Guide to Buying Resale HDB Flats

By
/ The Edge Property
|
June 10, 2016 12:00 PM SGT
HDB resale process
  • Buyers of resale HDB flats are subject to certain eligibility conditions based on citizenship, age, family nucleus, Ethnic Integration Policy (EIP) and Singapore Permanent Resident quota.
  • There is no income ceiling for buying a resale HDB flat but there are income ceilings for CPF housing grants and HDB housing loans.
  • Applicants and occupiers who own a HDB flat must dispose of the existing flat within 6 months of the resale flat purchase.
  • Applicants and occupiers who own a private property:
  • must dispose of all private properties before or within 6 months of the resale flat purchase
  • are not eligible for a CPF housing grant or a HDB housing loan
Ethnic Integration Policy (EIP) and Singapore Permanent Resident (SPR) quota
The EIP ensures a balanced mix of the various ethnicity in HDB towns, blocks and neighbourhoods. It applies to all buyers.
The SPR quota ensures that SPR households can better integrate into the local community. It applies to non-Malaysian SPR households, where no buyer is Singapore citizen or Malaysian SPR.
To fulfill the EIP and SPR quota, the buyers’ household must
  • fall within the block/neighbourhood’s ethnic and SPR limits
  • be of the same ethnic group and household citizenship as the seller
Use HDB e-service to check eligibility
Eligibility schemes
Buyers must qualify under one of the following schemes to buy a resale HDB flat
  • Public scheme
Criteria
Details
Citizenship
You must
  • Be an SC or SPR
  • Include at least 1 listed occupant who is an SC or SPR
  • SPR household (i.e. a SPR household with no SC owner): All SPR owners and essential occupiers will have to wait 3 years from the date of obtaining SPR status before they can buy a resale flat
Age
21 years old or above
Family nucleus
You must form a family nucleus with 1 of the following groups. Your:
  • Spouse and children
  • Parents and siblings
  • Children under your legal custody, care and control (for widowed/ divorced persons)
  • Fiancé/fiancée scheme
Criteria
Details
Citizenship
You and your fiancé or fiancée must be either:
  • SC or SPR
  • SPR household (i.e. a SPR household with no SC owner): All SPR owners and essential occupiers will have to wait 3 years from the date of obtaining SPR status before they can buy a resale flat
Age
21 years old or above
Family nucleus
Your fiancé or fiancée must be listed in the application as either:
  • A co-applicant (if 21 years old or above)
  • An occupant
Note: Special conditions apply for fiancé or fiancée below 21 years old
Special conditions
You and your fiancé or fiancée must:
  • Register your marriage with the Registry of Civil Marriages or Registry of Muslim Marriages
  • Submit your marriage certificate to us within 3 months from resale completion date
If applying for CPF Housing Grant
  • You must submit your marriage certificate on or before the resale completion date
Consent of parents
  • If your fiancé or fiancée is between 18 and 21 years old, his/ her parents must agree to the purchase.
Special Marriage Licence
  • If your fiancé or fiancée is below 18 years old, you need to apply for a Special Marriage Licence from the Ministry of Social and Family Development and submit it to us for verification.
Divorcees are required to produce the following for verification:
  • Interim Judgment (previously known as Decree Nisi)
  • Order of Court
  • Final Judgment (previously known as Decree Nisi Absolute)
  • Single Singapore citizen scheme
Criteria
Details
Citizenship
You must be an SC
Age
  • Unmarried or divorced: 35 years old or above
  • Widowed or an orphan: 21 years old or above
Special conditions
For orphans:
  • At least one of your deceased parents must have been an SC or SPR
  • If you are below 35 years old, you must not have another sibling who is below 35 years old buying/ owning another flat under the:
    • ​Orphans Scheme
    • Single Singapore Citizen Scheme
    • Joint Singles Scheme
  • Joint singles scheme
Criteria
Details
Citizenship
You and all the co-applicants must be SCs
Age
  • Unmarried or divorced: 35 years old or above
  • Widowed or an orphan: 21 years old or above
Special conditions
  • The flat must be bought jointly, i.e. each single SC must be listed as a co-applicant
  • For orphans
    • At least one of your deceased parents must have been an SC or SPR
    • If you are below 35 years old, you must not have another sibling who is below 35 years old buying/ owning another flat under the:
      • Orphans Scheme
      • Single Singapore Citizen Scheme
      • Joint Singles Scheme
  • Non-citizen spouse scheme
Criteria
Details
Citizenship
You must be an SC
Age
If you are 21 years old or above
  • Your spouse must have a
  • or
  • . The pass must be valid for at least 6 months and valid at the time you submit your application to buy a resale flat.
If you are 35 years old or above
  • Your spouse must have a
  • or
  • . The pass can have a validity period of less than 6 months. However, it must be valid at the time you submit your application to buy a resale flat.
Note: If the Visit Pass or Work Pass expires during the transaction to buy a resale flat, it must be renewed and valid by the time of your resale flat purchase completion date.
