Buying a resale HDB flat can be a complex process, but by following these steps, you can ensure a smooth and stress-free experience.
Step 1: Eligibility Check
Before buying a resale HDB flat, make sure you meet the eligibility criteria for one of the schemes.
Step 2: Financial Planning
Home buying is a long-term financial commitment, so it is essential to assess your budget carefully. Consider getting an HDB loan eligibility letter (HLE) to determine the loan amount you are eligible for, or approach a bank for a loan assessment if you plan to take a housing loan.
Step 3: Finding the Right Flat
To find a flat that suits your needs, you can search through advertisements in newspapers and online, or engage a salesperson. When viewing a flat, remember to check its eligibility under the ethnic integration policy (EIP) and Singapore permanent resident (SPR) quotas, and compare its resale prices with other comparable flats in the area.
Step 4: Option to Purchase
After you and the flat seller agree on the resale price, the seller will fill out an HDB option to purchase form, and you will pay a negotiable option fee. Once the form is signed, the seller is committed to selling the flat to you and cannot offer it to another buyer unless you choose not to exercise your option within 21 days.
Step 5: Valuation Report
Apply for a flat valuation the next working day after you receive the option to purchase. A valid valuation report is required if you are taking an HDB loan, a housing loan, or using CPF funds to buy the flat. The report will be used to calculate the amount you can withdraw from your CPF savings, the housing loan amount, and the minimum cash payment required.
Step 6: Resale Checklist for Buyers
Before you exercise your option to purchase, make sure to complete the resale checklist for buyers.
Step 7: Exercise the Option
You have 21 calendar days to decide whether or not to exercise your option to purchase. If you choose to buy, sign the option to purchase form within 21 days and pay a deposit, which combined with the option fee, should not exceed $5,000.
Step 8: Submit the Resale Application
You and the flat seller must submit your resale applications within 7 days of each other, and within the agreed time frame. You can submit your application through e-Resale or the Estate Agent Toolkit, and you will need to provide the required documents, including a valid HDB loan eligibility letter or a letter of offer and acceptance from a bank.
By following these steps, you can buy your dream resale HDB flat with confidence.