Guide to Buying Resale HDB Flats

By Lin Zhiqin

/ The Edge Property |

June 10, 2016 12:00 PM SGT

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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 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. If you are 35 years old or above Your spouse must have a Visit Pass or Work Pass . 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 EIP and SPR quota , 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 neighborhood and surroundings

Talk to the neighbors 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 apply for a valuation report 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

Complete resale checklist for buyers

The resale checklist 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

Submit resale application

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 book a first appointment at HDB

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

Source: HDB, CEA, The Edge Property

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