Starting from 9th May 2023, HDB has introduced an updated document called the HDB Flat Eligibility (HFE) letter.
This new letter is designed to offer prospective flat buyers a comprehensive evaluation of their housing and financial possibilities prior to embarking on their home purchasing endeavour.
Replacing the previous HDB Loan Eligibility (HLE) letter, the HFE letter will furnish flat buyers with:
- Upfront information regarding their qualification for either a new or resale flat purchase
- CPF housing grants, and
- HDB housing loan. This will encompass details about the grants and loan sums applicable.
HLE will no longer be used moving forward.
When will I need the HFE letter?
You must have a valid HFE Letter when you want to:
Apply for a flat directly from HDB when they are selling new flats (Build-to-Order a.k.a. BTO) or opening bookings for available flats (Sales of Balance Flats a.k.a. SBF).
Get an Option to Purchase (OTP) from someone selling their flat and when you send an application to HDB for buying a resale flat.
When should I apply for HFE Letter?
If you plan to buy a flat, make sure to apply for an HFE letter ahead of time. Remember to consider the time HDB needs to process your application and the information you provide in the letter.
HDB can take up to 21 days to process your HFE Letter application.
If you’re thinking of getting a loan from a bank, you can also apply for an In-Principle Approval from them while you’re getting your HFE Letter. This letter will also give you an estimate of how much they might let you borrow.
How do I apply for the HFE?
Getting an HFE Letter is a simple process with just two steps.The HDB Flat Portal will guide you through both steps. To make the process smoother, have the required information ready, like your Singpass login and details of all applicants and occupants.
Step 1
After you provide your information, you’ll receive a quick assessment of your eligibility for buying an HDB flat, getting CPF housing grants, and taking an HDB housing loan.
Step 2
Make sure to apply for the HFE Letter within 30 days after you start the Preliminary HFE Check. If you don’t, you’ll need to do the Preliminary HFE Check again.