For some of us, getting a BTO is a huge milestone in life and the start of a new journey especially for those who are getting married! Buying your first home can be exciting yet stressful.
Here are 7 steps to buying a BTO/Sales of balance flat from HDB, we hope you will find this helpful.
1. Finding out your loan eligibility
- HDB loan assessment, called the HLE
- In-Principle Approval from bank(s)
2. Sales Launch
- You may subscribe to the HDB eAlert and receive text notifications when they have new launches.
- Visit the HDB website to find out more on the launch details.
- Apply for a flat that is within your budget ($10 application fee).
- You will get an update of the balloting within the next couple of months via email.
Upon successful balloting
- Congratulations! You’ll be invited to select your unit; log on to your HDB page with your Singpass to find out the appointment date and prepare the necessary documents.
Upon unsuccessful balloting
- Do not be discouraged! Try again during their next launch!
- If you’re taking a HDB loan, book a flat with a valid HLE Letter (HDB will review the HLE again when it’s closer to key-collection date, thus do maintain or improve your financial standing during this 2 to 4 years).
- You will have to pay an Option Fee – $500 for 2-room Flexi flat, $1,000 for 3-room, and $2,000 for 4/5-room and Executive flat.
- Apply for CPF Housing Grants, if eligible.
5. Agreement for Lease
- You’ll be informed to sign the Agreement for Lease approximately 4 months after selecting your unit.
- Make downpayment – 5%*/10% downpayment if you’re taking a HDB loan, 10%*/20% downpayment if you’re taking a bank loan.
- * Staggered Downpayment Scheme available if you can meet the eligibility conditions (can write a separate article for it or direct link to HDB page: http://www.hdb.gov.sg/cs/infoweb/residential/buying-a-flat/new/staggered-downpayment-scheme)
- HLE letter must still be valid if you booked a completed flat.
6. Before collection of keys
- If you are taking a HDB loan, HDB will review the loan amount for loan disbursement during this period, thus do maintain your financial position or make it better.
- If you are taking a bank loan, do apply for your housing loan and sign the Letter of Offer from the bank.
7. Collection of keys
- Sign legal documents.
- Make balance payment if there is a shortfall (5% or 10% if you are on the Staggered Downpayment Scheme).
- Collect keys to new home!
Contact us today for the best mortgage advice!