1. Check Eligibility 2. Plan finances HDB concessionary housing loan can be applied to pay for the purchase of resale HDB. To use the HDB concessionary housing loan, you have to follow the below terms and conditions.
HDB Loan Terms and Conditions REPAYMENT
The monthly installment amounts will be determined by the HDB based on the actual loan amount issued. It will comprise the principal amount and the interest payable. Interest is payable from the date the loan is issued. Payment of the first monthly installment will start on the first day of the second month following the month in which the housing loan or any part of it is issued. Thereafter, it will be due and payable on the first day of every month until the loan is fully redeemed. The monthly installment can be paid by CPF savings and/or cash.
The outstanding loan together with interest will immediately become due and payable to the HDB if you default in the payment of any one or more monthly installments on the due dates or in paying any other monies under the loan terms. A late payment charge will also be imposed based on the outstanding installment at the end of the month. Any payment received subsequently will first be used to settle the outstanding late payment charges, followed by other outstanding charges.
If you are paying the monthly mortgage installments partially or fully by cash, you have to submit the duly completed GIRO application form before the HDB housing loan is issued.
After the loan has been fully issued by HDB, you can make partial or full capital repayment (over and above the monthly instalments), using CPF savings and/or cash, by giving one month's prior written notice. The reduction in outstanding loan will take effect within one month from the date of receipt of the said application and upon receipt of payment.
Notwithstanding the above, HDB reserves the right not to accept any such payment or to accept such payments only if it is of a sum of not less than a minimum sum as may be determined periodically by the HDB at its discretion. For redemption of loan, you have to pay the whole of the principal sum and all other monies due including interest up to the date of payment.
USE OF CPF SAVINGS
If you are taking an HDB housing loan to buy or take over a flat with remaining lease of at least 60 years, all the available savings in your CPF Ordinary Accounts have to be used for the purchase/transfer. You may set aside an amount required for payment of stamp, registration and conveyancing fees and CPF Home Protection Insurance Premium (if applicable).
If you are taking an HDB housing loan to buy or take over a flat with remaining lease of less than 60 years, the amount of CPF funds that can be used and the HDB housing loan that can be taken up will be reduced or disallowed.
RESTRICTION ON APPLICATION FOR ANOTHER HDB HOUSING LOAN
If your income was used for credit assessment to obtain an HDB housing loan, you will not be able to apply for another housing loan from the HDB for 30 months from the effective date of purchase/transfer.
VALUATION REPORT FOR PURCHASE OF RESALE FLATS
If you are buying a resale flat, you must obtain a valid valuation report from the HDB's Panel of Valuers through the HDB and submit it with the resale application.
FIRE INSURANCE
You have to insure the flat with a fire insurance policy from an HDB's appointed insurer. If the flat is still under construction, you have to take up the fire insurance before or during the appointment to collect the keys. You also have to renew the fire insurance and keep the flat insured as long as the HDB housing loan is not fully repaid.
To apply for HDB concessionary housing loan, it has to first obtain an HDB Loan Eligibility (HLE) letter.
HDB Loan Eligibility(HLE) HLE letter states how much loan you are allowed to borrow from HDB. The validity period of the HDB Loan Eligibility (HLE) is 6 months from the date of approval. To apply for HLE, you are required to provide below necessary documents via online services.
Identity Cards/Passports/Visit Pass of applicants/occupiers
Proof of Income
Name and address of employers for employed applicants/occupiers and unemployed applicants/occupiers who have been unemployed for fewer than 3 months
Details of ownership of private property (if applicable)
Number of HDB concessionary housing loan(s) taken by applicants/occupiers
Details of financial commitments such as vehicle loan, renovation loan etc
Details of total cash proceeds received from the disposal of applicants' and occupiers' (spouses/fiancés/fiancées of applicants) last HDB flats (if any)
SingPass passwords of all applicants and occupier spouses
The normal processing time is less than two weeks.
Resale HDB Payment Main Payment The main payments you need to make for a resale flat purchase are as follows:
Deposit to seller (a maximum of $5,000, paid in 2 stages: the option fee, and the deposit)
Granting of OTP: 　$1 to $1,000 is paid as the option fee.
Exercising of OTP: A deposit of up to $4,999 (cap of $5,000 minus the option fee amount) is paid.
