Getting a Build-to-Order (BTO) flat is a dream come true for many Singaporeans, especially since it is likely going to be the first home that they will be buying.
Buyers who are eligible can apply for a BTO flat when the sales exercise starts. Thereafter, successful applicants can book a flat and get their flat after three to five years.
For those who are unsure about the eligibility criteria for purchasing a BTO flat, here is a comprehensive guide on the application process. Continue reading to understand more about the eligibility criteria, application process, payment and timeline.
"Am I able to apply for a BTO flat?"
According to HDB's eligibility criteria, these are the requirements that you have to fulfil before being able to apply for a BTO flat:
For singles or up to four joint singles: must be aged 35 and above, and applying within a non-mature estate for a 2-room Flexi flat (on a 99-year lease)
For non-married couples: be a fiancé/fiancée couple
For couples with a non-resident spouse: must be aged 35 and above, and your spouse must have a valid work pass or visit pass. You are only able to apply within a non-mature estate for a 2-room Flexi flat (on a 99-year lease)
For families: must apply with your spouse (including children if any) and parents. OR, if you are a divorced person, you must have legal control, custody and care of your child, and apply with him/her
For orphaned siblings: every sibling must be single and apply together, with no other separate flat applications. One of the deceased parents must be a Singapore Citizen OR a Singapore Permanent Resident
On top of all the criterion mentioned, every applicant and occupier shown in the flat application should be a Singapore Citizen and they must apply with at least another Singapore Citizen or Singapore Permanent Resident if they are purchasing a flat with their family.
Applicants and occupiers shown in the flat application should not possess any other private properties (overseas or local) OR have gotten rid of their private properties in the past 30 months.
The family should also hit these criterion:
BTO flat type | Total average gross monthly income should not exceed: |
2-room Flexi | S$7,000 (on 99-year lease) or S$14,000 (for short-lease) |
3-room | S$7,000 or S$14,000 depending on project |
4-room or bigger | S$14,000 or S$21, 000 if purchasing with extended or multi-generation family |
"How do I apply for a BTO flat?"
1. Check your eligibility and research on housing loan choices
This e-service will be useful for you to check your eligibility for purchasing a BTO flat.
Having a budget will allow you to narrow down your options and have an easier time choosing the best flat for you. Have a look at your eligibility for housing loans from either a Bank/Financial Institution or HDB to decide on a budget.
Applying for a housing loan via a Bank/Financial Intuition
Bank loans have lower interest rates. However, these interest rates are not always the same, as they depend on market conditions.
After applying for a bank loan, the bank will provide you a Letter of Offer (if you have already booked a flat) so that you can assess your eligibility for a housing loan. Either that, or the bank will give you an an In-Principle Approval (if you applied before booking your flat).
Applying for a housing loan via HDB
HDB's housing loan is an option for you if your household's average gross monthly income is S$14,000 and below. The amount of loans given to you will be influenced by HDB's Loan-to-Value limit, HDB's credit assessment, the flat's remaining lease, and other related HDB policies.
If you want to know your eligibility for an HDB housing loan, you can apply for the HDB loan Eligibility (HLE) letter. This letter will tell you the amount of HDB housing loan that you are able to get, the repayment period, the monthly installment, and other terms and conditions.
Do note that you must have a valid HLE letter when booking a flat if you wish to take up the HDB housing loan.
2. Stay updated on sales launches
After deciding on a budget, you are now ready to choose the sales launches that you may be interested in. You can consider signing up for HDB's eAlert Service to be notified whenever a sales launch is announced.
Besides BTO sales launches, there are Sale of Balance Flats (SBF) exercises which allows you to apply for flats from previous BTO sales launches, repurchased flats and surplus replacement flats under the Selective En Bloc Redevelopment Scheme (SERS).
HDB can offer you unselected flat from SBF sales launches under the open booking of flats. For open booking of flats, you are able to apply for a flat online whenever you want, and get a queue number for flat-booking on a first-come-first-served basis.
Nonetheless, never forget your budget. Apply for a flat that you are comfortable purchasing. For fresh graduates or students, you may not be able to predict how much you will earn in 4-5 years, when you start paying the mortgage.
Consider using CPF's First home calculator to gauge the price of a flat and the amount of housing loan that you should take up, according to you and your spouse's combined income. Besides that, you can use HDB Flat Portal's budget or payment plan calculator to find out the best budget for you.
3. "How do I apply for a BTO?"
After finding a sales launch that you want, you can move onto applying for a flat through HDB InfoWEB. Do take note, though, that there will be an administrative fee worth $10 that is chargeable every time you apply for a flat. This fee is non-refundable, and can be paid through mobile app payments, or credit card.
