ELIGIBILITY CONDITIONS FOR HOUSING LOAN

HDB Resale Flat

Eligibility Conditions for Housing Loan

The eligibility conditions for an HDB resale flat concessionary housing loan are detailed below. Alternatively, you can also use these enquiry facilities:

  • Eligibility Check – Buying an HDB resale Flat and Applying for an HDB Housing Loan
  • Application for HDB Loan Eligibility letter

Eligibility

You can apply for a HDB resale flat housing loan if you and your essential occupiers meet all these eligibility conditions.

CitizenshipAt least 1 buyer is a Singapore citizen
Household StatusHave not previously taken 2 or more housing loans from HDB
Have taken 1 housing loan from HDB and the last property owned is not a private residential property which may include but is not limited to (regardless of the property's location):
HUDC flat
Property acquired by gift
Property inherited as a beneficiary under a will or as a result of the Intestate Succession Act
Private property
Property owned/ acquired/ disposed through nominees
Income CeilingAverage gross monthly household income does not exceed:

$12,000 for families
$18,000 for extended families
$6,000 for singles buying a 5-room or smaller resale flat, or 2-room new flat in a non-mature estate under the Single Singapore Citizen (SSC) Scheme
If an applicant or occupier is unemployed for fewer than 3 months, the average income will be computed based on the number of actual months the unemployed person has worked
Ownership/ Interest in PropertyMust not own or have disposed of any private residential property in the 30 months before the date of application for an HLE letter. The private residential property includes but is not limited to (regardless of the property's location):
HUDC flat
Property acquired by gift
Property inherited as a beneficiary under a will or as a result of the Intestate Succession Act
Private property
Property owned/ acquired/ disposed through nominees
Do not own more than 1 market/ hawker stall or commercial/ industrial property
If 1 market/ hawker stall or commercial/ industrial property is owned, you must be operating the business yourself, with no other sources of income
Remaining LeaseBuy or take over an ownership of a flat with a remaining lease of 60 years or more
If the flat has a remaining lease of less than 60 years, the HDB housing loan may be reduced or disallowed
Remaining Lease of HDB FlatHDB Housing Loan
60 years or moreAllowed
30 to 59 yearsAllowed, if remaining lease covers the buyer* up to the age of at least 80.

The loan tenure will be the shortest of:

25 years;
65 years minus the average age of the buyers; or
Balance lease at the point of purchase, minus 20 years
20 to 29 yearsAllowed, if remaining lease covers the buyer* up to the age of at least 80.

The loan tenure will be the shortest of:

25 years;
65 years minus the average age of the buyers; or
Balance lease at the point of purchase, minus 20 years
Less than 20 yearsNot allowed
* Based on the average age if there is more than one buyer

The HDB resale flat housing loan amount that you can take depends on credit assessment, loan ceiling, remaining lease of the flat you are buying or taking over, and other HDB policies applicable at the point of the loan application.

Income ceiling for extended family

The average gross monthly household income of extended families is calculated as follows:
CategoryGroup A's Income
(Income cannot exceed $12,000 per month)
Group B's Income
(Income cannot exceed $12,000 per month)
Extended Family Income Ceiling
Parents^ with single childrenParents with 1 working childOther childrenGroup A + Group B must not exceed $18,000
Parents^ with married children+Parents with all single working children, if anyMarried children+ and family (if applicable)

^ Includes widow/ widower or divorcee

+ Includes applicants applying under the Fiancé/Fiancée Scheme

Example

A married couple with 3 working children wishes to get an HDB resale flat housing loan to buy an HDB flat.  Their average gross monthly income is as follows:

Husband = $4,000
Wife = $4,000
Child 1 = $4,000
Child 2 = $2,000
Child 3 = $4,000

Their average gross monthly income as an extended family thus works out as:

Income of Group A

Parents and 1 of the children
Cannot exceed $12,000
Income of Group B

Remaining children
Cannot exceed $12,000
Extended Family Income Ceiling

Group A + Group B must not exceed $18,000
Husband + Wife + Child 2 = $10,000Child 1 + Child 3 = $8,000
$18,000
The family is able to meet the income ceiling for the extended family.

HDB Loan Eligibility (HLE) Letter

To obtain a HDB resale flat housing loan, you need to first apply for an HLE letter before you commit to buy or takeover an ownership of a flat. The HLE letter is valid for 6 months. You are not allowed to apply for another HDB housing loan for 30 months from the date of disbursement of an HDB housing loan.