Cash payment for balance purchase price (if applicable)
The cash payment for balance purchase price only needs to be paid when the resale price is higher than the market valuation.
It is the difference between the resale price and the market valuation.
Initial payment
10% of the purchase price
Additional Resale Costs and Fees When you buy an HDB resale flat, you should also take into account the costs and fees that you may need to pay. These charges are on top of the resale price of the flat:
Resale application administrative fee (S$80 for 3 room and bigger)
Valuation fee (S$199.25 for 3 room and bigger)
Insurance
If you are taking a housing loan from HDB, you must purchase a fire insurance policy from our appointed insurer, ETIQA.
You can get more details on HDB fire insurance from the ETIQA website, or through the ETIQA enquiry line: 6331-9253.
Administrative fee for Temporary Extension of Stay by Flat Sellers
If you agree to the seller’s request to extend their stay temporarily in the resale flat, the administrative fee payable to HDB is $20
Legal fees
For breakdown of legal fees, refer to the HDB page http://www.hdb.gov.sg/cs/infoweb/residential/buying-a-flat/resale/costs-and-fee
Cash Component Payment You must use cash for the following payments:
Deposit to seller
Part of the initial payment (if you take a bank loan, or have insufficient CPF savings)
Amount not covered by CPF savings and eligible housing loan amount
3. Purchase Procedure When starting looking for a suitable resale flat, the below HDB website can be used to check the past year’s resale price.http://services2.hdb.gov.sg/webapp/BB33RTIS/BB33PReslTrans.jsp
1. Receive option to purchase from the seller After you and the flat seller agree on the resale flat price, the seller (and their salesperson, if any) is required to fill up a standard HDB option to purchase (OTP) form and hand it to you. In exchange, you need to pay a negotiable option fee to the seller. This option fee can range from $1 to a maximum of $1,000.
After you have signed the OTP, the flat sellers have entered into a binding contract to sell their flat to you. They are not allowed to grant another OTP to another buyer unless you choose not to exercise your OTP within the 21 days i.e. the OTP granted to you has expired.
For more details of OTP, refer to http://www.hdb.gov.sg/cs/infoweb/residential/buying-a-flat/resale/option-to-purchase
2. Request a valuation report Apply for a valuation of the flat by the next working day after you have been granted the OTP.
You will need a valid valuation report if you are:
Taking an HDB loan;
Taking a housing loan from a bank;
Using CPF funds to buy the flat or service monthly loan instalments.
The valuation report will be used by the HDB, the CPF or your bank to calculate:
How much you can withdraw from your CPF savings;
How much housing loan can be granted to you; and
The minimum cash payment you must make.
Only flat buyers or their salespersons can submit a request for valuation. The request can only be submitted via the e-Resale service by the next working day after the sellers have granted the buyers an Option to Purchase (OTP).
To submit the valuation request, you will need the following information:
Resale flat address
Name and NRICs of all flat buyers
Requestor’s email address
OTP details (option date, resale price and OTP serial number)
Scanned copies of Page 1 and 8 of the OTP
Flat owner’s details (name, NRIC, contact number, and email address)
For more details on valuation, refer tohttp://www.hdb.gov.sg/cs/infoweb/residential/buying-a-flat/resale/flat-valuation.
3. Complete the resale checklist for buyers If you decide to go ahead with the purchase, you must complete or endorse the resale checklist for buyers before you exercise the OTP.
For more details on the checklist, refer tohttp://services2.hdb.gov.sg/webapp/BB24ResaleChecklistBS/BB24SHome
4. Exercise option to purchase Sign the OTP within 21 calendar days. After you have signed the OTP, you may hand it to the flat seller or their salesperson. You must pay a deposit to the flat seller. The option fee you paid previously and this deposit must not add up to more than $5,000
5. Submit the resale application You and the flat seller must submit your resale applications within 7 days of each other.
Your resale applications can be submitted through these two systems. (You need not use the same system as the seller)
e-Resale: For buyers and sellers who have not engaged the services of a salesperson, and for salespersons to submit applications on behalf of buyers or sellers. 　　
Estate Agent Toolkit: For salespersons whose estate agents have signed up for the Estate Agent Toolkit to submit applications on behalf of buyers or sellers.
6. Attend two appointments