PropertySmart SG

Step-by-Step Guide to Buying an HDB Resale Flat in Singapore

Purchasing an HDB resale flat is a popular choice for many Singaporeans and Permanent Residents. This guide outlines the key stages involved, from checking your eligibility to collecting your keys.

1

Check Eligibility & Apply for HDB Flat Eligibility (HFE) Letter

This is the crucial first step before you start your search.

  • Eligibility Schemes: Understand the various HDB eligibility schemes (e.g., Public Scheme, FiancĂ©/FiancĂ©e Scheme, Singles Scheme). Check your citizenship, age, income ceiling, and family nucleus requirements on the HDB website.
  • HFE Letter: Apply for an HFE letter via the HDB Flat Portal. This letter will confirm your eligibility to:
    • Buy a new or resale HDB flat.
    • Receive CPF housing grants (and the grant amounts).
    • Take up an HDB housing loan (and the loan amount).
  • You must have a valid HFE letter before obtaining an Option to Purchase (OTP) from a seller. The HFE letter is valid for 9 months.
  • Use our Affordability Calculator for a preliminary check, but the HFE letter provides the official HDB assessment.
2

Financial Planning & Loan Options

Once you have your HFE letter, you'll have a clearer picture of your finances.

  • Budgeting: Determine your total budget, considering the flat price, potential Cash-Over-Valuation (COV), stamp duties, legal fees, and renovation costs. Our Full Property Buying Calculator can help estimate overall costs.
  • Loan Choice:
    • HDB Housing Loan: If your HFE letter indicates eligibility, this is an option. The interest rate is pegged at 0.1% above the CPF OA rate.
    • Bank Loan: You can also opt for a bank loan. Compare interest rates and terms from various banks. An In-Principle Approval (IPA) from a bank is recommended if you choose this route. Our Mortgage Loans Guide provides more details.
  • CPF Usage: Understand how much of your CPF OA can be used for downpayment and monthly instalments with our CPF Usage Guide.
3

Search for a Resale Flat & Conduct Viewings

  • Utilize the HDB Resale Portal or other property portals. You can also engage a property agent.
  • Consider location, flat type, size, remaining lease, condition, and proximity to amenities.
  • Check for Ethnic Integration Policy (EIP) and Singapore Permanent Resident (SPR) quotas for the block/neighbourhood.
  • Attend viewings and inspect the flat thoroughly.
4

Negotiate Price & Obtain Option to Purchase (OTP)

  • Once you find a suitable flat, negotiate the purchase price with the seller.
  • The seller will grant you an OTP upon agreement. You'll pay an **Option Fee** (cannot exceed S$1,000) to the seller.
  • The OTP gives you the exclusive right to buy the flat within the Option Period (21 calendar days, including Saturdays, Sundays, and public holidays).

Request for Valuation by HDB

  • During the Option Period, if you intend to use CPF savings or a housing loan (HDB or bank) to finance the purchase, you must submit a "Request for Value" to HDB via the HDB Resale Portal to determine the flat's value. This is usually done the next working day after the Option Date.
  • The valuation will determine the basis for your loan amount and CPF usage. Any amount paid above the valuation is the Cash-Over-Valuation (COV), which must be paid in cash.
5

Exercise the Option to Purchase

  • If you decide to proceed after reviewing the valuation and securing your loan, you must exercise the OTP within the 21-day Option Period.
  • To exercise, you and the seller sign the Acceptance section of the OTP.
  • You will pay the **Option Exercise Fee** to the seller (cannot exceed S$4,000). The total Option Fee and Option Exercise Fee cannot exceed S$5,000.
6

Submit Resale Application to HDB

  • Both you (buyer) and the seller must submit your respective portions of the resale application through the HDB Resale Portal. This is usually done within a timeframe agreed upon in the OTP.
  • Pay administrative fees and upload necessary documents.
  • HDB will verify documents and assess eligibility.
7

Endorse Resale Documents & Pay Fees

  • Once HDB approves the application, you'll be invited to endorse various documents online via the HDB Resale Portal.
  • Pay remaining fees, including stamp duties (BSD and ABSD if applicable). Our Stamp Duty Calculator can help estimate these. Legal fees are also payable.
8

Attend HDB Resale Completion Appointment

  • HDB will schedule a Resale Completion Appointment.
  • At this appointment, legal ownership is transferred, the housing loan (if any) is disbursed, and you will receive the keys to your new flat.
  • Ensure all outstanding payments are settled.
9

Post-Completion

  • Arrange for utilities and move in.
  • If taking an HDB loan, you'll need to be covered under the Home Protection Scheme (HPS).
  • Start your monthly mortgage payments.

Important Note:

The HDB resale process involves specific timelines and procedures set by HDB. Always refer to the official HDB Resale Portal for the most current and detailed information. Engaging a property agent can also help navigate the complexities.