Buying a flat in Singapore is complicated stuff.
Not impressed by the location of the latest BTO listings? Not eligible for a BTO flat? Or just too impatient to wait for one? Before you start looking for your alternative dream home, it’s best to familiarize yourself with the steps on purchasing resale flats in Singapore.
1. Check Your Eligibility
The first step is to check if you are eligible to purchase a resale flat. Simply head over to HDB’s eligibility check e-service to check your eligibility for both the resale flat and a HDB housing loan.
You’ll be surprised to find out that the criteria to purchasing a resale flat is much more lax than that of BTO flats.
2. Work Out The Finances
Once you’ve determined your eligibility, it’s time to plan out the finances. If you already have a flat or location in mind, you can gauge the average transaction price range of similar flats by visiting this link which is updated daily.
While you’re at it, you should also figure out the types and amounts of grants you’ll be able to receive. For first-time families who prefer a resale flat, you can expect up to $160,000 in housing grants, depending on your household income, the type of flat, and the extent to which the flat can last you and your spouse till 95 years old.
There are three grants available for resale buyers: (1) the Family Grant, (2) the Enhanced CPF Housing Grant, and (3) the Proximity Housing Grant (PHG).
To be eligible for this grant, you and your spouse need to be first-time buyers and your combined income ceiling must not exceed $14,000. If you’re applying together with more family members, the household income ceiling is capped at $21,000.
If you and and your spouse are both Singapore citizens, you can enjoy $50,000 for a 2 to 4 room flat and $40,000 for 5-room flat and above.
|4-room or smaller resale flats||5-room or larger resale flats|
Enhanced CPF Housing Grant
Eligible for first-time buyers, the Enhanced CPF Housing Grant (EHG) is provided on top of the CPF Housing Grant. The amount granted depends on your income and the extent to which the lease of your desired flat can last you till 95 years old. It is up to $80,000 for families, and up to $40,000 for singles.
|Average Monthly Household Income||Grant Amount|
|Not more than $1,500||$80,000|
|$1,501 to $2,000||$75,000|
|$2,001 to $2,500||$70,000|
|$2,501 to $3,000||$65,000|
|$3,001 to $3,500||$60,000|
|$3,501 to $4,000||$55,000|
|$4,001 to $4,500||$50,000|
|$4,501 to $5,000||$45,000|
|$5,001 to $5,500||$40,000|
|$5,501 to $6,000||$35,000|
|$6,001 to $6,500||$30,000|
|$6,501 to $7,000||$25,000|
|$7,001 to $7,500||$20,000|
|$7,501 to $8,000||$15,000|
|$8,001 to $8,500||$10,000|
|$8,501 to $9,000||$5,000|
Proximity Housing Grant
This grant is targeted to those who plan to purchase a resale flat to live with or near their parents or married child. Eligible families will receive a PHG of up to $30,000, while eligible singles will enjoy a PHG of up to $15,000.
|To live with parents/child||To live near parents/child (within 4km)|
Lastly, if you plan to purchase the resale flat using the HDB housing loan, then you might want to refer to the Resale Financial Plan to help you estimate and plan the crucial financial components of the purchase process.
3. Finding A Flat And Getting The Option To Purchase
Once you manage to find a resale flat that’s within your budget, you will need to first collect an OTP from the seller. This is a legal contract made between you and the seller which will grant you the right to purchase the property that you’ve selected. Keep in mind that you have 21 days to execute the OTP.
4. Request For Valuation From HDB
Once you’ve obtained the OTP, you will need to submit a Request for Valuation via the HDB website by the next working day. This will determine the value of the flat. Bear in mind that if the seller’s asking price exceeds the HDB valuation, then the difference will be paid in cash as Cash Over Valuation (COV).
5. Register On HDB’s Resale Portal
Finally, it’s time to register your intent to purchase a resale flat using HDB’s Resale Portal. This portal conveniently integrates all resale flat processes into a single online platform for both buyers and sellers and reduces the need for multiple appointments.
Keep in mind that the submission of the resale application for both you and your seller is within 7 days of either submission. That means if any one of you submits first, then the other party will have seven days to submit his or her application.
Simply log in with your Singpass account and the system will take care of the rest. There is no need for manual entry, the portal will automatically retrieve and populate your personal information using the government’s MyInfo service.
Do note that both the Option to Purchase and Request For Valuation document can be obtained through this portal. Successful applications will be followed by a sale completion appointment to finalise the paperwork that is needed.
Finally, It’s Time To Collect The Keys!
Once you’re all done with the paperwork, you can finally head down to the HDB Hub at Toa Payoh to collect the keys to your new home! As the entire HDB resale process takes approximately two months to execute, you should start to look into the available renovation options before key collection. That way, you can move in into your new home much faster.
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