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Writer's pictureAaron Lin

Return HDB Grant After Selling? Understand Levy!

Summary

You don’t have to return your HDB grant to the government when you sell your property.


Purchasing a BTO or taking a grant to buy a resale flat counts as a first-time privilege.


As long as you don’t buy a BTO after your first-time privilege, you don’t have to pay a levy.


Article

Many have the misconception that receiving an HDB grant means that you have to return it to the government when you sell your property.


However, in reality, the grant you take will be deposited into your OA account, which can then be used to pay for the property. When you sell your house, the proceeds go back to your OA account. Naturally, interest is incurred since this is your CPF account. As such, when you sell your house, you do not need to return the grant to the government.


Purchasing a BTO or taking a grant to buy a resale flat counts as a first-time privilege. After this first-time privilege, you will need to pay a levy when you buy another BTO. As long as you don’t enjoy the “second-time privilege”, you won’t have to pay a levy.


Furthermore, the levy amount is not equal to the grant amount. There is a cap on the levy according to the size of the house. Ultimately, there is no such thing as having to return a grant.





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