BUY RESALE HDB FLAT PROCEDURE | HDB RESALE FLAT ULTIMATE GUIDE FOR RESALE HDB BUYER | RESALE HDB FLAT BUYER GUIDE

Buying Resale HDB Flat Procedure: Ultimate Guide For Resale HDB Buyer

Are you looking to buy a resale HDB flat in Singapore? Whether upgrading, relocating, or entering the property market for the first time, purchasing a resale HDB can be a better and more timely option. Unlike Build-to-Order (BTO) flats, resale HDB flats are readily available, allowing you to move in without long waiting periods. However, the process of buying a resale flat comes with its own set of rules and procedures that every potential buyer should be aware of.

Resale flats are available across various estates in Singapore, from mature neighborhoods with established amenities and transport links to newer estates offering fresh development opportunities. Regardless of the location, buying a resale HDB requires careful financial planning, understanding eligibility criteria, and being aware of available housing grants. As a potential buyer, it’s crucial to familiarize yourself with the valuation process, how to secure the right home loan, and the necessary legal steps.

This guide will walk you through every stage of the resale HDB purchase process, ensuring you are well-informed about your housing options. From exploring suitable flats to finalizing the transaction, you’ll find practical tips and advice to make your home-buying experience smooth and stress-free.

Step 1: Register Preliminary HDB Flat Eligibility (HFE) check.
Step 2: Obtain HFE Letter.
Step 3: Home Search and Viewing Arrangement.
Step 4: Obtaining Option to Purchase (OTP) from Resale Flat Seller.
Step 5: Submit Request for Value.
Step 6: Confirming Mode of Financing.
Step 7: Convert In-Principle Approval (IPA) into a Letter of Offer (LO).
Step 8: Exercise the OTP.
Step 9: Submit HDB Resale Application.
Step 10: Acknowledge Resale Documents.
Step 11: Pay Fees.
Step 12: Get Resale Approval.
Step 13: Final Inspection.
Step 14: Attend Completion Appointment.
Step 15: Miscellaneous Steps.

Step 1: Register Preliminary HDB Flat Eligibility (HFE) check:

Before you begin your journey to buy a resale HDB flat, completing the Preliminary HDB Flat Eligibility (HFE) check is essential. Introduced by the Housing & Development Board (HDB) to streamline the buying process, this step helps ensure that potential buyers meet the eligibility requirements before proceeding with their flat purchase. The HFE check is crucial as it consolidates three key areas: your eligibility to purchase a flat, qualify for CPF housing grants, and secure an HDB housing loan.

By registering for the Preliminary HFE check, you can better understand your financial standing and eligibility criteria. It allows you to make informed decisions, preventing you from progressing too far into the buying process without knowing whether you meet the qualifications. The introduction of this step also minimizes delays and confusion during the later stages of the purchase.

The HFE check simplifies the home-buying process by combining various eligibility assessments into one convenient step, reducing the need for multiple applications. It provides greater transparency and helps you better plan your budget by understanding the grants and loan options for which you may qualify. Completing this check before you start looking for a flat ensures that you are well-prepared, financially capable, and ready to make an informed decision when you find the right resale HDB flat.

Step 2: Obtain HFE Letter:

After completing the Preliminary HDB Flat Eligibility (HFE) check, the next crucial step is to obtain the HFE Letter. The HFE Letter is an essential document as it consolidates several key elements in the home-buying process:

Your eligibility to purchase an HDB flat.
The type of grants you qualify for.
The amount of loan you can secure.

It allows you to move forward confidently with your plan, knowing that you’ve passed the initial checks and are ready to start searching for your resale flat. Additionally, your HFE Letter must be valid when making an offer on a resale HDB unit, so obtaining it beforehand ensures a smooth transaction later.

To obtain the HFE Letter, you must submit all required documents listed by HDB, such as proof of income, personal identification, and information about your current financial commitments. Once approved, you’ll receive the HFE Letter digitally through the HDB portal. This letter confirms your financial readiness and simplifies communication with sellers and financial institutions, as it clearly outlines your eligibility status and financing options.

Note: If you intend to get a housing loan, you must indicate in your HFE application whether you are getting the loan from HDB or a financial institution. Suppose you are getting a housing loan from a financial institution. In that case, you should request an In-Princple Approval (IPA) to confirm your loan eligibility with the financial institution when you apply for the HFE letter. You may request an IPA when you apply the HFE letter through “My Flat Dashboard,” or If you engage a property agent service, your property agent will help you request an IPA via a banker.

