HDB Buyer Guide
In this guide, we’ll walk you through the steps to expect when buying a resale HDB flat. From the types of scheme, CPF grants available to the submission of the resale application.
Over the years, Housing & Development Board (HDB) has built a variety of flats to cater to different household sizes and needs. Here’s a quick guide to HDB housing types in Singapore.
| 2-Room | 3-Room | 4-Room | 5-Room |
|---|---|---|---|
| 1 🛌 1 🛀 | 1 🛌 1 🛀 | 1 🛌 1 🛀 | 1 🛌 1 🛀 |
| 45 Sqm | 70 Sqm2 | 90 Sqm | 110 Sqm |
| EA | EM | Multi-Gen | Jumbo |
| 125 Sqm | 145 Sqm | 115 Sqm | 175 Sqm |
| 3 🛌 2 🛀 | 3 🛌 3 🛀 | 4 🛌 3 🛀 | 4 🛌 3 🛀 |
Here a Quick Summary Of HDB Resale Buyer Procedures
| Step 1. Check Your Eligibility To Buy Step 2. Check Your Finances Step 3. Choose Your Type of Loan Step 4. Register Intent To Buy Step 5. Arrange For house Viewing Step 6. Place Deposit For A Unit | Step 7. Request For Valuation Step 8. Exercise Option To Purchase Step 9. Submit Resale Application Step 10. Acquire Approval From HDB Step 11. Endorse Resale Documents Step 12. Attend HDB Completion |
There are some of the basic criteria to buy an HDB resale flat
Citizenship - One Singaporean with another Singaporean (SC)/Permanent Resident (PR)/Foreigner or Two Permanent Resident (must have SPR status for 3 years).
Age - At least 21 years old to purchase with a family nucleus. For single who are unmarried or divorced, you need to be 35 years old except for windowed, or an orphan can be 21 years old.
Family nucleus - Buyers are required to form a nucleus under HDB Purchasing Scheme.
Ethnic Integration Policy (EIP) and Singapore Permanent Resident (SPR) Quota (Malaysians are only affected on the EIP quota). To check Click here.
Income ceiling - There is no income ceiling for buying an HDB resale flat. However, there are income ceilings for CPF Housing Grants and HDB housing loans.
Ownership/ interest in property in Singapore or overseas other than HDB flat - All applicants and occupiers listed in the resale application:
Must not own or have an interest in any local or overseas private residential property; and
Must not have disposed of any private residential property in the last 15 months before the resale application.
The above conditions do not apply to senior citizens (and their spouses) aged 55 and above who are moving from their private residential property to a 4-room or smaller resale flat. Nevertheless, these seniors must dispose of the residential property within 6 months of the completion of the flat purchase.
If you own or have an interest in any local or overseas private property or have disposed of any private property in the last 30 months before the resale application or application for an HDB Loan Eligibility letter, you are not eligible for CPF housing grants (excluding Proximity Housing Grant) and/ or an HDB housing loan.
HDB Purchasing Scheme - The eligibility conditions in the following table applies to all resale flat purchases.
| Type of Scheme | Details |
|---|---|
| Public SC + SC SC + PR PR + PR (PR at least 3 years PR) | Buying an HDB resale flat with your family. Family Nucleus: Spouse and children / Parent and siblings / Children under your legal custody and control. |
| Fiance / Fiancee SC + SC SC + PR PR + PR (PR at least 3 years PR) | Buying an HDB resale flat with your fiancé or fiancée. Your spouse to be, must be listed in the application as either:a co-applicant (if 21 years old or above) / an occupant. And ROM within 3 months from resale completion date. |
| Single SC | Buying as a single. You must be at least 35 years old if you are unmarried or divorced, and at least 21 years old if you are widowed or an orphan.For orphan, please refer to orphans' scheme. |
| Joint Single SC SC + SC(s) | 2 to 4 singles can jointly buy with all the co-applicants must be SCs. You must be at least 35 years old if you are unmarried or divorced, and at least 21 years old if you are widowed or an orphan.For orphan, please refer to orphans' scheme. |
| Non-Citizen Spouse SC + FRGN | If your spouse is a foreigner, you can buy an HDB resale flat under the Non-Citizen Spouse Scheme. Age 21 up, spouse must have valid Long Term Visit Pass or Work Pass at time of resale application with at least 6 months pass validity except 35 years old. |
| Non-Citizen Family SC + FRGN | Age 21 up, you can form family nucleus with either parents or sibling or children under your legal custody, care and control. At least 1 parent / child must have a valid Long-Term Pass or Work pass at time of resale application with at least 6 months pass validity. |
| Orphans SC + SC / PR | Age 21 up, must include at least 1 more single SC or PR Sibling as co-application or occupier At least one of your deceased parents must be SC or PR. If below 35 years old, must not have another sibling who is younger than 35 years old buying/owning another flat under the: Orphans, single or joint singles scheme. |
| Conversion SC + SC / PR | Conversion Scheme allows you and your family to buy adjoining flats that are 3-room or smaller and convert them into 1 unit. Family Nucleus: Spouse and children / Parent and siblings / Children under your legal custody and control. |
Financing for your flat purchase
Before you purchase an HDB flat, you’ll need to work out your budget and consider the following:
CPF and Cash Saving
You can use your CPF OA savings to help finance your home purchase. Such as Down-payment, Stamp duties, Legal fees, and Home Protection Scheme premiums (HPS for HDB flats only).
