• 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

Fiancé/fiancée scheme

Single Singapore citizen scheme

Joint singles scheme

Non-citizen spouse scheme

Non-citizen family scheme

Orphans 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

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