HFE, which stands for HDB Flat Eligibility, is a brand new acronym so as to add to your HDB playbook.
Beforehand, on the subject of shopping for an HDB flat, your eligibility to purchase, obtain HDB grants and take up the HDB housing mortgage are assessed at completely different levels.
The excellent news is which you can now look ahead to a extra streamlined course of. Come 9 Could 2023, you’ll simply want to use for the HDB Flat Eligibility (HFE) letter. With this new course of, your eligibility on these three features will simply be assessed as soon as.
It should additionally substitute the HDB Mortgage Eligibility (HLE) letter, which you’ll want once you ebook a flat (for a brand new flat like a BTO) or earlier than you get an Choice to Buy (for a resale flat).
What you may see from the HDB Flat Eligibility (HFE) letter
The HDB Flat Eligibility (HFE) letter will inform you in your eligibility:
And for second-timers, HDB will inform you at this stage on the resale levy to pay in the event you’re eligible to purchase a second subsidised flat.
Listed below are situations through which you need to pay the resale levy.
|First HDB flat||Second HDB flat||Must pay resale levy?|
|BTO/ SBF/ open reserving||BTO/ SBF/ open reserving||Sure|
|BTO/ SBF/ open reserving||New launch EC||Sure|
|Resale flat with grants||BTO/ SBF/ open reserving||Sure|
|New launch EC||BTO/ SBF/ open reserving||Sure|
When to use for the HDB Flat Eligibility (HFE) letter
For the reason that software for the HDB Flat Eligibility (HFE) letter assesses your eligibility to purchase an HDB flat, it’s worthwhile to apply for it on the early stage of your home-buying journey.
Right here’s when it’s worthwhile to apply for the HDB HFE letter:
|When to use|
|New HDB flat (i.e. BTO, SBF or open reserving)||Earlier than BTO, SBF gross sales launch or open reserving|
With these modifications, there will likely be transitionary preparations on this.
Transitionary association for brand new flats (eg. BTO, SBF or open reserving)
When you’ve utilized for a flat by way of BTO, Sale of Stability Flats (SBF) or open reserving earlier than 9 Could 2023, you don’t want to use for the HFE letter.
When you’re shortlisted to ebook a flat, HDB will invite you to use for the HDB Mortgage Eligibility (HLE) letter in the event you’d prefer to take an HDB housing mortgage. You want this letter earlier than you may ebook a flat.
Could 2023 BTO and SBF gross sales train
From the Could 2023 launch onwards, it’s worthwhile to get the HFE letter. Extra particularly, it’s worthwhile to full a preliminary HFE verify to get a preliminary HFE evaluation (extra on this later) earlier than you may submit a BTO software.
So in the event you’re trying to apply for the Could 2023 BTO and SBF, you would possibly wish to full this from 9 Could onwards, earlier than the gross sales train begins this month (which may occur anytime quickly).
After finishing the preliminary verify, it’s worthwhile to apply for the HFE letter inside 30 days and submit supporting paperwork to HDB. You will want this HFE letter earlier than you may ebook a flat.
Gross sales workout routines thereafter (eg. Aug 2023 BTO, open reserving)
For future gross sales train after the Could 2023 BTO and SBF launches, you’ll have to apply for an HFE letter earlier than you may apply for a flat.
Transitionary association for resale flats
From now until 8 Could 2023, you may nonetheless register an Intent to Purchase or apply for an HLE letter. For the reason that Intent to Purchase is legitimate for a 12 months, whereas the HLE letter is legitimate for six months.
After 9 Could 2023, whether or not or not it’s worthwhile to apply for the HFE letter depends upon whether or not you might have a legitimate Intent to Purchase and the HLE letter.
You probably have a legitimate Intent to Purchase
You don’t want to use for the HFE letter if you have already got a legitimate HLE letter.
In any other case, in the event you’re taking an HDB mortgage, it’s worthwhile to apply for the HFE letter earlier than getting the Choice to Buy (OTP) from the vendor.
|Have a legitimate HLE letter?||Sure||No|
|Subsequent steps||Can proceed to get OTP from vendor and submit the resale software||If taking HDB mortgage: apply for HFE letter earlier than getting OTP from vendor and submitting the resale software
If taking financial institution mortgage or not taking any mortgage: can proceed to get OTP from vendor and submit the resale software
(We break down the professionals and cons of taking an HDB mortgage vs financial institution mortgage right here.)
When you plan on taking a financial institution mortgage as an alternative, you’ll have to use for the In-Precept Approval (IPA), which may be carried out throughout the HDB Flat Portal from 9 Could onwards. That is supplied you’re making use of from both of the next banks and monetary establishments:
- Hong Leong Finance
- Sing Investments & Finance
When you don’t have a legitimate Intent to Purchase
You will want to use for the HFE letter earlier than getting an OTP from the vendor and submit the resale software.
The way to apply for the HDB Flat Eligibility (HFE) letter
There are two steps to this, which you need to full inside 30 days of one another.
Step 1: Preliminary HFE verify
First, it’s worthwhile to log in to the HDB Flat Portal together with your Singpass. The portal will retrieve private particulars from Myinfo. At this stage you’ll additionally must declare info comparable to your family earnings and whether or not you personal any personal properties.
(Observe that you simply’re not allowed to personal a non-public property once you purchase an HDB flat. You’ll should dispose of it 15 months earlier than shopping for a resale flat, or 30 months earlier than shopping for a brand new flat from HDB.)
HDB will then present an prompt preliminary overview of your eligibility to purchase a flat, obtain CPF grants and take an HDB mortgage.
When you want to proceed with shopping for an HDB flat, you’ll must go to the following step, which is to use for the HFE letter. You are able to do this straight after, or later (inside 30 days).
Step 2: Apply for HFE letter
At this stage, all candidates and occupiers must log in to HDB Flat Portal with Singpass to retrieve private particulars from Myinfo and refill the appliance.
This implies in the event you’re making use of for a 3Gen flat within the Could 2023 Bedok BTO (it’s worthwhile to checklist a minimum of one Singaporean or PR mum or dad as an important occupier), it’s worthwhile to get your mum or dad(s) to log in to Singpass to refill the appliance as properly.
At this stage, chances are you’ll must add supporting paperwork.
HDB will inform you of your eligibility to purchase a brand new flat or resale flat, quantity of CPF grants and HDB housing mortgage inside 21 working days.
You’ll be notified of this by way of SMS when it’s prepared. Just like the outdated HLE letter, the HFE letter will likely be legitimate for six months.
Right here’s how the HDB HFE letter appears like:
HDB expects the HFE letter processing time to be longer through the month of a gross sales launch (i.e. February, Could, August and November for BTO). So in the event you’re set on shopping for a BTO flat as soon as the placement particulars are out, you would possibly wish to apply for the HFE letter early.
When you discovered this text useful, 99.co recommends Sale of Stability Flats 2023, What it’s worthwhile to learn about HDB’s Sale of Stability Flats (SBF) in 2023 and 14 reasonably priced properties inside 1km of prime main faculties in Singapore.