Securing the HFE Letter ensures a smoother and faster resale HDB buying process. It will also provide clarity on what you can afford and the grants you are eligible for, helping you to make more informed decisions.

When you need to apply the HFE Letter:

Once HDB receives the complete set of required documents, the HFE application can take up to a month to process. Due to the higher application volume, some months may take longer, especially before or during the sale launch month.

You must have a valid HFE letter before obtaining an Option to Purchase (OTP) from a flat seller and when you submit your HDB resale application to HDB.

The HFE letter needs time to process, so we recommend that you apply it early before you even start viewing any resale flat so that you are ready and can make an offer when you find the flat you would like to offer.

How to apply the HFE Letter:

The HFE letter is free of charge, and you can only apply via the HDB Flat Portal. HDB will notify you via SMS and email once your HFE Letter application approval status is ready.

You must complete your Preliminary HFE check (Step 1) before applying for an HFE letter (Step 2) within 30 calendar days. I suggest you complete both steps within the same calendar month to avoid updating the employment and income details of all the listed applicants and occupiers.

Once you submit the HFE letter application, you will be notify via SMS or email if HDB need you to submit additional documents for their review.

Income Guidelines:

When you apply for the HFE letter, you will log in to your Singpass to retrieve your information via Myinfo, including income information, to minimize document submission. However, you may still need to upload supporting documents if HDB needs them, and HDB will notify you via SMS and email.

HDB takes a 12-month income assessment period, and the end of the assessment period is two months preceding the month of the HFE letter application. For example, if you apply for the HFE letter in July 2024, the assessment period will be from June 2023 to May 2024.

For household income, all applicant’s and occupier’s income will be used for the assessment.

Only the applicant’s income will be used for credit assessment for the HDB loan.

Validity and possible review of the HFE letter:

Your HFE letter is valid for 9 months from the date of issue. As mentioned, you must have a valid HFE letter when obtaining an OTP from the flat seller(s) and submitting the HDB resale application. However, you do not need to worry if the HFE letter expires after the HDB resale application while waiting for the completion appointment.

HDB will review the HFE letter if the information provided is incorrect or if some changes or circumstances may affect your eligibility to buy the flat, the housing grants application, or your HDB loan.

Step 3: Home Search and Viewing Arrangement:

Once you’ve secured your HFE Letter, the exciting part begins—searching for your dream resale HDB flat. At this stage, home search and viewing arrangements play a critical role in finding a property that suits your needs, preferences, and budget. With resale flats available across various neighborhoods, from mature estates to newer areas, it’s important to start by narrowing down the location, flat type and features you prioritize.

To kick-start your home search, explore listings on popular real estate platforms and HDB’s resale flat listing service portal to look for suitable flats or alternatively you may also engage a property agent specializing in resale flats to match suitable worth buying units for you to view and most importantly not over paying the purchase price when you buy. Key factors to consider include your needs as priority, proximity to amenities like schools, transport options, and community facilities. When shortlisting properties, pay attention to the condition of the flat, its remaining lease as it may affect your loan quantum and CPF usage if the remaining lease does not cover the youngest buyer to 95 years old, and any potential renovation costs. It’s also wise to check if the flat falls within the Ethnic Integration Policy (EIP) limits.

After identifying potential flats for viewing, the next step is to schedule viewings. Viewing the flat is an essential part of the buying process as it allows you to assess the flat in person and get a feel for the surrounding neighborhood. When attending viewings, take note of details like the layout, the condition of the fixtures, and whether you need any major renovation or repairs. Also, you may ask the seller or agent about the flat’s history, including previous renovations and the reason for selling.

By conducting thorough research and attending multiple viewings, you can better equip yourself to decide on the right resale HDB flat for you. This step is crucial to finding a home that fits your budget and matches your long-term living needs.

If you find that you need a property agent to help match suitable units and ensure that you do not overlook any process during viewing and entering into the contract with the seller, then you should start looking for a property agent and discuss with him/her how to navigate the home search with you.

Engaging a property agent can offer significant benefits. A trusted agent can help streamline the home search by understanding your preferences, shortlisting relevant properties with upside potential, and organizing efficient viewing schedules. A professional agent also brings valuable insight into the current market trends and transaction prices, which can help you make informed decisions before purchase, especially during price and timeline negotiations. Moreover, the agents can help you navigate HDB policies, ensuring that key steps, such as the Ethnic Integration Policy (EIP) quota, are not overlooked.