Do apply for an HLE letter early as you need to have a valid HLE letter when you:

  • Book a new flat from HDB^
  • Obtain an Option to Purchase from a resale flat seller
  • Apply to take over the ownership of a flat (flat transfers)

Note:
^ HDB does not offer a housing loan for the purchase of a 2-room Flexi flat on short lease.  You will have to finance the purchase with cash and/ or CPF savings.

About the HLE letter

Knowing the housing loan amount you can get will allow you to calculate the available amount you have to buy, or take over an ownership of a flat. The HLE letter is a financial planning tool, and will provide information on the:

  • Maximum loan amount
  • Maximum monthly instalments
  • Maximum repayment period
  • Amount of cash proceeds to be used to pay for the next flat (if applying for second HDB concessionary housing loan); and
  • Other terms and conditions

Validity of HLE letter

It is valid for 6 months from the date of issue. There is no need for re-assessment during this period, so long as there is no change in financial position, and the buyers and intended occupiers remain the same. If your HLE letter has expired, you will need to apply for another one.  A week before expiry of the HLE letter, you may apply for a new one if you still require a valid HLE letter.

Review of HLE letter

The loan offer will be reviewed if:

  • Any given information is untrue or incorrect
  • There are any changes in your household income, family nucleus or other circumstances which may affect your eligibility for an HDB housing loan
  • You are buying or taking over an ownership of a flat with remaining lease of less than 60 years
  • You and/ or the occupiers listed in the flat application do not comply with any of the terms and conditions

If you have purchased an uncompleted flat directly from HDB, we will review your financial position nearer the completion of the flat for the housing loan disbursement. This is to confirm that there is no change in your financial ability to service the loan.

HDB LOAN ELIGIBILITY APPLICATION

HDB Resale Flat

HDB Resale Flat Loan Eligibility Application

If eligible for an HDB resale flat housing loan, apply for an HDB Resale Flat Loan Eligibility (HLE) letter and upload the supporting documents online. 

What to prepare?

  • Complete the questionnaire for a preliminary assessment of your eligibility.
  • Ensure all applicants and their spouse(s) have a valid SingPass. If not, you can apply for one at www.SingPass.gov.sg or at any Community Centre.
  • A set of these income and supporting documents.

Where to apply?

  • Apply and upload a copy of your documents at www.hdb.gov.sg/hleapply.
  • Retrieve your draft application if you have saved one within the last 30 days.

How to submit documents?

  • Scan your documents in either PDF or JPG format, and limit each file to below 5MB.
  • If necessary, you can use our scanners at the e-service kiosks available at the HDB Branches, or [email protected] at the HDB Hub.

What happens after applying?

  • We will process the application within 14 days of receiving the full set of documents.
  • You may wish to log in to My HDBPage to view the application status under My Flat > Application Status > HLE.

HDB Resale Flat

INCOME GUIDELINES AND OTHER DOCUMENTS

HDB Resale Flat

Income Guidelines and Other Documents

To process your HLE application, we will require valid income documents for all persons listed in the flat application. If the documents are incomplete, the HLE application cannot be processed. We might also request for other documents to be submitted for our credit assessment.

If you are working overseas, please submit additional income proof such as your employment pass, work permit, business documents, or overseas income tax returns. An official English translation is required if the documents are not in English, Mandarin, Malay or Tamil. 

The following types of income/allowance are not considered for credit assessment:

  • Alimony/ maintenance fee
  • Bonuses
  • Claims/ reimbursement/ expenses
  • Director fees
  • Dividend income/ interest from deposit accounts
  • Income from overtime work
  • National Service allowance
  • Occupier’s income
  • Rental income
  • Scholarship overseas allowance
     

Find out more about the documents you need to submit.

Employed Person (with monthly CPF contribution)

As an applicant:

  • Latest 3 months’ payslips or a recent letter^ from the employer certifying job designation, commencement date, and salaries for the last 3 months; and
  • Latest 15 months’ CPF contribution history 
Note: If your income includes allowance, we will require the latest 12 months’ income statements.

As an occupier:

  • Latest 3 months’ payslips or a recent letter^ from the employer certifying job designation, commencement date, and salaries for the last 3 months
Notes:

* Income tax returns are not acceptable for employed persons.

^ For proof of income, all letters from an employer must have the company letterhead/ stamp, and the name, signature, and designation of the certifying officer.

