BACKGROUND
- Resale HDBs are HDB flats currently owned by someone else. They have been lived in for at least the Minimum Occupation Period (MOP) of usually five years.
DIFFERENCES BETWEEN RESALE FLATS & NEW FLATS (BTO/SBF)
- New flats are sold at a subsidised price while resale flats' prices are negotiated between you and the seller.
- New flats are mostly located in non-mature estates while resale flats are put up for sale in all locations.
- New flat launches are held periodically, and applicants apply directly to HDB for a flat while resale flats can be purchased from the open market any time.
- New flats have a limited pool of CPF grants available while resale flats have a lot more CPF grants available.
CHECK ELIGIBLITY
- Check which HDB Eligibility Schemes, CPF Grant(s) & HDB Payment Schemes you are eligible for. There are many more grants available for first-time resale HDB buyers compared to BTO or SBF flats.
- At least 21 years old.
- At least one Singapore Citizen (or 2 PRs).
- No income restrictions (However income ceilings apply for Grants & HDB Loans).
- No Applicants own any HDB or private properties (Any properties must be sold within 6 months before resale flat purchase).
- If you desire a larger and better furnished HDB flat, you can opt for a DBSS (Design, Build and Sell Scheme) flat.
- Meet the Ethnic Integration Policy (EIP) & Singapore Permanent Resident (SPR) Quota (Affects mainly Chinese Applicants).
- Register your Intent-to-Buy at the HDB Resale Portal to check eligibility.
ARRANGE FINANCING
- Check with and choose either HDB or a bank for the mortgage loan amount and payment terms (See: Mortgage & Financing Guide). Do note that HDB has no lock-in period, so you can switch to a bank loan or pay up your HDB loan any time you want.
- For HDB Loan: Get your HDB Loan Eligibility Letter (HLE). Approval takes about 2 weeks so apply ASAP. Use the HDB Budget Calculator to check your maximum budget and the HDB Payment Calculator to work out a payment plan.
- For Bank Loan: Get your Approval-In-Principle (AIP) from your chosen bank. Approval takes about a week (the AIP is not mandatory, you can also get an estimate using the DBS Mortgage Calculator).
SELECTION & BOOKING
- Check online property websites (mainly Property Guru, SRX, 99.co) for available HDB resale flats.
- Arrange an appointment with the seller's property agent (directly or via your agent) to view the resale flat(s) you are interested in (See: Finding Your Perfect Home).
- Once you have made your decision, make a price offer to the seller or seller's agent.
SUCCESS > RECEIVE OTP
- You must immediately apply for a Request for Valuation at a cost of $120, which is an HDB estimate of the value of the resale flat. The Cash-Over-Valuation (COV) is the difference between the purchase price of the flat and actual valuation by HDB, and must be paid in cash (CPF and housing loans cannot be used).
- You must now apply for any eligible CPF grants. If using CPF to pay for your house, fill up and submit the CPF Withdrawal Form.
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For HDB Loan:
- If your offer is accepted, submit your HLE and pay the Option Fee (not more than $1,000) to the seller who will grant you an Option to Purchase (OTP) via the HDB Resale Portal.
- Secure your HDB Loan via the HDB Resale Portal.
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For Bank Loan:
- If your offer is accepted, pay the Option Fee (not more than $1,000) to the seller who will grant you an Option to Purchase (OTP) via the HDB Resale Portal.
- Discuss with your bank representative to secure a Mortgage Package, Conveyancing Lawyer, and Letter of Offer (LO).
EXERCISE OTP
- Within 3 weeks of receiving the OTP, sign the OTP and return it to the seller along with the Option Exercise Fee (usually $4,000 or less) to "exercise" the OTP.
- For Bank Loan: Also sign the Letter of Offer and return it to the mortgage bank.
- If you now decide not to purchase the resale flat, you will forfeit the Option Fee.
SUBMIT RESALE APPLICATION
- Within 7 days of exercising the OTP, you and the seller must submit your respective Resale Applications. Otherwise, the resale application will be cancelled and the HDB admin fee forfeited.
- The resale application result will be sent to both parties in about 2 weeks.
- Meanwhile, pay all resale fees (HDB Caveat and Conveyancing Fees).
- For HDB Loan: Purchase the mandatory HDB Fire Insurance Policy.
RESALE COMPLETION APPOINTMENT & KEY COLLECTION
- If the resale application is approved, HDB will request both parties to come down to HDB Hub for a Resale Completion Appointment, usually about 8 weeks from date of approval.
- Bring your Identity Card, Original OTP, Paid Downpayment Receipt, Certificate of Fire Insurance (for HDB Loan).
- Sign the Transfer and Mortgage documents and collect your keys from the seller.
- For HDB Loan: Setup your Utilities.
- For Bank Loan: Apply for Fire Insurance & setup your Utilities.
RESTRICTIONS
- For HDB Flats & Non-Privatised ECs (less than 10 years after TOP)
- You cannot rent out/sub-lease out any part of the flat before the Minimum-Occupancy-Period (MOP) of 5 years from collecting the keys.
- You cannot sell the flat (except back to HDB) before the MOP of 5 years from collecting the keys.
- You cannot buy another house before the MOP of 5 years from collecting the keys.
- You can only keep 1 dog from the list of approved breeds in your flat. Cats are not allowed.
- For Privatised ECs (10 or more years after TOP)
- No renting out/sub-lease/selling restrictions apply.
- You can keep pets according to your Estate Management guidelines.
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