Step 4: Obtaining Option to Purchase (OTP) from Resale Flat Seller:

Once you’ve identified the perfect resale HDB flat, the next critical step is obtaining the Option to Purchase (OTP) from the seller. The HDB OTP is a legal document that grants the buyer (you) the exclusive right to purchase the flat within a specified period; for HDB flats, it is 21 calendar days. This document is a vital part of the resale HDB transaction, as it effectively marks the start of the negotiation and purchase process.

To secure the OTP, you must negotiate with the seller, and both parties must mutually agree on the selling price and timeline requirement. It’s important to conduct thorough research on recent transaction prices in the area to ensure the price aligns with the market value. Once both parties reach an agreement, the seller will issue the OTP after receiving a non-refundable option fee from you, ranging from S$1 to S$1,000, but typically, most sellers will ask for a S$1,000 option fee. The option fee is part of the purchase price and will be offset from the final sales amount.

Obtaining the OTP is a pivotal step in the resale flat buying process, as it provides both parties with a clear framework to move forward and finalize the sale. You should carefully review the terms of the OTP and be fully prepared before making this legal commitment.

The OTP serves as a commitment from the seller to sell the flat to you at the agreed-upon price within the option period (21 calendar days).

Step 5: Submit Request for Value:

If you are taking a housing loan or using CPF OA savings to finance the purchase of the HDB flat, you need a valuation report. You can submit the valuation request via my HDB Dashboard or your agent will submit a valuation request on your behalf if you engaged one.

You may submit it via HDB Request for Value.

Note: If you don’t intend to apply for a housing loan and are not using your CPF OA savings (using full cash money) to purchase the flat, you are not required to Request a Valuation.

Step 6: Confirming Mode of Financing:

If you indicated that you are getting an HDB housing loan, your HFE letters will reflect the housing loan information.

If you decide to get a housing loan from a financial institution (bank), you must have a valid Letter of Offer (LO) from the bank before you exercise the OTP.

Step 7: Convert In-Principle Approval (IPA) into a Letter of Offer (LO):

If you requested an IPA when you submitted the HFE application via HDB My Flat Dashboard, you must convert the IPA into an LO at this step before you can exercise the OTP.

If your property agent requested the IPA via a banker, your agent will assist you in obtaining the LO from the banker before you exercise the OTP.

Step 8: Exercise the OTP:

Once you are ready and have decided to proceed with the purchase, you must exercise the OTP by signing the OTP page 8 Acceptance section and paying the seller an additional deposit, known as the exercise fee, which can be up to S$5,000 (inclusive of the initial option fee paid). This step finalizes your commitment to buy the flat.

Note: The OTP expires at 4 p.m. on the 21st calendar day. Thus, you should plan ahead and exercise the OTP before it expires.

By exercising the OTP, both parties enter into a legally binding agreement.

Step 9: Submit HDB Resale Application:

After exercising the OTP, you must prepare the paperwork or support documents for the HDB resale application, submit the resale application, and prepare for the legal conveyancing process.

If you do not have a property agent, you will need to submit the resale application via My HDB Dashboard.
If you engaged a property agent to help you along, your agent will submit the resale application on your behalf.

Both parties must submit their respective portions of the HDB resale application within the number of days as per clause 12 of the OTP. The second party submitting the HDB resale application must do so within 7 calendar days. Otherwise, the resale application will lapse, and both parties will have to restart the resale application process and pay the resale application fees again.

The information required for the HDB resale application includes:

The address of the flat you are buying
The flat sellers’ particulars (such as name and NRIC)
The unique OTP Serial Number
The Option Date (OTP Date)
The Purchase Price
The Option Fee, plus the Option Exercise Fee
The Acceptance Date (Exercised Date)

HDB may also request you to submit the following documents (if applicable):

The Identity Card or Passport (for non-citizens)
Your marriage certificate
Your child’s birth certificate
Your late spouse’s death certificate, if any
The Deed of Separation, Divorce Certificate, Decree Nisi/ Interim Judgment, Certificate Making Decree Absolute/ Certificate Making Interim Judgment Absolute, if any
The Power of Attorney, if any
The Lasting Power of Attorney, if any

The other information required includes:

Housing loan information
Types of CPF housing grants / Proximity housing grant application
The manner of holding the flat after the purchase, namely Joint Tenancy or Tenancy-in-Common
Your declarations regarding your purchase, such as ownership of property and undischarged bankruptcy, if any
Solicitors information (HDB or Private)
Enhanced Contra Facility information, which allows you to sell and buy concurrently
Appointing a Power of Attorney, if any
Temporary Extension of Stay Request, if any

Step 10: Acknowledge Resale Documents:

HDB will verify both your and your seller’s supporting documents and eligibility after receiving the resale application and uploading the complete supporting documents from both parties.

