Planning your flat purchase
Find out your eligibility to buy an HDB flat
The eligibility criteria to buy an HDB flat depends on your citizenship, age, income ceiling as well as whom you are buying the flat with.
Another criteria to note is that you, and whoever listed in your application, do not own other property overseas or locally, and have not disposed of any within the last 30 months.
From 9 May 2023, you must have a valid HDB Flat Eligibility (HFE) letter before you can:
- apply for a flat in HDB's sales launches or open booking of flats.
- obtain an Option To Purchase (OTP) from a flat seller and when submitting a resale application to HDB.
The HFE letter will provide you with a holistic understanding of your housing and financing options and help you plan your flat budget before you embark on your home buying journey. If you are a second-timer, it will also provide information on the resale levy or premium that you will have to pay if you purchase another subsidised flat from HDB.
Plan your finances
It's important for you to work out your flat budget before committing to a flat purchase. Use the budget or payment plan calculator to work out a customised financial plan.
You can check your eligibility for an HDB housing loan when you apply for a HDB Flat Eligibility (HFE) letter.
You may also finance your flat purchase with a housing loan from a financial institution (FI) that is regulated by the Monetary Authority of Singapore (MAS).
You should consider and compare the different FI loan packages offered.
If you intend to take an FI loan, you may request for an In-Principle Approval (IPA) and Letter of Offer (LO) from the participating FIs through the integrated loan application service on the HDB Flat Portal.
You can use your CPF Ordinary Account (OA) savings to pay for your new or resale HDB flat. Explore how your housing decisions can impact your retirement goal with the Home Purchase Planner.
If you are a first-time homebuyer, you should also consider the various payments to make for an HDB housing loan, should you require one.
Check your affordability and minimise the housing loan amount and repayment period to save interest costs. Find out through the ABCs of financial planning when working out your flat buget.
You can consider the Contra Payment Facility if you are buying an HDB flat and currently own another HDB flat.
This can help you to:
- Reduce the cash outlay needed for your flat
- Reduce the housing loan amount needed and the subsequent monthly repayments (without incurring interest)
- Collect the keys to your flat while selling your existing flat
First-time buyers may receive an Enhanced CPF Housing Grant of up to $120,000 when buying a new flat from HDB.
If they buy a resale flat, they can get up to $230,000 in housing grants. This comprises of the CPF Housing Grant of up to $80,000, Enhanced CPF Housing Grant of up to $120,000, and Proximity Housing Grant of up to $30,000.
Note: The amount of grants obtained has to be returned to your CPF Ordinary Account with accrued interest when you sell your flat later. It is not the same as a subsidy where the prices are 'discounted'.
With your HFE Letter, you can begin your buying journey with certainty.
Applying for a flat from HDB
Before you apply
Before you participate in a sales launch or open booking of flats, you need to obtain a HDB Flat Eligibility (HFE) letter to check your eligibility to buy a new flat and whether you can obtain a HDB housing loan and the CPF housing grant.
Learn more about flat and grant eligibility on HDB's website.
There are various types of flats with different specifications built to suit a variety of needs:
- 2-room Flexi for small families, singles and elderly
- 3-room for cosy and compact home
- 4-room for a comfortable living space
- 5-room for larger households
To buy a new flat from HDB, you need to apply during a sales launch. Check upcoming HDB sales launches and stay updated with email updates
By applying through HDB Priority Schemes, you could improve your chances of getting a balloted number to book an HDB flat. However, do note that you can get priority for only up to 2 schemes.
What to expect
You can read more about an overview of the buying process timeline on HDB's website.
Steps involved
You may apply for a flat via Build-To-Order, Sale of Balance, or Open Booking. Use the HDB Flat Portal to search for a flat.
As an applicant, you can check for updates regarding your flat application and whether a queue number has been balloted to you.
If you have been shortlisted, you will be notified and invited to an HDB flat selection appointment within 2 weeks from the release of your ballot results.
At this appointment, you will be required to pay a booking fee via NETS.
