What are the charges you could pay (apart from the house mortgage) earlier than promoting your HDB flat?

You will have accomplished the five-year Minimal Occupation Interval (MOP), and your rising household is itching to maneuver into a bigger dwelling. You will have made up your thoughts — you’re going to sell your present HDB flat in change for an even bigger and fancier dwelling. However there is only one downside: You might be uncertain of the bills to be paid earlier than promoting your HDB flat.

One of the vital vital issues you could settle is your excellent dwelling mortgage. On high of that, there are just a few different prices that you could pay earlier than promoting off your HDB flat.

1. Resale utility administrative payment

When do you pay? 

Each the vendor and purchaser are required to fork out the executive payment once they submit their respective portion of the resale utility by means of the HDB Resale Portal.

How a lot does it price?

Flat kind Resale utility payment (inclusive of GST)
1-room or 2-room flat S$40
3-room or bigger flat S$80

What’s the mode of cost?

There are three accepted cost strategies for the executive payment. By way of the HDB Resale Portal, you possibly can pay with both

  • Bank card (Mastercard or Visa)
  • PayNow
  • AXS

You probably have engaged a licensed property agent, they might help you submit the applying utilizing their Property Agent Toolkit.

When do you pay?

After HDB has obtained the resale utility from each the client and vendor, you may be requested to endorse the resale paperwork by way of the HDB Resale Portal. That is when you could pay the authorized charges.

How a lot does it price?

It relies on whether or not you’re partaking HDB’s solicitor to behave for you, otherwise you’re hiring a non-public lawyer to deal with the mandatory paperwork.

HDB resale flat legal fees
Supply: HDB

If you wish to get a fast estimate of the authorized charges, you should use HDB’s Legal Fees Enquiry Facility.

For those who’re hiring a non-public legal professional, the conveyancing payment for the discharge of housing mortgage continues to be the identical as will probably be paid to HDB. However for the remaining, it would depend upon the lawyer. Thus, you’ll want to first talk about their charges earlier than appointing one to behave in your behalf.

What’s the mode of cost?

There are three primary accepted cost strategies, specifically bank card, AXS and PayNow. You may also use your CPF financial savings to pay for the authorized charges portion (i.e. excluding Title Search Charge, Registration payment and Miscellaneous charges).

3. Property tax

When do you pay?

The annual property tax is normally paid in January for the entire yr. So that you’ll must submit the tax cost receipt in the course of the flat sale completion appointment.

How a lot does it price?

The property tax is calculated by multiplying your flat’s Annual Worth (AV) with the relevant tax fee. The AV is your flat’s estimated gross lease for one yr if it has been leased out. IRAS determines it based mostly on prevailing market charges.

In 2021, the median AV for a four-room flat is S$10,140.

For owner-occupied properties

These are the tax charges for residential properties the place the proprietor lives in it. On this article, we solely embrace the tax charges for properties with an AV of as much as S$30,000 since HDB flats generally have a decrease AV.

Right here’s the brand new property tax fee, as of 1 January 2023.

Annual Worth Tax fee Property tax payable 
First S$8,000 0% S$0
Subsequent S$22,000 4% S$880

With an AV of S$10,140, which means that the property tax is S$85.60, excluding the 60% one-off rebate for the year 2023.

For non-owner-occupied properties

These are the tax charges for residential properties that you simply lease out, efficient from 1 January 2023.

Annual Worth Tax fee Property tax payable 
First S$30,000 11% S$3,300
Subsequent S$15,000 16% S$2,400

You should utilize the IRAS Interactive Property Tax Calculators to search out out the property tax you could pay.

What’s the mode of cost?

The popular methodology of cost is GIRO. Different acceptable cost modes embrace:

  • PayNow
  • AXS
  • Web banking
  • SingPost

SELLING YOUR PROPERTY? Would you prefer to understand how a lot your property is price? Or perhaps you’re contemplating itemizing your property on the market? Let us know, and we’ll have a consultant reach out to you!

4. Service and Conservancy Costs (S&CC)

When do you pay?

You’ll need to pay your Service and Conservancy Costs (S&CC) as much as the day of resale completion, and you could settle this earlier than the resale completion appointment.

Couple using laptop to complete their HDB resale application
Be sure that you pay for S&CC as much as the resale completion date.

Another charges you might must pay 

On high of the above-mentioned charges, you’ll have to incur issues just like the SSD and agent charges.

1. Vendor’s Stamp Responsibility (SSD) 

The Vendor’s Stamp Responsibility (SSD) is payable in the event you promote your property inside three years. So for many HDB homeowners, they don’t need to pay this as a result of five-year MOP.

So within the particular case that you could promote your HDB flat inside three years, you’ll need to pay for the SSD.

You might also need to pay the SSD in the event you’re transferring the possession of your HDB flat inside three years.

How a lot does it price?

Date of flat buy Interval of possession SSD fee based mostly on buy worth/ market worth (whichever is increased) 
From 11 March 2017 and onwards As much as 1 yr 12 %
Over 1 yr, as much as 2 years 8%
Over 2 years, as much as 3 years 4%
Over 3 years No SSD payable

What’s the mode of cost?

There are a number of methods of paying the Vendor’s Stamp Responsibility. This contains:

  • GIRO
  • PayNow
  • AXS
  • FAST by way of DBS/POSB account
  • Web Banking
  • SingPost
  • Cheque/Cashier’s Order

2. Resale levy

You’ll must pay the resale levy in the event you’re shopping for a second subsidised flat. Listed below are just a few eventualities by which it’s important to pay it:

First HDB flat Second HDB flat Have to pay resale levy? 
BTO/ SBF/ open reserving (i.e. shopping for instantly from HDB) BTO/ SBF/ open reserving Sure
BTO/ SBF/ open reserving New launch EC Sure
Resale flat with grants BTO/ SBF/ open reserving Sure 
New launch EC BTO/ SBF/ open reserving Sure

Whenever you’ll must pay for it relies on if you unload your first subsidised flat. As an illustration, in the event you promote your first subsidised flat earlier than getting the keys to your second subsidised flat, you’ll need to pay your resale levy in money upon getting the keys to your second flat.

Then again, in the event you full the acquisition of your second subsidised flat (i.e. key assortment) earlier than promoting your first subsidised flat, your resale levy will probably be deducted from the sale proceeds, with any shortfall to be paid in money.

Study extra in regards to the resale levy right here.

3. Property agent fee 

For those who’re utilizing a property agent to promote your HDB flat, you’ll need to pay the agent fee too. Whereas there’s no mounted fee as to how a lot you could pay your agent, the widespread observe is that as a vendor, the speed to pay is 2% of the HDB flat promoting worth.

You possibly can learn extra in regards to the property agent fee charges right here.

HDB flats on the market

For those who discovered this text useful, 99.co recommends What an HDB second-timer should know earlier than deciding to promote and How your HDB sale proceeds would possibly get “taken” by CPF.