Family nucleus
Your non-citizen spouse must be listed in the application as an occupier
  • Non-citizen family scheme
Criteria
Details
Citizenship
You must be an SC
Age
21 years old or above
Family nucleus
You must form a family nucleus with 1 of the following groups:
  • Your parents and siblings (if any)
  • Children under your legal custody, care and control (for widowed/ divorced persons)
At least 1 parent/ child must have a valid Long Term Visit Pass or Work Pass. The pass must be valid for at least 6 months and valid at the time you submit your application to buy a resale flat.Note:If the Visit Pass or Work Pass expires during the transaction to buy a resale flat, it must be renewed and valid by the time of your resale flat purchase completion date.
  • Orphans scheme
Criteria
Details
Citizenship
You must:
  • Be an SC
  • Include at least 1 unmarried SC or SPR sibling as a co-applicant or occupant in your application
Age
21 years old or above
Special conditions
  • Your application must comprise yourself (an unmarried orphan) and your unmarried sibling(s)
  • At least one of your deceased parents must have been an SC or SPR
  • If you are below 35 years old, you must not have another sibling who is below 35 years old buying/ owning another flat under the:
    • Orphans Scheme
    • Single Singapore Citizen Scheme
    • Joint Singles Scheme
  • Conversion scheme
  • You can buy 2 adjoining 3-room or smaller flats, or buy the 3-room or smaller flat that is adjoined to your currently owned 3-room or smaller flat
Criteria
Details
Citizenship
You must:
  • Be an SC or SPR
  • Include at least 1 listed occupant who is an SC or SPR
Age
21 years old or above
Family nucleus
You must form a family nucleus with 1 of the following groups:
  • Your spouse and children (if any)
  • Your parents and siblings (if any)
  • Children under your legal custody, care and control (for widowed/ divorced persons)
EIP and SPR quota
  • Option 1 (Buy 2 adjoining 3-room or smaller flats)
    • In line with the
    • , you will need to check that you are within the proportion/ limit for the block/ neighbourhood
  • Option 2 (Buy the 3-room or smaller flat that adjoins your currently owned 3-room or smaller flat)
    • No EIP/ SPR quota restriction
  • Selecting your dream home
    • Consider the qualities your dream home should possess, such as location, amenities, facilities and design
    • Shortlist the towns and available listings that fit your requirements. Consider engaging a real estate salesperson (property agent) who can assist you in making your selection and handling the paperwork
    • Check that the salesperson is registered with the Council for Estate Agencies (CEA)
    • Visit the shortlisted units to learn more and zoom in on your dream home
    • Take a look at the neighbourhood and surroundings
    • Talk to the neighbours if you have the chance. They can give a more unbiased view compared to the seller and salesperson
    • Take advantage of this Council for Estate Agencies guideline in the Professional Service Manual- “When asked by a buyer or through his salesperson, the seller’s salesperson must find out from the seller and convey to the buyer or the buyer’s salesperson information on the property, such as loan shark harassment, bankruptcy issues, recent deaths from unnatural causes, and defects such as spalling concrete and water leakages.”
    Procedure for purchase
    • Check eligibility under the eligibility schemes
    • Plan finances
    • Buyers of HDB flats can finance their purchase using a combination of the following:
    • Savings
    • CPF savings
    • CPF housing grants
    • HDB concessionary housing loan or Bank loan
    • Buyers should apply for a HDB loan eligibility letter (HLE) or bank housing loan Approval-in-Principle (AIP) at this stage to find out the amount they can borrow
    • Select your dream home
    • Check if you fulfill the EIP and SPR quota
    • Receive Option to Purchase (OTP)
      The
      standard HDB OTP
      must be used
    • After agreeing to a price, seller gives buyer the completed and signed OTP in exchange for an Option fee of up to $1,000
    • The OTP is valid for 21 calendar days, during which the flat is reserved for the buyer
    • Request a valuation report
    • Buyers or their salesperson must
    • by the next working day (Monday to Saturday) after seller grants OTP
    • A valid report is required for:
    • HDB housing loan
    • Bank housing loan
    • Using CPF to pay for the flat or monthly loan instalments
    • HDB and CPF board will use the report to calculate:
    • How much CPF savings can be used
    • The amount of housing loan
    • Minimum cash payment required
    • The
    • must be completed before exercising the OTP
    • Exercise OTP
    • Buyer must sign the OTP within 21 calendar days and pay a deposit to the seller of up to $5,000, less the Option fee paid
    • A binding contract for the sale and purchase of the flat is formed upon exercise of the OTP
    • The Option fee will not be refunded if the buyer does not exercise the OTP
      Both buyer and seller must
      submit their resale applications
      within the number of days agreed upon on page 4 of the OTP
    • Both buyer and seller must submit their resale applications within 7 days of each other
    • A valid HLE or letter of offer from a bank is required if buyer is taking a housing loan
    • Book and attend first appointment
    • The second party between buyer and seller to submit their resale application will
    • Both buyer and seller must attend the first appointment
    • Second appointment
    • If the resale application is approved, HDB will schedule a second appointment with the buyer and seller 6 to 8 weeks after the first appointment
      The sale and purchase of the flat is completed at the second appointment
    • The sale and purchase of the flat is completed at the second appointment
    Source: HDB, CEA, The Edge Property