A flat that sells for S$1.35 million does not put S$1.35 million in your bank account. Between the sale price and the cash you can actually use for your next move sit any outstanding loan, the agent's commission, legal fees, and a CPF refund that almost every seller underestimates, because the interest part keeps growing for as long as you hold the flat.
Short answer: Before you see cash, your sale price is reduced by any outstanding loan, commission, legal fees and the full CPF refund: the principal you used plus accrued interest at 2.5% a year, compounded. The CPF part is not lost, it goes back to your Ordinary Account, but it is not cash for your next downpayment.
What gets deducted before you see any cash?
Four things come off the sale price: any outstanding HDB or bank loan, your agent's commission (negotiable; sellers commonly budget 1% to 2%), legal and conveyancing fees (usually a few thousand dollars), and a small HDB administrative fee. What is left is your proceeds before the CPF refund. Many sellers treat that figure as their money. It is not the whole story yet.
Why does CPF accrued interest surprise so many sellers?
Any CPF money you used to buy the flat, or to pay the mortgage since, must go back to your CPF Ordinary Account when you sell, together with the interest it would have earned: 2.5% a year, compounded, for the whole time it was out (CPF Board). The longer you have owned the flat, the bigger that interest, and it keeps growing every month you hold.
You do not lose this money. It returns to your own CPF account and can be used for your next property. But it is not cash in hand, so if your next purchase needs a cash downpayment or money for renovation, the gap can be much bigger than expected. Check your own CPF statement before you price your flat.
What does a full net proceeds calculation look like?
An illustration, not a real transaction: a 5-room flat bought for S$660,000 in 2015, with S$420,000 of CPF used, sold about 11 years later for S$1,350,000. For simplicity it assumes the CPF was used at the start and the loan is fully paid.
- Sale price: S$1,350,000
- Less outstanding loan: S$0
- Less agent commission at 2%: about S$27,000
- Less legal fees: about S$2,500
- Proceeds before CPF refund: about S$1,320,500
- Less CPF principal returned to your account: S$420,000
- Less CPF accrued interest at 2.5% a year over 11 years: about S$131,000
- Cash in hand: about S$769,500, with S$551,000 back in your CPF account
In this illustration, about S$131,000 of the sale price never reaches the bank account as cash, though none of it is lost. That one number is usually the gap between what a seller expects to have for a downpayment and what they actually have.
Does the same apply to a smaller flat?
Yes. A second illustration: a flat bought for S$380,000 and sold for S$900,000. After commission of about S$18,000 and legal fees of about S$3,000, the proceeds before the CPF refund are about S$879,000. The CPF principal and interest still come off before any cash is available, and how much depends entirely on how much CPF you used and for how long. Check your own figure with CPF Board before you list, not after an offer arrives.
Run these numbers before listing if
- You bought more than five years ago and used CPF for the purchase or the mortgage
- You plan a cash downpayment on your next home
You can treat this more lightly if
- You used little or no CPF for your flat
Before running your own numbers, check whether the market supports your price, in Million-dollar HDB in 2026: sell now or wait?. And if you are buying private with the proceeds, the order of your sale and purchase affects your stamp duty and loan, in Selling your HDB to buy private: get the order right.
Questions owners ask
Is CPF accrued interest money I lose?
No. It goes back into your own CPF Ordinary Account, not to the government. It simply is not cash you can spend straight away, which matters if your next purchase needs a cash downpayment.
How is CPF accrued interest worked out on an HDB sale?
It is 2.5% a year, compounded, on all the CPF you used for the purchase and the mortgage, for the whole time it was out of your account (CPF Board). The longer you hold the flat after using CPF, the larger the refund.
What fees should I budget for besides CPF?
Agent commission, which is negotiable; sellers commonly budget 1% to 2%. Legal and conveyancing fees, usually a few thousand dollars. And a small HDB administrative fee. Agree the commission before you list.
Can I estimate my net proceeds before a valuation?
You can estimate the fees fairly well in advance. The CPF part depends on your own history, so check your CPF statement or ask CPF Board for your accrued interest. That gives a far more accurate number than any general illustration.
Does the CPF refund change what I can put down on my next home?
Yes. Your cash for a downpayment is your proceeds minus the CPF principal and interest returned to your account. The refunded CPF can still be used for the next purchase, but through CPF, not as cash. Speak to a licensed financial adviser for advice specific to your situation.
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CPF Board, refund of CPF and accrued interest on sale of property; HDB, resale procedures and fees. Figures in the illustrations are examples, not real transactions.
This article is for informational and educational purposes only. It does not constitute financial, investment, or legal advice. Property investments involve risk. Past performance is not indicative of future results. Readers should seek independent advice from licensed professionals before making any property or financial decision. James Ong is a licensed real estate salesperson (CEA Reg No. R008385F) with PropNex Realty Pte Ltd and is not a licensed financial adviser.
James Ong | CEA Reg No. R008385F | PropNex Realty Pte Ltd
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