There are four BTO launches per year. One each in February, May, August and November. Before deciding which BTO launch you are going to apply for, you should discuss and plan out with your other half that this is a decision you are both ready to take and commit to!
1) Am I eligible to apply for a HDB BTO flat?
The first thing you need to do is to check your eligibility. Different BTO have different eligibility criteria, so you need to make sure that you and your co-applicant qualify for a BTO first, before you even apply for one. Here a a few quick pointers:
- Citizenship: At least one person applying for the BTO needs to be a Singapore Citizen AND at least one other person applying (if applicable) needs to be a Singapore Citizen or Permanent Resident.
- Income Ceiling: The current income ceiling for a BTO flat is $12,000. This figure may rise up to $18,000 for the extended family/multi-generation family income ceiling, if we’re applying for a 3Gen flat. Check the sales launch to know the exact income ceiling.
- Age: We must be at least 21 years-old at the point of application.
- Be applying with your fiancé(e), and be prepared to register your marriage before taking possession of your flat if applying for additional or special CPF housing grants, or within 3 months of taking possession of flat.
You must also not own any other property, HDB or private, locally or overseas. If you are currently a property owner, you’ll need to dispose of your ownership within 30 months of your application.
You may also complete this survey to check your eligibility!
2) Balloting for your HDB flat
First, you’ll have to check the HDB website regularly for news of upcoming sales launches. From May 2019, BTO launches will be announced 6 months prior rather than 3 months, which will give you ample time to plan for the location you want.
If you are interested in a sales launch, pay $10 to ballot for it. How many tries it takes you to be able to get a queue number depends on your luck! Some people got it on the first or second try, others have to try 10 times! Expect to wait 3 weeks to know if you’ve been successful or not.
3) Obtain a HDB loan – get your HLE letter or your AIP
Now, you’ve probably got a BTO flat booked, it’s time to look for someone to loan you the money to finance your new home. You will need to get all your loan documents in order to sign the lease agreement after.
You have two options to choose from between HDB loan and a bank loan. For those taking up a bank loan, you will want to receive approval in principle (AIP) from your desired bank. An Approval In-Principle is also occasionally known as a pre-approval or in-principle approval for loan. It is an informal non-binding agreement with a bank, on the amount you can borrow and the tenure.
4) Book your BTO flat and pay the option fee
Your queue number given by HDB will determine your priority in choosing a unit. If your queue number is way over the number of units allocated, chances are you won’t be able to get to book a unit, and will have to ballot a new sales launch again.
An appointment date and time will be given that you will need to proceed to HDB Hub to book your flat, don’t forget to bring along your Identity Card, HLE (if you are taking HDB loan) and income documents.
Once you selected your unit, you will need to pay an option fee on the spot, which is refundable when you sign the lease agreement.
2 room – $500
3 room – $1,000
4/5 room – $2,000
5) Signing of Lease Agreement
Within 4 months after booking a flat, you will have to sign the lease agreement with HDB. On the day you sign the least agreement, you will have to pay the downpayment, as well as stamp duties and legal fees.
The amount of downpayment to pay will depend on whether you are taking HDB loan or a bank loan. HDB loan friends will have to pay 10% of the purchase price using cash and/or CPF, where friends taking up bank loan will have to pay 20% downpayment, of which at least 5% must be in cash and the rest can be paid using CPF.
Legal fees and stamp duties
Your legal fees and stamp duty can be paid using a mixture of cash and CPF. The stamp duty rates are as follows:
First $180,000 = 1%
Next $180,000 = 2%
Remainder = 3%
Now after signing the lease agreement, you will have to wait 2 to 3 years for the flat to be built.
6) Collection of Keys
Congratualtions! After the flat is built, HDB will notify you to collect your keys to your new home!