The Seedly HDB Resale Guide: Your Ultimate Step-by-Step Guide to HDB Resale Application

So…

You want to find out more about the HDB Resale flat buying process.

And how to buy your very own flat.

Welcome to adulthood, my friend.

And as scary as buying such a big-ticket item might sound…

It won’t be, as long as you know how it all goes down.

When it comes to property, I gotchu bruv.

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Your Personal Guide to Purchasing an HDB Resale Flat

Need more help or have a specific property-related question?

You can always ask the friendly Seedly Community for advice!

Paiseh or shy?

You can even ask anonymously too… #justsaying

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HDB Resale vs HDB BTO: Which Should You Choose?

Since you’re reading this, I’m gonna assume that you’re not considering a BTO flat anymore.

Location

Firstly, one of the biggest pluses of going with an HDB Resale Flat, is that you get to choose the location of your flat.

Since you’re not limited by wherever the next BTO project is being launched, you can choose from all over the island.

Accessibility

Standard BTO projects have a wait time of about 3 to 5 years before you get your keys.

An HDB Resale Flat is an HDB flat that is currently owned by someone else — which means that it’s technically available almost immediately.

Depending on how fast the owner can move out and hand over the keys, of course.

Oh, and in order to buy it from them, the Minimum Occupation Period (MOP) of the flat has to be met before the current owner can sell it to you.

The MOP is typically at least 5 years, as long as it’s not in a Prime Location.

So if you pick the right flat and meet an owner who’s ready to vacate his or her own asap, you’ll most likely get your flat faster than your friends who BTO-ed.

Lease

Unlike a brand new HDB BTO which comes with a 99-year lease, the lease on an HDB Resale Flat will depend on how old it is.

The older an HDB flat, the fewer years will be left on the lease.

This is important to take note of because it affects the value of the property.

The amount of HDB grants or loans you can get might also be pro-rated as well.

How Much Does an HDB Resale Flat Cost?

Well… that depends on a variety of factors.

Is it in a non-mature or mature estate? Units in mature estates usually cost more.

What direction does the unit face? Because some people don’t want the sun in their eyes when they step out the door, feng shui and etc.

Which level is the unit on? Units on higher floors usually cost more.

What kind of amenities are nearby?

For example, is the HDB Resale Flat you’re looking at within 1km of a popular primary school?

Yep.

Some parents or parents-to-be will want to live near a popular primary school to make sure that their kids have a higher chance of getting into the school of their choice.

And many are willing to pay a premium for that kind of accessibility.

The same applies to whether the flat is near an MRT station or near major shopping malls and facilities like nursing homes and hospitals.

On top of all of this, you’ll also have to think about the extent of the renovations which your Resale Flat will need.

An older flat will probably need more work so you’ll need to factor that into your renovation costs before moving in.

Things To Consider Before Beginning Your HDB Resale Flat Purchase

Before you even think about whether you would like to live in a mature or non-mature estate.

Or how high you would like your flat to be.

You’ll first want to check your eligibility to buy an HDB Resale Flat by registering your Intent to Buy through the HDB Resale Portal.

FYI: there is no fee for registering, and you’ll get an instant assessment on your eligibility to buy a flat, the grants you can get, as well as whether you qualify for an HDB housing loan

Eligibility Criteria for HDB Resale Flat

To be eligible for an HDB Resale flat:

• At least 1 Singapore Citizen or 2 Singapore Permanent Residents must be listed in the flat application
• The Resale Flat applied must be within the Ethnic Integration Policy and Singapore Permanent Resident quota
• Not own any residential properties or any houses/buildings/land whether locally or overseas, or have disposed of them in 6 months before the Resale Flat application

Your age will also determine what type of HDB flat you can buy.

If you’re buying with an approved family nucleus, you’ll have to be at least 21 years and above.

Buying a flat as a single?

You’ll have to be at least 35 years and above.

On top of all of these considerations, you’ll have to buy a Resale Flat under a specific HDB scheme.

Eligibility Criteria for HDB Resale Schemes

The following eligibility criteria apply to all schemes:

• Income ceiling: there are NO income ceilings but this will matter when it comes to CPF Housing Grants and HDB housing loans
• Ownership of other properties (HDB or Private, Local or Overseas): if you or anyone else in your resale flat application owns any kind of property (whether HDB or private, local or overseas), you will need to dispose of it before or within 6 months of your resale flat purchase

Here’s a look at the various schemes you can apply under as well as the types of CPF Housing Grant which you might be able to qualify for:

What Type of HDB Flat Can I REALLY Afford?

Next, you’ll also need to consider your finances and figure out what type of HDB flat can you afford?

I mean, you wouldn’t want to overstretch yourself and have problems servicing the mortgage when you can’t even put food on the table, right?

How To Choose The Perfect HDB Resale Flat to Buy?

Once you have all of the above sorted, here comes the fun (or tiring, for some) part.

Figuring out how to choose the perfect HDB Resale flat!

FYI: I’ve included a checklist to follow as well as a list of things (and people) that you should bring along during property viewing in the article

How Much Is an HDB Flat Really Worth?

Figuring out how much a flat is worth can be really tricky.

Whether you’re a buyer or a seller, you’ll need to settle on a selling price.

And one of your best guides is to use the HDB Resale Median Price as a gauge.

Once that’s done, you’ll need to get an official HDB valuation in order to determine how much Cash-Over-Valuation (COV) will you get (if you’re a seller).

Or how much COV you’ll need to pay (if you’re a buyer).

How To Buy An HDB Resale Flat

The entire process is really straightforward and can all be done via the HDB Resale Portal.

Yep, you don’t even need to involve a property agent in the process if you don’t want to.

Just follow this step-by-step guide to find out how you can handle the deal yourself!

It’ll take a bit more work (and time) but you can save quite a bit on commission fees if you cut out the middleman!

That’s more money for reno or furniture!

What Is the Maximum HDB Grant That I Can Get?

There’s a myth amongst first-time property buyers that an HDB Resale flat is usually more expensive than an HDB BTO flat.

Well… it might not always be true…

That’s because there are various HDB housing grants like the Enhanced Housing Grant (EHG) that are meant to help keep HDB Resale flats affordable.

FYI: if you’re a first-timer applying for an HDB Resale flat you can get up to $160,000 in HDB grants (depending on your eligibility).

That’s way more than what a first-timer would get when buying an HDB BTO flat.

How Do I Pay For My HDB Resale Flat?

Found an HDB Resale flat that you really like and are ready to commit?

Bank Loan Vs HDB Loan: Which Is Better?

Besides the interest rates, there are plenty of other things to consider when deciding whether you want to finance your HDB flat with a bank loan or an HDB loan.

If you’re going with an HDB loan, you’ll need to get an HDB Loan Eligibility (HLE) Letter as well.

And if you decide to go with a bank loan, you’ll want to check with the banks for the latest fixed and floating rate for housing and mortgage loans.

Now that you understand the entire process and know what to look out for.

Good luck with your house-hunting!