HDB usually accepts the resale application within 28 working days and notifies you via SMS about its acceptance. The resale completion date will be scheduled 8 weeks from the acceptance date.

Upon acceptance of the resale application, HDB will prepare and upload the necessary documents for you and the seller to endorse. These documents are generally ready about three weeks after the resale application has been accepted.

HDB will notify you via SMS when the documents are ready to be endorsed via My Flat Dashboard. All parties must log in to endorse the documents within 6 calendar days. If you overlook this and miss the deadline, HDB will extend the deadline by 2 calendar days at most.

Note: If you apply for a proximity housing grant, your parent must also log in to endorse the documents too.

Suppose you appointed HDB as your solicitors for the purchase. In that case, you will need to endorse the buyer’s financial plan, CPF withdrawal, Health declaration for the CPF Board’s Home Protection Scheme, and Resale documents.

If you appointed your private solicitors, the documents you need to endorse may differ from the above.

Step 11: Pay Fees:

Once you endorse all the documents, you must proceed to the “Payment Step” to pay the necessary fees.

Conveyancing Fee

If you engage HDB to act for you in the purchase, the fees payable include the following:

Legal fees for transfer of flat ownership to you.
Legal fees for the mortgage if you are taking an HDB loan.
Title search fee.
Registration fee for transfer.
Registration fee for the mortgage if you are taking an HDB loan.
Buyer’s caveat fee.
Miscellaneous fees.

You may use the HDB Legal Fees Enquiry e-service to estate the fee payable.

If you engage private solicitors, the fees payable include the following:

Legal fee for conveyancing (to check with your law firm rate).
Legal fee for the mortgage if you are taking an HDB loan.
Title search fee, registration fee, and caveat fee.
Miscellaneous fees.

Buyer’s Stamp Duty (BSD)

Besides the above fee, you must also pay the Buyer’s Stamp Duty (BSD) fee. The BSD is payable using CPF savings, and HDB, by default, will arrange to deduct the BSD from your CPF savings. Thus, you must inform HDB if you wish to use cash to pay for the BSD.

For BSD cash payment option:

If you engage HDB to act for your purchase, you must pay the BSD during the HDB resale completion appointment by Nets and/or cashier’s order.
If you engage private solicitors to act for your purchase, your lawyer will advise you on the BSD payment schedule.

You can use the IRAS Stamp Duty Calculator to estimate the BSD you will need to pay for your purchase.

Initial Payment

The initial payment is as follows:

HDB loan: 25% of the lower resale flat’s price or value of the flat.
Bank loan: 25% of the lower resale flat’s price or value of the flat if LTV is 75%. Of these, 5% must be cash; the remaining 20% can be cash and/or CPF OA savings (including CPF housing grants if eligible).
Bank loan: 45% of the lower resale flat’s price or value of the flat if LTV is 55%. Of these, 10% must be cash; the remaining 35% can be cash and/or CPF OA savings (including CPF housing grants if eligible).

If you engage HDB to act for your purchase, HDB will notify you to make the initial payment after you have endorsed the resale documents. Usually, it will be after you have confirmed the financial plan in HDB My Flat Dashboard via online CPF withdrawal.

If you engage private solicitors to act for your purchase, your lawyer will advise you on the initial payment schedule. Usually, it will be upon resale completion, but double-checking with your private solicitors for the payment schedule is highly recommended.

Step 12: Get Resale Approval:

The resale application approval is usually granted in 2 weeks after all parties have endorsed the resale documents and made all the required payments.

HDB will notify you via SMS and email, and HDB will post the approval letter on HDB My Flat Dashboard.

Step 13: Final Inspection:

The final inspection ensures that the seller has vacated the property and removed all bulky, movable items. It gives the buyer peace of mind that the flat is empty, and ready for handover, as specified in the Option to Purchase (OTP).

