flat at the same time.
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Both flats (the one you’re selling and the one you’re buying) must be under HDB’s resale market (not BTO or private housing).
So if you’re selling to upgrade to an EC or a private property, or buying a new launch (BTO/SBF), you cannot do ECF.
But that’s not all!
More criteria…
To be eligible for ECF:
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Both flats must be resale flats.
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You must be the owner of the selling flat and the buyer of the new flat.
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The sale proceeds must be enough to offset part (or all) of the purchase.
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You must not be taking a loan from a bank. ECF is only available if you take an HDB loan or no loan at all.
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You cannot be under the Sale of Balance Flat (SBF) or BTO scheme.
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Most importantly… HDB only allows 1 Contra Party. This means that if you are planning to do Contra, then the buyer of your existing flat and the seller of the flat that you wish to purchase, cannot be doing Contra.
Ok I’m eligible! How do I apply?
When you submit your resale application to HDB, just indicate that you intend to use the Enhanced Contra Facility. HDB will process both the sale and the purchase together.
Make sure that both your buying and selling agents coordinate the timeline properly! If not done properly, you may even have to rent a place while waiting for your new place 🙁
But remember to take note:
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Timing is key: Both the sale and purchase must be coordinated closely. ECF works only if both transactions are processed by HDB together.
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If the sale proceeds aren’t enough, you’ll need to top up the balance with cash or CPF.
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You still need to pay the option fee and downpayment first, but these may be refunded later through ECF.
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ECF doesn’t cover stamp duties, so prepare separate funds for that.
Got it?
The Enhanced Contra Facility (ECF) is a powerful tool for homeowners looking to buy and sell HDB flats at the same time. It reduces financial stress by letting you recycle your CPF and sale proceeds into your next flat.
But it’s not automatic. You need:
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Good planning,
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Close coordination between buyers, sellers, and agents,
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And clear understanding of the timelines.
With the right guidance, ECF can make your transition to a new home much smoother. If you need help finding out if you’re eligible to do ECF, just drop a message for us!