Employed Person (without monthly CPF contribution)

As an applicant:

  • Latest 12 months’ payslips or a recent letter^ from the employer certifying job designation, commencement date, and salaries for the last 12 months; and
  • Credit Bureau report#; and
  • Latest 12 months’ bank statements/ passbook 

As an occupier:

  • Latest 3 months’ payslips or a recent letter^ from the employer certifying job designation, commencement date, and salaries for the last 3 months
Notes:

* Income tax returns are not acceptable for employed persons.

^ For proof of income, all letters from an employer must have the company letterhead/ stamp, and the name, signature, and designation of the certifying officer.

# A copy of the Credit Bureau report can be requested online, or at any SingPost Branch. Alternatively, you can visit the Credit Bureau Office to obtain a report directly. The Credit Bureau will charge a fee for the report. If you have requested to have your report sent directly to HDB, please submit a copy of the payment receipt for our verification.

Self-Employed Persons

As an applicant:

  • Latest Notice of Assessment from IRAS or Certified Annual Statement of Accounts from an audit firm; and
  • Credit Bureau report#; and
  • Latest 12 months’ bank statements/ passbook 

As an occupier:

  • Latest Notice of Assessment from IRAS or Certified Annual Statement of Accounts from an audit firm
Notes:

# A copy of the Credit Bureau report can be requested online, or at any SingPost Branch. Alternatively, you can visit the Credit Bureau Office to obtain a report directly. The Credit Bureau will charge a fee for the report. If you have requested to have your report sent directly to HDB, please submit a copy of the payment receipt for our verification.

Commision-Based and Part-time Workers

As an applicant:

  • Latest 12 months’ commission statements/ payslips or a recent letter^ from the employer certifying job designation, commencement date, and commissions/ salaries for the last 12 months; and
  • Latest 15 months’ CPF contribution history; and
  • Credit Bureau report#; and
  • Latest 12 months’ bank statements/ passbook 

As an occupier:

  • Latest 12 months’ commission statements/ payslips or a recent letter^ from the employer certifying job designation, commencement date, and commissions/ salaries for the last 12 months;
Notes:

^ For proof of income, all letters from an employer must have the company letterhead/ stamp, and the name, signature, and designation of the certifying officer.

# A copy of the Credit Bureau report can be requested online, or at any SingPost Branch. Alternatively, you can visit the Credit Bureau Office to obtain a report directly. The Credit Bureau will charge a fee for the report. If you have requested to have your report sent directly to HDB, please submit a copy of the payment receipt for our verification.

Odd Job Workers

As an applicant:

  • Latest Notice of Assessment from IRAS or a recent letter^ from the employer certifying job designation, commencement date, and commission/ salaries for the last 12 months; and
  • Latest 15 months’ CPF contribution history; and
  • Credit Bureau report#; and
  • Latest 12 months’ bank statements/ passbook 

As an occupier:

  • Latest Notice of Assessment from IRAS or a recent letter^ from the employer certifying job designation, commencement date, and salaries for the last 12 months
Notes:

^ For proof of income, all letters from an employer must have the company letterhead/ stamp, and the name, signature, and designation of the certifying officer.

# A copy of the Credit Bureau report can be requested online, or at any SingPost Branch. Alternatively, you can visit the Credit Bureau Office to obtain a report directly. The Credit Bureau will charge a fee for the report. If you have requested to have your report sent directly to HDB, please submit a copy of the payment receipt for our verification.

Pensioner

As an applicant:

  • Latest 3 months’ payslips, or a recent letter^ from the previous employer stating the monthly pension received for the last 3 months; and
  • Credit Bureau report#; and
  • Latest 12 months’ bank statements/ passbook 

As an occupier:

  • Latest 3 months’ payslips or a recent letter^ from the previous employer stating the monthly pension received for the last 3 months
Notes:

^ For proof of income, all letters from an employer must have the company letterhead/ stamp, and the name, signature, and designation of the certifying officer.

# A copy of the Credit Bureau report can be requested online, or at any SingPost Branch. Alternatively, you can visit the Credit Bureau Office to obtain a report directly. The Credit Bureau will charge a fee for the report. If you have requested to have your report sent directly to HDB, please submit a copy of the payment receipt for our verification.

Unemployed Persons

If you are unemployed, and currently between 18 and 62 years old, you will need to submit a Statutory Declaration, or a valid Student Pass if you are currently a full-time student. 

The Statutory Declaration can be executed at the HDB Hub Loans Counter, or any HDB Branch. Declarants are required to bring along their Identity Cards. 

