Buying a HDB unit
1st Step – Check Your Eligibility
Register Your Intent to Buy
To start your buying journey, register an Intent to Buy by logging in to the HDB Resale Portal using your Singpass. When you register an Intent to Buy, you will receive an instant assessment of your eligibility for the purchase of a resale flat, housing grant(s) and an HDB housing loan.
Important notes:
- You will need a valid Intent to Buy before flat sellers may grant you an Option to Purchase (OTP).
- Your Intent to Buy is valid for 12 months. It must be valid when flat sellers grant you an OTP and when you submit the resale application.
Check your eligibility
You may use HDB e-Service to check if you are eligible to buy an HDB resale flat in a particular block or neighbourhood under Ethic Integration Policy (EIP) & Singapore Permanent Resident (SPR) Quota.
The EIP & SPR Quota is updated on the 1st of each month, and will apply to complete resale applications* submitted to us in the same month.
Important notes:
- When buying a HDB resale flat, you must ensure the household is within the EIP quota for the block and neighbourhood and if applicable, the SPR quota as well.
- The EIP quota applies for the purchase of an HDB resale flat. In addition, non-Malaysian SPR households must meet the SPR quota. You may be eligible to buy a flat if:
– After your flat purchase, the number of households of your ethnic group remains within the block and neighbourhood limits. In addition, for non-Malaysian SPR households, the number of SPR households will have to remain within the SPR quota
-You and the flat seller are of the same ethnic group and household citizenship
- A resale application is completed only when HDB receives both the buyers’ and sellers’ portions of the resale application and the necessary supporting documents.
2nd Step – Financing The HDB Purchase
Plan your finances and work out your budget before you search for a suitable home.
To work out a financial plan, consider the following:
- Payments that you need to make by using cash and CPF savings
- The amount of housing loan
- CPF housing grant(s)
You may use HDB calculators to estimate your finances and the amount of housing loan you may need for your flat purchase. Read financial planning for flat purchase for more tips on financing a flat purchase.
Housing Loan
After registering an Intent to Buy, you will be guided to apply for an HDB Loan Eligibility (HLE) letter, if you are eligible for one and intend to get a housing loan from HDB. You must have a valid HLE letter when flat sellers grant you an OTP and at the time of your application to buy the resale flat.
Housing loan from financial institutions (FIs)
If you intend to get a housing loan from a FI, you may proceed to look for a suitable flat that meets your budget and obtain an OTP from the sellers.
You must have a valid Letter of Offer before you may exercise the OTP.
Not taking a housing loan
If you do not require a housing loan, you may proceed to look for a suitable flat that meets your budget and obtain an OTP from the sellers.
3rd Step – Negotiate the HDB Purchase
Before negotiation, do your sums and use the Resale Flat Prices service to check the transacted prices for resale flats within the past 2 years. The data is based on registered resale applications, and is updated daily.
Prepare yourself what price you want to offer and be mindful of your budget taking into considerations that resale units may have unexpected renovation costs at times.
Always arm yourself with information and alternatives prior to negotiation with the seller. 1 major bargaining chip is to find out about the other listings within the vicinity about other sellers’ asking price and the condition of the unit.
Important notes:
- DO NOT rush in the purchase of the property. Give yourself time to look around and assess your choices.
- Resale units are bound to have fair wear and tear. Take your time to inspect it thoroughly and ask questions before making the offer.
- Arrange to view at different timings to understand weather (west sun etc) and neighbour condition.
- Request the sellers to produce evidence of their flat ownership and eligibility to sell the flat before you enter into the option to purchase (OTP).
Documents such as a printout from the flat sellers’ My HDBPage at HDB InfoWEB, property tax statement, town council statement, or title deed are examples of documents that can confirm ownership of the flat.
4th Step – Option to Purchase
Once you have decided on a flat and agreed on a price for it, you may proceed to obtain an Option to Purchase (OTP) from the sellers.
If you intend to get an HDB housing loan, you need to have a valid HDB Loan Eligibility (HLE) letter from HDB before the sellers may grant you an OTP. If you intend to get a housing loan from a financial institution, you must have a valid Letter of Offer (LO) before you exercise the OTP.
You and the sellers must use the HDB-prescribed OTP for the resale transaction. Any other agreements and/ or supplementary agreements relating to the sale or purchase of the flat are not valid under the Housing and Development Act.
Print only 1 copy of the OTP as each form has a unique serial number. You must state the serial number of the OTP when you submit a resale application to HDB.
The OTP is a legally binding contract between you and the flat sellers. Read the Important Notes of the OTP and the Terms and Conditions of Resale carefully before entering into a contract.
Deposit to sellers
You have to pay a deposit to the sellers, comprising the Option Fee (between $1 to $1,000) and Option Exercise Fee (where the total of the option fee and option exercise fee must not exceed $5,000), which are payable at different points during the OTP process. You may negotiate the amount for the Option Fee and the Option Exercise Fee with the sellers, and it will form part of the resale price.