And your cash saving that has been set aside for flat purchases. Which can be used for the initial deposit, cash over value (COV), or down payment towards the flat purchase.
CPF Housing Grant - The Government provides housing subsidies in the form of CPF grants. You can use them for the initial payment for the flat or to reduce the mortgage loan but not for any form of cash payment for the initial deposit and COV. Types of Grant available for HDB resale flat;
Family grant (1st Timer)
Enhanced Housing Grant (Income Ceiling Grant)
Proximity Housing Grant (Near Parent/Married Child) Check eligibility here.
Step-Up Grant (New flat)
Top-Up Grant (Become a Citizen)
Half-Housing Grant (1st Timer & 2nd Timer)
CPF housing grant eligibility criteria.
| Criteria | Details |
|---|---|
| Status | First-Timer, have NOT enjoy any form of housing subsidy • Not taken and sold a BTO, New EC or New DBSS flat • Not received any CPF Housing Grant • Not benefitted under the En bloc Scheme (SERS), HUDC estate privatisation |
| Citizenship | Singapore Citizen |
| Family Nucleus | You must form a family nucleus with one of the HDB Scheme |
| Age | At least 21 / 35 years old ( depending on scheme) |
| Income Ceiling | Your average gross monthly household income must not exceed: • $7,000 (Single) • $14,000 (Family) • $21,000 (if purchasing with extended family) |
| Flat Type | 2-room or bigger |
| Remaining Lease of Flat | 20 years or more |
| Ownership/ Interest in Property | All applicants and occupiers listed in the flat application: • Do not own other property locally or overseas, and have not disposed any within the last 30 months • Cannot invest in private residential property from the date of flat application until after the 5-year MOP of the flat • Must not be buying an HDB flat that has been announced for SERS |
CPF Housing Grant Table
| Type of Scheme | Details | Grant Amount |
|---|---|---|
| Public (21 year old) Fiance & Fiancee (21 year old) Conversion Scheme (21 year old) | Family Grant | SC+SC (1st Timer) (Income Ceiling $14,000) 2-4 Room $50,000 || 5 Room or Bigger $40,000 SC+PR (1st Timer) (Income Ceiling $14,000) 2-4 Room $40,000 || 5 Room or Bigger $30,000 Eligible for Top-up grant within 6 months SC+SC (1st & 2nd Timer) 2-4 Room $25,000 || 5 Room or Bigger $20,000 |
| PHG | Live within 4km $20,000 (parents/child) Live with $30,000 (parents/child) | |
| EHG | From $5,000 to $80,000 (Avg Gross Income Ceiling $9,000) | |
| Single (35 year old) Non-Citizen Spouse (21 year old) Non-citizen Family (Follow Single Grant) | Single Grant | SC (1st Timer) (Income ceiling $7,000) 2-4 Room $25,000 || 5 Room $20,000 Eligible for Top-up grant within 6 months SC+Non-Citizen Spouse (Income ceiling $14,000) 2-4 Room $25,000 || 5 Room or Bigger $20,000 Eligible for Top-up grant within 6 months |
| PHG | Live within 4km $10,000 (parents/child) Live with $15,000 (parents/child) | |
| EHG | From $2,500 to $40,000 (Avg Gross Income Ceiling $4,500) | |
| Joint Singles Scheme or Orphans Scheme (35 year old) | Single Grant | SC+SC(s) (1st Timer) (Income ceiling $14,000) 2-4 Room $25,000 || 5 Room $20,000 (1 Single) 2-4 Room $25,000 x 2 || 5 Room $20,000 x 2 (2 Singles) (Max 2 Grants) |
| PHG | Live within 4km $10,000 (parents/child) Live with $15,000 (parents/child) | |
| EHG | From $5,000 to $80,000 (Avg Gross Income Ceiling $9,000) |
Choose the type of Mortgage Loan
A crucial step in the HDB resale process is to decide whether you’re taking an HDB or Bank loan. For HDB there are two financial institutes you can apply from, which are banks and HDB. It’s important to get the indicative loan approved before you arranged for a house viewing.