Once you have applied, you can login to MyHDBPage for a summary of all transactions and communications you had with HDB. Within two months, you will be notified of your balloting status, and if your ballot is successful, you will receive a queue number.
4. "What housing grants am I eligible for?"
Upon knowing the housing loan you can receive, you can start thinking about housing grants and collate all the income documents necessary before heading to your flat booking appointment. As of now, first-timer applicants can apply for the Enhanced CPF Housing Grant of up to $80,000.
Take note that it is compulsory to bring a valid HLE letter for your flat booking session if you are planning to apply for a HDB housing loan. The HLE letter is compulsory for all, except those that qualify for deferred income assessment.
For couples who are full-time students, or have finished full-time studies or National Service within the last 12 months before flat application, you can apply for deferred income assessment, which allows you to delay income assessment for a housing loan until it is nearer to the key collection date.
5. "How much will it cost to book a flat?"
Once application is done, you will be given a queue number through balloting. This queue number affects the order in which you can book a flat compared to other applicants.
When you go for your flat booking appointment, you will have to pay for an option fee based on your chosen flat type.
Flat Type | Option Fee |
4-room flat or bigger | S$2,000 |
3-room flat | S$1,000 |
2-room Flexi flat | S$500 |
NETS is the only payment mode for the option fee. Ensure your daily transaction limit is above the option fee amount before you go for your flat booking appointment.
You may also consider the Optional Component Scheme (OCS) during flat booking
6. "What happens after I book my flat?"
6 months after you book your flat, you will receive an invitation to sign your Agreement for Lease and make your downpayment simultaneously. For those that are taking a bank loan, bring along a valid Letter of Offer.
This is the amount of downpayment you have to pay:
For a HDB housing loan, downpayment is 10% of the purchase price. You can pay this amoun via Enhanced CPF Housing Grant (if applicable), or CPF savings. The 5% balance payment must be made upon collection of keys.
However, for housing loans made through banks/financial institutions, you have to pay 20% of the flat's purchase price (with 5% in cash, and the last 15% in cash or CPF savings).
Financial institutions can provide a maximum loan quantum of 75% of the purchase price. So, it is necessary for you to pay 5% of the purchase price upon key collection.
The Staggered Downpayment Scheme is also an option for couples below 30 years old, and one of partners is a first-time applicant.
| Housing loan from HDB/not applying for loan | Housing loan from bank - loan ceiling 75% | Housing loan from bank - loan ceiling 55% |
1st payment: Signing of Agreement for Lease | 5% through CPF Ordinary Account savings or cash | 5% cash, 5% through CPF Ordinary Account Savings or cash | 10% in cash |
2nd payment: collection of keys | 10% via CPF Ordinary Account Savings or cash | 15% through CPF Ordinary Account savings or cash | 35% via CPF Ordinary Account savings or cash |
Other fees
There are also stamp duties, legal fees and other administrative fees like registration fees and caveat fees that you have to pay.
You can calculate your stamp duties through this calculator. Here is a rough rundown of how much you have to pay through cash or CPF savings:
First $180,000: 1%
Next $180,000:2%
Next $180,000: 3%
Remaining amount: 4%
As for legal fees, you can expect to pay these amounts in cash or CPF savings
First $30,000: $0.90 per $1,000
Next $30,000: $0.72 per $1,000
Remaining amount: $0.60 per $1,000
7. "What do I do after I have collected my keys?"
If you are using your CPF savings to pay your home loan installments, you have to pay for premiums under the CPF Home Protection Scheme, which is a mortgage reducing insurance scheme from the CPF Board. The premium amount will depend on gender, age, the loan amount and the declared percentage of coverage.
If you are taking an HDB housing loan, then purchasing fire insurance would be compulsory for you. Take note, however, that this insurance plan only covers fixtures and fittings, and building structures provided by HDB, so ensure that the other items in your house is protected under a more comprehensive plan
Survey fees are a compulsory expense for every applicant, whether they took up a HDB loan or a bank loan
Flat type | Survey Fee (not inclusive of GST) |
2-Room | S$150 |
3-Room | S$212.50 |
4-Room | S$275 |
5-Room | $325 |
Executive Flat | S$375 |
8. "What comes after you buy your BTO flat?"
Renovation
Ensure that you have enough money for renovation -- around $30,000 - $60,000 for a 4-room flat. You can consider purchasing an insurance savings plan to accumulate enough savings for these renovations.
Protect your home with home insurance
As mentioned previously, HDB fire insurance only protects your house's structure if a fire breaks out. You can complement HDB fire insurance with home insurance.
Purchasing your first house can be a daunting experience. Feel free to reach out to me via phone call or whatsapp: 96891153
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