During the final inspection, the buyer should verify that the seller has cleared all personal belongings that were not part of the sale, including large furniture or appliances. This is important because any unwanted items left behind can cause delays in moving in or require additional removal costs.

A final inspection is needed to ensure a smooth handover and prevent potential disputes at the HDB completion appointment. If the seller fails to remove bulky items or vacate the property, the buyer can raise these concerns before the final transaction is completed if there is no temporary of stay arrangement made.

Thus, by conducting a thorough final inspection, buyers can ensure the flat is fully ready for their move-in and avoid unnecessary complications after the handover.

If there is temporary of stay arrangement (maximum 3 months), it is not necessary for the seller to vacate or remove any item before the completion date. Sellers and buyers should arrange privately for the handover of the flat at the end of the temporary of stay arrangement.

Step 14: Attend Completion Appointment:

About 1 week before the completion, you should receive a notification from HDB about the completion appointment time to attend the appointment.

If you took up an housing loan from HDB, the time of appointment is between 10am – 12pm.
If you took up housing loan from Financial Institution (Bank), the time of appointment is between 2pm – 5pm.
If you are not taking any loan for the purchase, the time of appointment can be between 10am – 12pm or 2pm – 5pm.

You must prepare the items listed in Annex A of the completion letter for the completion appointment.

If you engage HDB to act for your purchase, you must bring the listed items when you attend the completion appointment in person at Toa Payoh HDB Hub. Such items may include the following:

NRIC of all buyers
balance payment of the purchase price,
any outstanding fees, if any
any outstanding documents, if any

If you engage a private solicitor to act for your purchase, you may choose to skip the completion appointment in person. Your solicitor will arrange for a representative to attend your completion appointment. Still, you must prepare the listed items in Annex A beforehand and pass them to your solicitor at least a day before the completion appointment.

You may collect your new home keys and ownership letter at your solicitor’s office after the HDB completion appointment the same evening.

Step 15: Miscellaneous Steps:

Fire Insurance For HDB Flat

If you are taking a housing loan from HDB, you must buy a compulsory fire insurance policy from HDB’s appointed insurer. The policy covers the building structures, fixtures, and fittings provided by HDB. It does not cover home contents such as renovations, personal belongings, furniture, etc. However, you may check with the insurers if you wish to cover home contents, and usually, it comes with a premium.

You need to produce either the digital or the hard copy of the valid certificate of HDB fire insurance during the resale completion appointment.

The good news is that if the sellers have valid HDB fire insurance for the flat, you need not buy new insurance yet. However, you need to renew when the existing policy expires.

If you are taking a housing loan from a financial institution (bank), the bank will also mandate you to purchase fire insurance. Usually, the bank will tie up with their appointed insurer. However, you may choose to buy with your insurer, but there will be some admin fee incurred yearly by the bank if you choose your insurer.

Applying for Utilities Account

If you urgently need to start your renovation and need the utility supply to turn on as soon as possible on the completion date or next, I suggest you log in to the SP services website and start applying for your utilities account about two weeks before the turn-on date, as the account application process usually gives the turn-on dates as one week or later.

Alternatively, if you want to turn on the utilities over the next 1-2 days, you may visit the SP service counter in person to apply for your account and schedule an early turn-on date if available.

Summary: Buying a Resale HDB Flat – A Step-by-Step Guide

Purchasing a resale HDB flat in Singapore can be a smooth and rewarding experience if you follow the right steps. This guide walks you through the entire process, from the initial Preliminary HDB Flat Eligibility (HFE) check to the final stages of HDB completion. Key stages include:

Securing the Option to Purchase (OTP).
Confirming your mode of financing.
Conducting the final inspection to ensure the flat is ready for handover.
Miscellaneous Steps that many home buyers overlooked.

Throughout the journey, you are encouraged to carefully plan your finances, understand your eligibility for CPF housing grants and loans, and thoroughly inspect potential flats during viewings. While the process can be managed independently, engaging a property agent can streamline the search, provide market insights to avoid overpaying for the flat, and guide you through complex policies and paperwork.

With this resale HDB buying guide, you will be equipped with the valuable knowledge needed to make informed decisions, confidently navigate the resale market, and ultimately secure your ideal HDB home.

Do connect with us should you need any advise or consultation pertaining to HDB home buying and we are just a click or phone call away.

Happy home hunting!

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