In addition, if you have been unemployed for fewer than 3 months, the following documents are required:

  • Income proof for the preceding month(s) from the previous employer stating their gross monthly income and last day of service
  • Latest 15 months’ CPF contribution history 

Important notes for applicants who have taken a HDB loan before

If you have taken an HDB concessionary loan before, and are buying another HDB flat after disposing of the existing one, you will need to submit:
  • Completion statements (showing the breakdown of cash proceeds and CPF refund) for the disposal of the applicant’s and spouse/ fiancée/ fiancé’s last owned HDB flat (if they do not have a current flat)
  • Divorce documents showing the division of the matrimonial HDB flat (if the immediate past HDB flat was disposed of with/ by an ex-spouse)

This applies to both applicants and essential occupiers of the flat application.

MORE INFORMATION ON YOUR HDB HOUSING LOAN

HDB Resale Flat

More Information on Your HDB Resale Flat Housing Loan

Here is useful information on the HDB resale flat loan, which includes the interest rate, the use of CPF savings and required insurance policies.

Details on your HDB housing loan

We will assess your income, age and financial situation to decide the maximum loan that you are eligible for. The HDB resale flat concessionary housing loan interest rate is pegged at 0.1% above the CPF Ordinary Account interest rate. If you buy or take over a flat with a remaining lease of less than 60 years, the HDB housing loan will be reduced or disallowed.

Credit assessment

The maximum housing loan that can be offered will depend on the buyers’ age, monthly income and financial situation.

If you are buying an uncompleted flat directly from HDB, we will review your financial position nearer the completion of the flat for housing loan disbursement. This is to confirm that there is no change in your financial ability to service the housing loan.

You can check our income guidelines to find out about the types of income we assess, and the documents to provide for credit assessment.

Maximum loan quantum

The maximum loan amount that may be offered depends on the following:

  • Maximum repayment period

This is capped at 25 years, or up till the buyer is 65 years old, whichever is shorter.

  • Applicable interest rate

The computation of the maximum loan is based on the prevailing interest rate, which may be revised from time to time. The interest on the HDB housing loan is computed on a monthly basis or such other basis as HDB may decide.

The HDB concessionary housing loan interest rate is pegged at 0.1% above the CPF Ordinary Account interest rate. It is revised in January, April, July and October, in line with the revision of CPF interest rates.

  • Monthly instalments

This is capped at 30% of the applicants’ monthly income.

  • Loan ceiling

For new flats, the loan ceiling is 90% of the purchase price. For resale flats, it is 90% of the resale price or market valuation, whichever is lower.

Flat with balance lease of less than 60 years – Implications on HDB housing loan

The table below explains how the balance lease of a flat that you are buying may affect the HDB housing loan.

 

Remaining Lease
HDB Housing Loan
60 years or moreAllowed
30 to 59 yearsAllowed, if remaining lease covers the buyer* up to the age of at least 80.

The loan tenure will be the shortest of:

25 years;
65 years minus the average age of the buyers; or
Balance lease at the point of purchase, minus 20 years
20 to 29 yearsAllowed, if remaining lease covers the buyer* up to the age of at least 80.

The loan tenure will be the shortest of:

25 years;
65 years minus the average age of the buyers; or
Balance lease at the point of purchase, minus 20 years
Less than 20 yearsNot allowed

* Based on the average age if there is more than one buyer

Using your CPF savings

All the savings in the CPF Ordinary Account must be used to buy or take over an ownership of the flat before an HDB housing loan is granted. However, you are allowed to first set aside your savings in the CPF Ordinary Account to pay stamp duty, registration, and conveyancing fees and premium for CPF Home Protection Insurance. If you buy or take over a flat with a remaining lease of less than 60 years, certain CPF usage limits may be apply.

Use of CPF savings

If you take an HDB housing loan to buy or take over an ownership of a flat, you will have to use all the savings in your CPF Ordinary Account for the purchase or takeover before an HDB housing loan is granted for the remaining amount. This is subject to the CPF withdrawal limits for properties with a remaining lease of less than 60 years.

If you choose to, you can first set aside the amount required to pay stamp, registration, and conveyancing fees and premium for the CPF Home Protection Insurance (if applicable), before using all of the remaining available savings.

Your CPF Ordinary Account savings can be used to pay up to 100% of the Valuation Limit (VL) of the flat. The VL is the purchase price or value of the flat at the time of purchase, whichever is lower. Should you still have an outstanding loan amount when your withdrawals have reached the VL, you may only use the savings in your CPF Ordinary Account to pay for your flat if you have set aside the prevailing CPF Minimum Sum cash component.

More information on the use of CPF savings can be found on the CPF Board website.

