Buying your dream home is definitely exciting, especially for first-timers. One of the first steps when taking that leap towards adulting is financial planning. This ensures that you can finance the property that you intend to buy.
Getting the right financing is crucial. The HDB housing loan amount you can take will depend on your credit assessment, Loan-to-Value limit, remaining lease of the flat you are buying or taking over, and other HDB policies applicable at the point of the flat application.
When Are You Required to Have a Valid HLE Letter?
1. When Taking an HDB Loan
HDB requires all potential flat buyers and transferees who wish to get an HDB concessionary loan to first obtain an the HLE before they commit to any flat purchase.
Applicants without a valid HLE letter when they book a flat will not be eligible to apply for an HDB housing loan later on.
2. When Exercising the Option-to-Purchase
Planning to buy a resale flat? After your offer was accepted by the owner, the seller will grant you Option-To-Purchase (OTP) and you have up to 21 days to consider before exercising the OTP.
3. When Booking a Flat with the HDB
You need to produce a valid HLE at the point of flat selection. If your HLE is expiring in seven days, you must submit a fresh application, together with the supporting documents for the HDB’s review.
Alternatively, you may log in to My HDBPage using your SingPass to request for a cancellation of the current HLE letter. After the current HLE letter has been cancelled, you may then submit a fresh application along with the supporting documents.
Have you booked a flat, but have not yet signed the Agreement for Lease? If so, you do not need to apply for another HLE even if it has expired.
4. When Applying to Take Over the Ownership of a Flat (by way of transfer)
Before the transfer of flat ownership application, you must ensure that you can meet the eligibility criteria and fulfil one housing scheme to take over the flat.
You would also need to assess whether you have sufficient finances for the monies required for the transfer of ownership.
A mortgage loan is required if your available CPF Monies for Housing and any available cash is not sufficient to pay the amount of monies required. A valid HLE letter will then effect the transfer of ownership.
Take note that if you are not eligible for a loan from the HDB, you would have to get financing from private banks or other financial institutions.
Talk to our mortgage specialists with over 30 years of experience and get the best home loan across all banks suited to your needs.
Are you ready to buy your dream home? Here’s a step-by-step guide when buying a resale flat for Singapore Citizens. If you are a Singapore Permanent Resident (SPR), you need to be an SPR for at least three years to buy an HDB flat.
If you need assistance when buying a resale flat, save on agent fees by engaging our in-house property agents from $2,288