**1. Will CPF automatically top up your Retirement Account (RA)?**
**Yes, CPF will automatically divert your CPF housing refund to top up your RA first.**
* **The Process:** When you sell, the proceeds first refund any CPF principal you originally withdrew plus 2.5% accrued interest back to CPF.
* **The Age 55+ Rule:** Because you are above 55 and your RA currently has zero balance, that refunded CPF money **will not remain in cash or stay in your Ordinary Account (OA)**. The CPF Board automatically sweeps this refund into your RA up to your cohort’s **Full Retirement Sum (FRS)** to fund your lifelong CPF LIFE monthly payouts.
* **Can you retain the difference as cash?**
* Only the sale proceeds that exceed your total CPF refund (i.e., pure net cash profit above your CPF usage + accrued interest) go directly to your bank account as cash.
* However, once you purchase the replacement 3-room resale flat and its remaining lease covers you to at least age 95, you can apply to **pledge the replacement flat**. This allows you to reduce your RA requirement from FRS down to the **Basic Retirement Sum (BRS)** and withdraw the difference in cash from age 65.
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### 2. Estimated Cash Outlay to Prepare in Advance
During a simultaneous or back-to-back buy-sell transaction, you need upfront cash buffer before sales proceeds are disbursed at completion:
* **Option Fee & Exercise Fee (OTP):** Up to **S$5,000** cash paid to the seller.
* **Buyer’s Stamp Duty (BSD):** For a typical 3-room resale flat (~S$380,000 – S$450,000), BSD is roughly **S$5,800 – S$7,900**, payable via cash or CPF within 14 days of exercising the OTP.
* **Cash-Over-Valuation (COV):** Budget **S$0 – S$20,000** depending on flat condition and negotiated price.
* **HDB Admin, Valuation & Conveyancing Fees:** Approx. **S$2,000 – S$3,000**.
**Total Estimated Upfront Cash Buffer:** **S$15,000 to S$30,000** is recommended to navigate the purchase smoothly before your Central Region flat’s net sale proceeds land.
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Gan Eng Joo Onassis 颜荣裕, REALTOR®
MSc BIT (Middlesex, UK); BBA (UniSA)
CEA Reg No: R021244C | Mobile:
(+65) 88899918
Email: onassis@sgagent.com
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