Pages to Fill in the OTP
The sellers must fill in these sections in the OTP:
Page 1 of OTP
- Option Date
- Flat address
- Purchase price (resale price of the flat)
- Option Fee (between $1 to $1,000)
- Option expiry date (21 calendar days from the option day, including Saturdays, Sundays and Public Holidays. For e.g., if the sellers grant an Option to you on 1 April, the Option will expire on 22 April at 4pm)
- Names (as in NRIC) and NRIC numbers of all the sellers and buyers
Page 2 of OTP
- Clause 6.1(c): Option Exercise Fee- An amount, which when including the Option Fee, does not exceed $5,000
Page 4 of OTP
- Clause 12: Number of days from the date of exercising the Option that you and the sellers have agreed to submit the resale application to HDB
Page 8 of OTP (top half)
- Option Date
- Flat address
- All sellers must sign on the OTP
- A witness may sign on the OTP (seller’s salesperson or any person, aged 21 years or above, and not involved in the resale transaction)
Page 9 of OTP (optional)
- Inventory list of the flat
Page 10 of OTP (optional)
- Authorisation for another person to receive the Acceptance of the buyers when they exercise the OTP
Proceed with flat purchase: Exercise the OTP
To proceed with the flat purchase, you must exercise the OTP during the Option Period. If you are taking a housing loan or using your CPF savings to pay for the flat, ensure that the flat value* is available before you exercise the OTP.
* Read request for value for more information.
Housing loan from HDB
If you are taking a housing loan from HDB, ensure that you have a valid HDB Loan Eligibility (HLE) letter.
Housing loan from a financial institution (FI)
If you are taking a housing loan from a FI, ensure that you have a valid Letter of Offer (LO). The date of issue of the LO must be on or before you exercise the OTP.
Signing and returning the OTP
To exercise the Option, you must sign on the OTP and return it to the sellers:
OTP Page 8 (Bottom Half)
- You and all your co-buyers must sign on the “ACCEPTANCE” section
- A witness may sign on the OTP (your salesperson or any person, aged 21 years or above, and not involved in the resale transaction)
Important notes:
- Once the sellers have granted the OTP to you, they cannot grant another OTP to other buyers until the OTP granted to you has expired.
- The OTP is valid for 21 calendar days from the date OTP is signed The Option Period is 21 calendar days (including Saturdays, Sundays, and Public Holidays). It is given to you by the sellers, from the date of granting the OTP (refer to Step 2).
- If you do not wish to proceed with the purchase, you need not take any further action. Upon expiry of the OTP, you will forfeit the Option Fee.
5th Step – Submit the HDB Resale Application & Resale Fees
After you have exercised the OTP, you and the sellers must decide when to submit the respective portions of the resale application to HDB.
You and the sellers must both submit the respective portions of the resale application separately within both timeframes:
- Within the agreed number of days as stated on page 4 of the OTP, and
- Within 7 days of each other’s submission
A resale application is only complete when HDB has received both you and the seller’s respective portions of the resale application and the necessary supporting documents.
Read about submitting a resale application and what you need to do before the application is accepted and approved.
Buyers and sellers must submit their respective portions of the resale application to HDB via the HDB Resale Portal. You will each pay an administrative fee (inclusive of GST) depending on the flat type.
RESALE APPLICATION ADMINISTRATIVE FEE*
(PAYABLE BY BUYER AND SELLER)
| 1 and 2-room | $40 |
| 3-room and bigger | $80 |
6th Step – HDB Acceptance and Approval
After HDB receives the complete resale application and supporting documents from you and the sellers, HDB will verify both parties’ eligibility and review the documents. If the application and documents are in order, you and the sellers will be notified of HDB’s acceptance of the application via SMS or email.
When HDB accept the resale application, Technical executives from the HDB branch will make arrangements to inspect the flat.
You as the buyer must endorse after the application have been accepted and make payment for all the required fees.
HDB will then grant the approval of the resale transactions within 2 weeks after endorsements of documents and payments done by both parties.
Last Step – Resale Completion
The Resale Completion Date is scheduled about 8 weeks from the date of HDB’s acceptance of the resale application.
You may log in to the HDB Resale Portal to view the completion letter, which provides information on what you need to prepare for the appointment, such as the documents required for the appointment.
If you have appointed HDB as solicitors for the purchase of the flat, you must attend the resale completion appointment in person at the HDB Hub.
Find out what you need to prepare before the resale completion appointment.
Buying a Private Property
1st Step – Check Your Eligibility
Get In-Principle Loan Approval First
IPA is an agreement between you and the bank that you intend to borrow from. This agreement consists of two main details.
- The loan amount you are eligible for
- The length of your loan tenure
To guard yourself against the risk that you may end up losing your option fee because you are unable to secure the loan required, it’s always prudent to get In-Principle Approval (IPA) first before you make any formal offer.
Important notes:
- IPA doesn’t make a final confirmation that the loan will be approved but it is essential before you start your journey to purchase your dream home.
Use of CPF for private residential properties under the CPF Housing Scheme
All CPF members who are eligible to buy a private property are eligible to use their CPF savings. To be eligible to use CPF, your age plus the remaining lease of the flat must be at least 80 years at the time of purchase.