Flat with balance lease of less than 60 years – Implications on the use of CPF funds

The table below explains how the balance lease of a flat that you are buying may affect the use of CPF funds.

 

Remaining LeaseUse of CPF Funds
60 years or moreAllowed
30 to 59 yearsAllowed, if remaining lease covers the buyer up to the age of at least 80.

The total CPF usage allowed will be a pro-rated VL, calculated as such:

Ratio of remaining lease when the youngest buyer who can use CPF turns 55, to the lease at the point of purchase.
20 to 29 yearsNot allowed
Less than 20 yearsNot allowed

When yours is a second HDB concessionary housing loan

For a second HDB concessionary housing loan, your loan quantum will be right-sized by utilising the CPF monies refunded and some of the cash proceeds obtained from the disposal of the previous HDB flat. If you have yet to dispose of your existing HDB flat before buying a flat with a second HDB housing loan, you will first be granted a loan at commercial interest rate. The interest will be converted to concessionary rate when some of the cash proceeds from the disposal to repay the housing loan for the next flat purchase.

Right-sizing the quantum for a second HDB concessionary housing loan

The quantum for the second HDB concessionary housing loan will be reduced by the CPF monies refunded and up to 50% of the cash proceeds from the disposal of the existing or previously owned HDB flat. This facilitates financial prudence and prevents over-borrowing.  

The manner of disposal of a flat includes the sale, transfer or surrender of a flat, or by any other method under the Housing and Development Act or any other written law.

HDB reserves the right to determine the amount of proceeds to be used, either by taking into account the manner of holding of the existing/ previously owned HDB flat, or according to any court order that provides for the disposal/ division of the flat. 

Generally, flat buyers can keep the greater of $25,000 or 50% of the cash proceeds (including the cash deposit received), and HDB will take into account the remaining part of the cash proceeds when determining the quantum of the second HDB concessionary housing loan.

If you buy an HDB flat after disposing of the existing one

You and the essential occupier will have to use up to 50% of the cash proceeds from the disposal of the existing HDB flat, and all available funds in your CPF balance to buy the next flat.

If you buy an HDB flat before disposing of the existing one

You will be charged commercial interest rate (pegged to the 3-month average non-promotional interest rate for HDB flats offered by the 3 local banks) for the housing loan to buy the next flat.

The interest rate will be converted to concessionary rate when you have disposed of the existing flat, and have used the CPF monies refunded and up to 50% of the cash proceeds from the disposal to repay the housing loan for the next flat purchase.

Servicing your HDB housing loan

Your instalment payments are due on the first day of the month and can be paid by cash and/ or CPF savings. For partial capital repayment or redemption of the HDB loan, please give us a written notice of at least one month in advance.

Repayment

Payment of the first monthly instalment will start on the first day of the second month, following the month in which the housing loan is issued. Thereafter, it will be due and payable on the first day of every month, until the loan is fully redeemed. You can use your cash and/ or CPF savings to pay the monthly instalments, subject to the prevailing rules of the CPF Board. 
 
A late payment charge will be imposed on any outstanding instalment at the end of the month. Any payment received subsequently will first be used to settle any outstanding late payment charges, followed by other outstanding charges and interests.
 
The balance will then be applied towards the payment of the loan instalment. Payments made using CPF savings will be deducted automatically. You can use set up a GIRO arrangement to deduct the instalments from your bank account.

Partial capital repayment and redemption of loan

During the loan repayment period, you can make partial or full capital repayment of the loan over and above the monthly instalments.

You can submit an application to your HDB branch to make a partial capital repayment of the housing loan. The payment must be made within 1 month from the date of receipt of your application. HDB reserves the right not to accept any such payment, or to accept such payments only if it meets the minimum sum that is determined by HDB.

Please give your HDB branch a written notice of at least one month in advance and make the capital repayment by using your CPF savings and/ or cash. To fully redeem the housing loan, you have to pay the whole of the principal sum and all other monies due to the HDB, including interest up to the date of receipt of payment.

Insurance for HDB housing loans

You will have to purchase these insurance policies when you take an HDB housing loan. These will help to protect you and your loved ones in the case of unforeseen circumstances.

If you take an HDB housing loan to buy or take over an ownership of a flat, you will have to purchase these insurance policies:
  • HDB Fire Insurance Policy
  • Home Protection Scheme (if you are using your CPF savings to pay your monthly loan instalments)

The Home Protection Scheme is a mortgage-reducing insurance scheme administered by the CPF Board. It insures CPF members and their families against losing their home, should the policy holder become permanently incapacitated or pass away before the housing loan is paid up.

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