If you intend to get an HDB housing loan, you’ll need to apply for an HDB Loan Eligibility (HLE) letter (typically take up to 14 days to get approved) before the OTP can be granted. Here are some key differences between an HDB and a bank loan.
| HDB | BANK | |
|---|---|---|
| Interest Rate | 2.6% | 2.7% - 3.4% (subject to fixed or floating SIBOR interest rates) |
| Income Ceiling | Monthly household Income must not exceed $7,000 (singles) $14,000 (families) | Subject to Bank |
| Maximum Loan Amount | Up to 80% of the value or price, whichever is lower | Up to 75% of the purchase price |
| Downpayment | Up to 20% (can be paid in cash or using CPF) | Up to 25% (5% Cash, 20% Cash or CPF) |
| Early Repayment Penalty | No Penalty | Various with Bank |
| Late Repayment | 7.5% per annum | Various with Bank |
| In-Principle Approval (IPA) for Loan Amount | HDB Loan Eligibility (HLE) Application (14 days) Click here | In-Principle Approval (IPA) apply from bank and valid for 30 days |
| Place Deposit to obtain OTP | After HLE ready | Before Loan ready |
Register Intent To Buy
The next step is to register your Intent to Buy which can be done via the HDB Resale Portal which is valid for 1 year. It only requires one party (buyer) to register and key in the partner details. The details must be consistent throughout the resale process.
Registering allows you to assess your eligibility to buy a resale flat, the grants you’re entitled to, and your eligibility to apply for an HDB housing loan.
Arrange for House Viewing
Here are some pointers you should look out for when viewing properties:
Location (transportation. amenities such as school / market)
Budget
Remaining lease of the flat (which will affects loan to value and also CPF usage and repair work)
Time (When do you want or need to move)
Note: Some sellers may request for a temporary extension of stay, permitting them to stay for up to an additional 3 months before moving out. This is to consider, should you need to move into a new place quickly.
Here are some useful tips you can use when negotiating to seal the deal:
Use past transactions for similar model, size and floor level as a guide to set your offer.
Learn more about the seller’s circumstances – whether he requires extension stays or other terms and conditions.
Ask the seller’s agent (if any) about the lowest price the seller’s willing to accept.
Placing the Option Fee (Deposit) and exchange for the Option To Purchase (OTP)
After finding your dream house and agreeing on the price, you can proceed to the HDB OTP. HDB OTP is an agreement between the buyer and seller, granting you exclusive rights to purchase the flat after the seller has accepted your offer (Seller signed on Page 8). Few important factor to note:
Option Fee not more than $1,000. and Exercise Fee (market practice $4,000) determined by both parties which make up of the total deposit not exceeding $5,000)
HDB OTP valid for 21 days.
Discuss and indicate the HDB OTP validity period in Page 4, for submitting of resale application to HDB.
Name and Nric as indicated on the HDB OTP must be the same as Identity Card.
Request For Valuation
A Request for Valuation is an estimation by HDB of how much the resale flat is worth. This is important because it affects the amount of CPF savings and housing loan you can use for your purchase. It also determines the cash over valuation (COV) to pay for your resale flat.
COV is the difference between the selling price and the HDB valuation of the flat. Assuming the selling price of the flat is $520,000 with a valuation of $500,000, the COV will be at $20,000.
The processing fee for each Request for Value is $120 (GST inclusive). Click here. Information required are:
You’ll need to submit the request by the next working day after obtaining the HDB OTP.
Should HDB decide that a valuation is needed, they will assign the valuer for you normally within 3 days.
Valuation report will be ready estimated 7-10 days, and will be available online via buyer HDB resale portal.
The valuation report will be valid for 3 months.
Exercise the Option To Purchase
Upon receiving the results of the valuation,
For HDB Loan buyer - you may proceed to pay the option exercise fee and endorsed on the page 8 of the OTP.
For Bank Loan buyer - you will need to sent the report to your banker for the preparation of bank letter of offer (LO) and upon the LO is ready you may proceed to exercise the HDB OTP.