CPF withdrawal limits
- The use of CPF savings towards the private residential property is subject to the CPF housing limits.
- For private residential property bought:
- before 10 May 2019 with a remaining lease of at least 60 years at the time of purchase; or
- from 10 May 2019 with a remaining lease that can cover the youngest owner using CPF for the property till age 95,
the maximum amount of CPF that can be used towards the private residential property is as follows.
| Date of property purchase | Maximum amount of CPF that can be used |
| Before 1 September 2002 | Up to the lower of the purchase price or the valuation price of the property at the time of purchase, if you cannot set aside the Basic Retirement Sum (“BRS“)
Up to the housing loan taken to buy the property, if you can set aside the BRS |
| From 1 September 2002 | Up to the lower of the purchase price or the valuation price of the property at the time of purchase, if you cannot set aside the BRS
Up to an additional 20% of the lower of the purchase price or the valuation price of the property at the time of purchase, if you can set aside the BRS |
2nd Step – Negotiate the Purchase
Before negotiation with the seller, do your homework on what is the transacted price of the surrounding properties using SRX x-value pricing or URA to assist you in making an informed decision on what price to buy.
Prepare yourself what price you want to offer and be mindful of your budget taking into considerations that resale units may have unexpected renovation costs at times.
Always arm yourself with information and alternatives prior to negotiation with the seller. 1 major bargaining chip is to find out about the other listings within the vicinity about other sellers’ asking price and the condition of the unit.
Important notes:
- DO NOT rush in the purchase of the property. Give yourself time to look around and assess your choices.
- Resale units are bound to have fair wear and tear. Take your time to inspect it thoroughly and ask questions before making the offer.
- Arrange to view at different timings to understand weather (west sun etc) and neighbour’s condition.
- Request the sellers to produce evidence of their flat ownership and eligibility to sell the flat before you enter into the option to purchase (OTP).
3rd Step – Option To Purchase
Offer To Purchase
At this point as a buyer, you can choose to sign either the Offer To Purchase or the Option To Purchase.
The Offer To Purchase is a legally non-binding document which is a formal letter from you (the buyer) to the seller, expressing a serious interest in the property. This is usually prepared for private properties only.
In this document, the content will state the terms of purchase such as property address, offered price, duration of the option period, date of completion of transaction etc and will usually last for 3 days. Once you accept the Offer, you will then issue the Option To Purchase.
Actually as a buyer, you can choose to skip the Offer To Purchase and sign the Option To Purchase right away. However, by drafting an Offer To Purchase will help to state the terms and conditions into having a mutual agreement between you and the seller. This helps to facilitate the process without any conflicts.
Option To Purchase
An Option to Purchase is the actual, legally binding document for purchasing a property. You will issue a cheque 1% of the purchase price in order to exchange for the OTP from the seller as the Option Fee to the seller. Once the seller have granted the Option to you, he cannot grant another Option to another buyer until the Option granted expires.
Once the seller have granted the Option to you, he cannot grant another Option to another buyer until the Option granted expires.
The Option period is usually 14 calendar days (including Saturday, Sunday and public holidays) from the date of granting the OTP. It expires at 4pm on the 14th calendar day.
Within these 14 days, if you wish to proceed with the purchase of the property, you have to appoint a law firm to act in your purchase and get your bank loan signed.
Exercise the OTP within the Option Period at your law firm to proceed with the purchase.
To exercise the Option, you and your co-buyers must sign on the “ACCEPTANCE” section in the OTP.
When you exercise the OTP at your appointed law firm, you have to pay the Option Exercise Fee (4% of sale price) in cheque, written to the seller’s law firm -CVY.
The Option Fee (1%) and Option Exercise Fee (4%) forms the deposit (5%).
When you have accepted the bank loan, the bank will assign a valuer to visit your purchase property. This is part of the formality of the bank when disbursing loan to buyer. This valuation cost is borne by you.
Important notes:
If you do not wish to proceed with the purchase, your 1% Option Fee will be forfeited.
4th Step – Accept Letter of Offer from Bank & Appoint Law Firm
If you are taking a mortgage loan from a bank, please check with the bank whether the law firm that you are using is under the bank’s panel of lawyers. This is to prevent having to pay 2 sets of legal fee in your purchase of your property.
After you have received the OTP from the seller, you have to appoint a law firm to act for you in the conveyancing of the property and to exercise your OTP at the law firm.
Your appointed lawyer will liaise with your bank to disburse your mortgage loan and act for you throughout your property purchase until completion.
Last Step – Completion
The law firm will make another appointment with you before the Completion date for you to pay the remaining amount (Purchase Price – 5% Deposit – CPF usage – Bank Loan) of your purchase.
Once you’ve completed the final payment and your home loan has been disbursed, it’s time for the moment you’ve been waiting for – collecting the keys to your new home.
The completion date will be approximately 8-12 weeks (depending on your agreement with the seller from the date you exercised the Option). Your lawyer will inform you to collect the keys on this date.