The booking fee ranges from $500 to $2000, depending on the type of flat you choose.
You and all persons listed in the application will also need to bring along original copies of these documents for the Agreement of Lease:
- Identity cards of all persons listed in the application
- Letter of Offer from the financial institution if you are taking a housing loan from a financial institution
- Latest CPF statement(s) if you are currently employed with CPF Board
- Power of Attorney (if you are authorising someone to represent you)
- The person representing you must bring one certified true copy by the solicitors and two photocopies of the signed Power of Attorney
You will also need to log into your Singpass during your appointment if you intend to use CPF savings to pay for your downpayment, which is usually 10% of the flat price. You can consider if you can split your downpayment into 2 instalments using the Staggered Downpayment Scheme.
You'll be invited by HDB to collect your keys when your project is ready. Check your HDB appointment online to know when you can collect your keys.
Do bring along original copies of these documents for your appointment:
- Identity cards of all persons listed in the application
- Certificate of insurance
- You must buy fire insurance from HDB's appointed insurer, FWD Singapore Pte Ltd (FWD), if you are taking an HDB housing loan.
- Latest CPF statement(s) if you are currently employed with CPF Board
- Power of Attorney (if you are authorising someone to represent you)
- The person representing you must bring one certified true copy by the solicitors and two photocopies of the signed Power of Attorney
- Signed GIRO form if you are paying monthly loan instalments partially or fully by cash
You will also be required to log into your Singpass during your appointment if you intend to use CPF savings to pay for your monthly loan instalments.
Buying an HDB resale flat
Eligibility criteria
Before you obtain an Option to Purchase (OTP) from a flat seller and submit a resale application to HDB, you need a valid HDB Flat Eligibility (HFE) Letter. The HFE letter will check your eligibility to buy a resale flat and whether you can obtain an HDB housing loan and CPF housing grant.
Learn more about flat and grant eligibility on HDB's website.
What to expect
Steps involved
To start, you need to first apply for a HDB Flat Eligibility (HFE) letter to know if you can:
- Buy a HDB resale flat
- Apply for which CPF housing grants
- Apply for HDB housing loan (if you intend to loan from HDB)
When evaluating options, take note of these considerations:
- Check details of the flat options such as past resale transactions, Ethnic Integration Policy quotas, Singapore/PR quotas.
- Check other HDB resale statistics such as resale price index for overall HDB resale pricing trends.
To enter into a OTP contract, you would be required to go through the following steps after agreeing on the selling price with the seller.
- Seller grants OTP to you with the agreed amount of Option Fee (between $1 to $1,000)
- Review purchase during Option Period of 21 days 3. Exercise OTP to proceed with the purchase
You can also choose to let the OTP expire if you decide not to purchase.
During your application for a HFE letter, you would be informed of your eligibility for buying a HDB resale flat as well as the amount of HDB housing loan that you are eligible for, should you require one.
You can also get a housing loan from a financial institution (FI).
You and the seller (or the salesperson) can proceed to submit the resale application after you have exercised the Option to Purchase (OTP).
Do note that either you or the seller can be the first to submit, but the other party must submit their portion within 7 calendar days.
You will be invited by HDB to endorse resale documents and pay the resale fees online before approving the transaction.
It could take about 8 weeks from HDB's acknowledgement of the resale application to the final step of completing the resale transaction.
Check your resale application status or get notified via SMS once HDB approves.
Once HDB has scheduled your appointment, you will also receive SMS notification on your appointment with HDB.
This is the only resale appointment at HDB you and the seller need to attend. At this appointment, you (and the seller) will:
- Sign the mortgage document or agreement (if you are taking an HDB housing loan)
- Acknowledge the receipt of the keys to the flat
- Agree on the payment arrangement of the outstanding property tax with the seller
- Indicate how you will pay the first month service or conservancy charges
You will become the flat owner upon the resale completion and need to pay for various payments such as housing loan, monthly service or conservancy charges, annual property tax, etc.
See also: Financial Obligations as HDB owner