A Complete Guide to Buying an HDB Resale Flat in Singapore.pdf

A guide on the essential steps in purchasing an HDB resale flat in Singapore.

1. A Complete Guide to Buying an HDB
Resale Flat in Singapore
Buying an HDB resale flat is a practical option for many Singaporeans who want a home
without waiting years for a BTO completion. However, the process can feel overwhelming,
especially for first-time buyers. This guide breaks it down step by step.

Key Takeaways
• Eligibility: Check if you qualify under HDB’s schemes.
• Budgeting: Understand your grants, CPF usage, and loan options.
• Property Search: Shortlist flats based on your needs and finances.
• Financing: Choose between an HDB concessionary loan or a bank loan.
• Application: Follow the 11-step resale process with HDB.

Why Choose a Resale Flat?
• Immediate availability – no 3–4 year wait like with BTOs.
• Choice of location – select matured estates near MRT, schools, or parents.
• Grants available – families and singles may qualify for significant subsidies.
Alternative options include executive condos or private property, which offer more lifestyle
perks but cost substantially more.

Step 1: Check Eligibility
Eligibility is based on several schemes and criteria:
• Schemes: Public Scheme, Single Singapore Citizen Scheme, Joint Singles Scheme.
• Citizenship: At least one applicant must be a Singapore citizen or SPR. Two SPRs
must each have at least 3 years of residency.
• Age:
o Married applicants: 21+ years old.
o Singles: 35+ years old (exceptions apply: widowed, orphaned, single parents).
• MOP (Minimum Occupation Period): Sellers must meet the 5-year MOP before
selling.

Step 2: Understand Restrictions

2. • 15-Month Wait-Out Rule: Private property sellers under 55 must wait 15 months
before buying a resale HDB.
• Ethnic Integration Policy (EIP): Ensures balanced ethnic distribution in
blocks/neighbourhoods.
• SPR Quota: Limits the number of non-Malaysian SPR households per
block/neighbourhood.
• No Other Property Ownership: Buyers cannot own other HDB or private properties
(local/overseas).

Step 3: Budget & Housing Grants
Although there’s no income ceiling to buy resale flats, income affects grant eligibility:
• Family Grant: Up to $80,000.
• Enhanced Housing Grant (EHG): Up to $80,000, based on income.
• Proximity Housing Grant: Up to $30,000 if living with/near parents.
Example: A household with $7,000 income buying a 5-room flat near parents can receive
$95,000 in total grants.

Step 4: Decide Where to Buy
• Mature estates: Near MRTs, schools, shopping hubs.
• Non-mature estates: More affordable but less central.
• PLH flats: Prime Location Housing with stricter rules (10-year MOP, subsidy
clawbacks).
From 2024 onwards, flats will be classified as Standard, Plus, or Prime instead of
mature/non-mature.

Step 5: Choose Financing
Two main options:
• HDB Loan: Up to 80% financing; balance payable via CPF/cash.
• Bank Loan: Up to 75% financing; minimum 5% must be paid in cash.
Note: CPF usage and housing loan rules affect how much CPF you can use for
repayment.

3. Step 6: Apply for an HDB Flat Eligibility (HFE) Letter
The HFE Letter (effective from May 2023) replaces the old HLE letter. It states:
• Your eligibility to purchase.
• CPF housing grant amounts.
• Maximum loan amount (HDB or bank).
Application is via My Flat Dashboard using Singpass/Myinfo for streamlined processing.

Step 7: The HDB Resale Process (11 Steps)
1. Apply for HFE Letter
2. Assess your finances
3. Shortlist flats & secure Option to Purchase (OTP)
4. Confirm financing (HDB/Bank Loan)
5. Submit Request for Value (if using CPF or a loan)
6. Convert IPA to LO (Letter of Offer)
7. Submit resale application (buyer & seller)
8. Acknowledge documents & pay fees
9. HDB reviews & grants in-principle approval
10. Final approval by HDB
11. Attend resale completion appointment & collect keys
⏱ Timeline: Around 12 weeks from OTP to completion.

Frequently Asked Questions (FAQs)
1. What is the Minimum Occupation Period (MOP)?
• Standard flats: 5 years.
• Prime/Plus flats: 10 years.
2. Do I need an HFE letter?
Yes, it’s required before obtaining OTP and submitting resale application.
3. How do I finance my flat?
• HDB loan: 20% downpayment (CPF/cash).
• Bank loan: 25% downpayment (5% cash minimum).
4. How long does the resale process take?
Typically 12 weeks, excluding time spent searching for a flat.

4. Final Thoughts
Buying an HDB resale flat may seem complex, but with grants, financing options, and a clear
step-by-step process, it is very manageable. By preparing early and staying informed, you can
secure a home that meets both your financial capacity and lifestyle needs.
If you prefer a brand new HDB flat, check out our guide on how to buy an HDB BTO flat.
For more property resources, please visit Sg Home Investment.