HDB Resale Levy is very confusing to many people, especially when you suddendly needs to flash back when the subsidised HDB flat was sold and need to know urgently how much Resale Levy need to be paid?
In oder to have a better understanding of HDB resale levy, we need to remember three periods, which is before 19 May 1997, between 19 May 1997 to 3 March 2006 and after 3 March 2006.
1. Before 19 May 1997 – HDB sellers are given two options classify as follows:
i) Resale Levy – The resale levy is compute base on the selling price of 1st subsidised flat. However sellers need to make full payment before HDB can issue keys for the 2nd subsidised flat.
ii) Premium Resale Levy – The premium Resale levy is compute base on purchase price of 2nd subsidised flat and the Premium Resale Levy amount form part of the purchased price. Therefore sellers can pay the Premium Resale Levy by instalments using their CPF.
2. Between 19 May 1997 to 3 March 2006 – Deferred Resale Levy
A Deferred Resale Levy allow the HDB flat sellers to postpone paying the resale levy at later date with an annual interest rate of 5% based on selling price of 1st HDB subsidised flat.
3. After 3 March 2006 – All Resale Levy is set at fixed amount depend on 1st subsidised HDB flat selling price without interest.
You can perform a quick estimated check here for what is the outstanding Resale Levy amount and please double confirm with HDB for actual figure.