Submit Resale Application
Next, both buyer and seller can proceed to submit your respective resale applications. Click here. Both parties are required to submit the application within 7 days of each other, Upon the submission by the second party, the resale application will be considered complete. Otherwise, the application will be canceled and the admin fee will be forfeited.
Upon receipt of the application HDB will verify the eligibility, and review the supporting documents submitted. HDB will notify sellers and buyers of its acceptance of the application via SMS and emails, within 14 working days. The date of HDB’s acceptance marks the beginning of the 8 weeks of processing time.
Fees Payable for processing of Resale Application:
1 - 2 Room $40.
3 rooms & bigger $80.
To submit the resale application, the following information is required:
Resale Flat address
Option to Purchase details
Personal Particulars of all buyers/occupiers
Softcopy personal documents of buyers/ occupiers
Softcopy income documents (if applying for CPF Housing Grant)
After you have submitted your resale application, please inform your sellers to submit their portion within 7 days. Otherwise, the application will be canceled, and no refund will be given.
Acknowledge and Endorse Resale Documents
HDB will review your application and prepare the relevant documents for you to endorse. Once they’re ready, you’ll receive an SMS from HDB to endorse the documents within 6 days via HDB Resale Portal. If buyers or sellers fail to endorse the documents within the extended deadline, HDB may cancel the resale application.
The resale documents must be endorsed individually by all the buyers and its include:
Buyer’s financial plan
HDB will prepare a proposed financial plan (only for HDB Loan buyers)
If you wish to make changes, you can revise your financial plan and endorse the revised financial plan.
CPF Withdrawal
With your endorsement on the HDB Resale Portal, the CPF Board will release your CPF monies to pay for your flat purchase.
Do ensure that you and your co-buyer(s) have sufficient CPF funds in your respective CPF Ordinary Accounts for the payment before the endorsement.
Health Declaration Forms for Home Protection Scheme (HPS)
You are required to fill up the Health Declaration Forms (HPS) to declare your share of coverage and health status for the CPF Board’s Home Protection Insurance Scheme.
Approval will be granted approximately 2 weeks after the documents have been endorsed by both the buyer and seller. Once the resale application is approved, HDB will notify flat sellers and buyers via SMS and emails. The approval letter will also be posted on the HDB Resale Portal.
In the meantime, you’ll need to pay fees such as the HDB caveat and conveyancing fees. You’ll also need to purchase the mandatory HDB Fire Insurance Policy if you’re taking a housing loan from HDB.
Attend Resale Completion
The final step is to attend the resale completion appointment, which is usually scheduled about 8 weeks after HDB’s acceptance of the resale application. Buyers and sellers will attend only 1 resale appointment at HDB. The actual date and time of your resale completion will notify via SMS once it is scheduled. You can also check the appointment details from the HDB Resale Portal.
Note. If you have engaged private solicitors, your solicitor representative will attend the resale completion appointment on your behalf.
Before Completion
Inspect the Flat - To check that the flat is in order and delivered to you with vacant possession.
Buy Fire Insurance - Have valid fire insurance, if you are taking an HDB housing loan. You can buy the fire insurance online at FWD’s website, print out the Certificate of Insurance and produce it during the resale completion appointment.
Make Payment - You must pay the balance purchase price of the flat and outstanding stamp fees (if any) at the resale completion. The payment can be made via AXS Machine or via a Cashier’s Order (made payable to HDB). You will hand the payment receipt or Cashier’s Order to the Customer Relations Executive (CRE) when you attend the resale completion.
During Completion
Bring along Original Identity cards
Original Option to Purchase
Payment receipts and/ or Cashier's Order
Certificate of Insurance (for fire insurance, if applicable)
Sign the mortgage document/ agreement (if you are taking an HDB housing loan)
Acknowledge the receipt of the keys to the flat
Apportion the payment of the property tax with the sellers
Indicate how you will pay the first month's service/ conservancy charges
Note: Should the agreement had made for a temporary extension of stay for up to 3 months to the seller, the keys’ handover will be in a private settlement.
Temporary Extension of Stay for sellers
This temporary extension of stay is regarded as a private arrangement between the flat sellers and buyers, HDB will not mediate if there is any dispute. Both parties may sign a private agreement on the terms of the extension of stay.
An administrative fee of $20 (inclusive of GST) is payable by the flat buyers, the future owners of the flat agreeing to the extension.
Read more on the Terms & Conditions for Temporary Extension of Stay by flat sellers. Click here.
