What is the first step if I am looking to buy a resale HDB flat?
First of all, apply for the HDB Flat Eligibility (HFE) letter on the HDB Portal.
This letter will provide you with information about your qualification to purchase a resale flat, in addition to outlining the CPF housing grants and HDB housing loan amount you are entitled to.
If you are intending to take a home loan from a bank instead of HDB, then you should concurrently apply for an In-Principal Approval and subsequently get the Letter of Offer (LO) from the bank.
So I have the HFE letter, what's next?
Congrats! With the HLE letter in hand, you can now set a budget for your search. Your HFE letter is valid for 6 months.
PropertyGuru is by far the most popular portal where the latest resale listings are posted and updated regularly.
Start with a shortlist of about 3-5 resale flats and set up viewing appointments.
You should always visit the flats you like at least twice, preferably at once in the day and once in the evening.
This will give you a good idea if there are any night and day differences or if you spot any dealbreakers.
I would like to buy a resale flat that I like, what is next?
- Get an OTP from the seller or seller’s agent. The seller needs to have already registered for an Intent to Sell for more than 7 days before an OTP can be issued to you.
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You will need to pay an option fee between $1-$1000 to the seller.
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You will need to submit for a Request for Value by the next working day after you get the OTP.
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You have 21 calendar days to decide if you would like the exercise the OTP. Exercising means you have decided to buy the flat.
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If you are getting a home loan from a bank, you will need the LO before exercising the OTP.
- With the HFE letter (+ LO for bank loan) and HDB’s valuation, you may exercise the OTP if you decide to purchase the resale flat.
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You will then need to pay the seller an option exercising fee of not more than $5,000, including the option fee amount that you’ve already paid.
After exercising the OTP, how do I complete the purchase?
Both you and the seller are required to individually submit your portions of the resale application within the specified timeframes:
- Within the designated number of days mentioned on page 4 of the OTP.
- Within 7 days of each other’s submissions.
If both parties’ application and documents are in order, HDB will notify you and the sellers of their acceptance of the application.
Thereafter, it will take about 8 weeks to process the application and complete the transaction. This is the earliest possible date to complete the transaction.
You may possess the flat after transaction is completed, unless you have agreed to give an extension (maximum up to 3 months) to the seller.