The Complete Guide to Buying an HDB Resale Flat in Singapore: Everything You Need to Know

Table of Contents

1. Eligibility Essentials

2. Applying for an HDB Flat Eligibility (HFE) Letter

3. Choosing the Right Resale Flat

4. Financial Preparation and Loan Options

5. Option to Purchase (OTP) and Exercising It

6. Resale Application Submission

7. Endorsing Resale Documents and Making Payments

8. Completing the Sale and Collecting Keys

9. Minimum Occupation Period and Other Ownership Rules

Step 1: Eligibility Essentials

Before diving into the resale market, make sure you’re eligible to buy an HDB resale flat. Singapore Citizens and Singapore Permanent Residents (PRs) are eligible, with different schemes available based on your household type.

Key Eligibility Schemes:

• Public Scheme: For families or singles purchasing with family members.

• Fiancé/Fiancée Scheme: For couples planning to get married within three months of the purchase.

• Single Singapore Citizen Scheme: Available to citizens over 35 years old.

• Non-Citizen Family Scheme: For citizens buying with immediate family members who are PRs or foreigners.

Income Ceiling for Housing Grants:

The income ceiling varies by grant:

• Enhanced CPF Housing Grant (EHG): Up to $9,000 in household income.

Note: For full information on HDB Grants, check out our full guide on HDB Housing Grants

Step 2: Applying for the HFE Letter (Your Eligibility Proof)

The HDB Flat Eligibility (HFE) letter is your green light for buying a resale flat and outlines your loan eligibility and grant options. Apply for this essential document via the HDB Flat Portal using your Singpass.

1. Log into the HDB Flat Portal using Singpass.

2. Submit necessary documents like income proof, identity documents, and any prior property ownership details.

3. Receive the HFE letter within about a month.

Step 3: Choosing the Right Resale Flat

The resale market offers plenty of choices, from different flat sizes to locations in mature and non-mature estates. Factors to consider:

• Location: Proximity to work, family, and amenities like schools or MRT stations.

• Flat Age: Older flats often have lower prices, but consider the remaining lease.

• Flat Size: Resale flats come in 2- to 5-room configurations, ideal for different family sizes.

Step 4: Financial Preparation and Loan Options

Loan Options

There are two main loan options for HDB resale flats: an HDB loan or a bank loan. Each has distinct terms, so choose based on your financial situation.

Additional Costs to Consider

• Stamp Duty: Calculated as 1% for the first $180,000, 2% for the next $180,000, and 3% thereafter, based on purchase price or market value (whichever is higher).

• Legal Fees: Typically between $2,000 and $3,000, depending on whether you engage HDB’s or a private solicitor.

Example: For a $500,000 resale flat, stamp duty would be $9,600, which Alex and Sarah can pay with CPF or cash.
For the full guide on Stamp Duties, visit our Stamp Duty Guide here

Step 5: Option to Purchase (OTP) and Exercising It

Once you’ve found your ideal flat, request an Option to Purchase (OTP) from the seller, which locks in your right to purchase the flat at an agreed price.

Key Steps:

1. Option Fee: Pay an option fee, usually $1,000, to the seller.

2. Exercise Period: You have 21 days to decide if you want to go through with the purchase. Pay Exercise fee, normally $4,000, to the seller.

Step 6: Resale Application Submission

After signing the OTP, both you and the seller submit a joint resale application via the HDB Resale Portal.

1. Submit the application and required documents.

2. Pay administrative fees: Typically around $80.

3. Wait for HDB’s approval: This takes about 8 weeks, during which HDB verifies eligibility and the validity of the documents.

Step 7: Endorsing Resale Documents and Making Payments

Once HDB accepts your application, they’ll prepare documents for endorsement, which you’ll review and sign on the My Flat Dashboard. You’ll also need to make payments for:

• Legal Fees: Payable via AXS or other methods.

• Initial Payment: Includes down payment, stamp duty, and any other fees based on the financing plan.

Example: Alex and Sarah choose HDB to handle their legal work and pay legal fees of around $2,000 via AXS within the given deadline.

Step 8: Completing the Sale and Collecting Keys

After document endorsement and payment completion, HDB will schedule a resale completion appointment. At this appointment:

• Balance payment: Any remaining costs must be settled.

• Key collection: Officially marks the completion of the purchase, making the flat yours.

Step 9: Living in Your HDB Resale Flat - Minimum Occupation Period (MOP)

Once you’ve moved in, a five-year Minimum Occupation Period (MOP) applies, during which you cannot sell or lease the entire flat. However, renting out rooms may be permitted under certain conditions.

Example: Alex and Sarah live in the flat for five years, after which they decide to upgrade. Having fulfilled the MOP, they can now sell or fully rent out their flat.

We hope this guide has been helpful!

Buying an HDB resale flat is a structured but rewarding process, opening the door to immediate homeownership. By understanding each step and planning ahead, you’re setting the foundation for both a new lifestyle and future financial growth.

At HomeAsset.sg, we’re here to make your property journey clearer and easier to navigate. Whether it’s your first home or your next investment, we provide expert insights to help you every step of the way. Start your HDB resale journey today—let’s make your home dreams a reality.