RES exam question on HDB Policies: Mr and Mrs Pang are selling the 4-room resale flat they bought in 2018 with a CPF…
Mr and Mrs Pang are selling the 4-room resale flat they bought in 2018 with a CPF Housing Grant, their CPF savings and an HDB loan. Salesperson Ruth explains what must be paid out of the sale proceeds before they receive any cash. Which of the following statements is/are correct? (i) Since the grant was a housing subsidy, it need not be refunded on the sale. (ii) The outstanding HDB loan is repaid out of the sale proceeds before any CPF refund. (iii) The CPF savings they used, with accrued interest, are refunded to their own CPF accounts.
- A(iii) only
- B(ii) and (iii) only
- C(i), (ii) and (iii)
- D(i) and (iii) only
Show answer & explanation
Answer
B. (ii) and (iii) only
Explanation
Answer: (ii) and (iii) only. The loan is repaid first, then the CPF savings and the grant both go back to their CPF accounts with accrued interest.(ii) True. On a sale the outstanding housing loan is repaid first.(iii) True. The CPF savings used for the flat, with accrued interest, are refunded to the owners' own CPF accounts.Watch out: Calling the grant a subsidy does not exempt it from the CPF refund.Rule: Sale proceeds first repay the outstanding housing loan. CPF savings and any CPF housing grant used for the flat are then refunded to the owners' CPF accounts with accrued interest.Source: CPF Board, CPF refund when selling or transferring property, read 1 Oct 2026; /learn/cpf-housing-grants-and-hdb-resale
Why the other options are wrong
- (i) False. The grant is a housing subsidy, but it was credited to their CPF accounts and used for the flat, so it is refunded with accrued interest like the rest.
Study the concept behind this question: CPF Housing Grants & the HDB Resale Process
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