Yes — HDB sale proceeds can be used for the condo downpayment, but the timing is critical. HDB sale must complete before condo final payment (typically the last 25% downpayment). Most upgraders use a bridging loan during the gap between OTP exercise and HDB sale completion, repaid from HDB proceeds.
HDB sale proceeds breakdown
| Component | Where it goes |
|---|---|
| Cash from sale price | Available for new condo downpayment |
| CPF refund to OA | Original CPF usage + 2.5% accrued interest |
| HDB loan repayment | Settled directly to HDB |
| Outstanding fees / charges | Deducted from proceeds |
| Net cash to seller | Sale price − HDB loan − CPF refund − fees |
For a S$680,000 HDB sale with S$200,000 outstanding HDB loan and S$120,000 CPF used: net cash ≈ S$360,000 + S$120,000 (CPF refund to OA) = S$480,000 total usable for new condo.
Timing alignment with condo payment
| Week | HDB | Condo |
|---|---|---|
| 0 | OTP signed | — |
| 2 | OTP exercised | OTP signed (1% cash) |
| 4 | HDB approval | OTP exercised (5% total cash) |
| 8–10 | Sale completes | Bridging loan covers gap; final 20% paid |
| 10–14 | Cash + CPF refund flows back | Loan disbursement; completion |
CPF refund details
When you sell HDB, CPF originally used for the property plus 2.5% per annum accrued interest is returned to your Ordinary Account. This CPF can then be used for the new condo (subject to standard private-property CPF rules including 120% withdrawal limit).
See upgrade framework.
FAQ
What if the HDB sale price is lower than expected?
Top up from other savings. Plan with conservative estimates.
Can I use HDB cash directly for the new condo cash component?
Yes — once HDB sale completes, the net cash is yours to deploy.
How is accrued interest computed?
Compounded at 2.5% per annum on original CPF used. A S$100k OA withdrawal in 2010 returns ≈S$152,000 in 2026.