Are you a Singapore Permanent Resident (SPR)? If you wonder whether you can buy an HDB flat in Singapore, the answer is no. There must be two SPR who are at least 21 years old listed in the flat application.
An SPR household is composed of two SPR flat owners. If you and your spouse are both SPR for a minimum of three years, you can buy resale flats from the secondary market; there is no income ceiling for this. You cannot buy Built-to-order (BTO) flats or balance flats during Re-Offer of Balance Flats (ROF) exercises.
Buying an HDB resale flat at the market price involves thorough financial planning, especially for SPR household. You do not qualify for Enhanced Housing Grant, Family Grant or Proximity Housing Grant. The housing schemes and CPF grants to finance the purchase of the flat are extended only to Singapore Citizen households.
Given this, we have outlined a step-by-step guide in buying an HDB resale flat without an agent to save thousands of dollars from your pocket on agent fees.
6 Steps to Buy Your HDB Without an Agent for Singapore Permanent Resident (SPR) Households
Step 1: Register your Intent to Buy
From 1 January 2018, the new HDB Resale Portal will streamline the resale transaction process by integrating all the eligibility checks on a single platform.
Using your SingPass, submit your applications through the new portal and be guided step-by-step on your buying journey.
Once you register your Intent to Buy a flat in the resale portal, your personal details from the Government’s MyInfo service will be used to auto-populate the application forms.
The HDB resale portal will display your eligibility to buy a flat. SPR households cannot apply for HDB Loan Eligibility Letter. At least one buyer must be an SC to be eligible for an HDB concessionary housing loan.
The new HDB Resale Portal will guide resale flat buyers through the following steps:
- Register Intent to Buy
- Search for Suitable Flat and Get OTP
- Choose Mode of Financing
- Request for Value of Flat
- Submit Resale Application
- Acknowledge Resale Documents
- Pay Fees (Online Payment)
- Approval of Resale
- Completion of Resale
Step 2: Determine your budget
Taking into consideration your cash savings and obtainable housing loan to ensure that you have sufficient funds for your HDB purchase.
Get the best mortgage rate across all banks in Singapore with our free mortgage advisory service.
The following tools would help in determining your available budget for your HDB purchase:
- HDB Resale Flat prices will help to generate a better gauge on the price of the property.
- Resale Financial Plan can help to calculate the estimated loans, monthly instalments, stamp duties and conveyancing fees, and check on the remaining lease of the flat you are purchasing.
The buyer would need to have a valid Letter of Offer from the financial institution before entitled to proceed with the purchase.
Step 3: Source for Sellers
Searching for HDB resale flat from the secondary market is no longer as tedious. With Ohmyhome app, even people with no strong Singapore real estate knowledge can find their ideal home.
Buying an HDB resale unit without an agent can definitely be done swiftly!
After determining your available budget, one useful tool to search for resale HDB would be Ohmyhome app. It is available on both Android and iOS devices. Ohmyhome serves as a DIY HDB platform for buyers and sellers to find each other without the help of an HDB agent. This would help save up to $18,000 on agent commissions. What is better is that Ohmyhome is absolutely FREE.
Homeowners would list their property and interested parties would communicate with them directly. Each mobile number could only list a single address, hence buyers would not have to worry that the listings are false. Ohmyhome team would also conduct regular checks to ensure that each HDB listing is authentic.
Ohmyhome is designed to facilitate the HDB buying procedure. On the explore listings page, choose either nearby, by town, MRT, or school.
If you select “Search by School”, you’ll find blue rings on the location map.
A smaller ring of 1km radius is programmed to help parents gauge where to relocate for the enrollment to their children’s schools. For the bigger ring, you can choose between 2km, 3km or 4km. The 4km radius is designed to help buyers that are looking to tap on the Living with/ near Parents Housing Grant.
For buyers who are concerned and feel that they require a professional agent, Ohmyhome provides such HDB Buyer Agent Services fixed from $2,888.
To find out more on the FREE mobile application search Ohmyhome on Facebook and Instagram for constant updates and free goodies. You may also subscribe to Ohmyhome YouTube to get app updates.
Download Ohmyhome app now and find your perfect home.
Step 4: Exercise Option to Purchase (OTP)
The price of the flat and other issues such as what will be included in the sale is to be sorted out before the signing of the agreement.
After you have agreed on the HDB resale price with the seller, the seller will grant a prescribed HDB Option to Purchase (OTP) and would have to refrain from dealing with another another party within the option period. The OTP is granted with an option fee that is decided between both parties that could not be more than $1,000. Buyer will have 21 days to consider and exercise. OTP must be returned to the seller on the 21st day by 4 pm.
Flat buyers who are taking up a housing loan to finance their flat purchase, will need to submit a “request for value” of the flat to HDB to confirm the value that will form the basis for determining the housing loan.
You will need to pay a processing fee of $120 (including GST) to HDB. The Request for Value may only be submitted by the buyer who has been granted an Option to Purchase by the seller of the flat.
The buyer must submit to HDB the Request for Value, together with a scanned copy of Page 1 of the OTP, by the next working day after the Option Date.
HDB will inform the buyers via email once the value of the flat is available in the HDB Resale Portal, typically within 10 working days.
Then the buyer may proceed with exercising the OTP and pay a deposit to the seller that is less than $5,000 (inclusive of the option fee paid earlier).
- Changes in Buyer’s Stamp Duty Rates
- 8 Benefits of Real Estate ITM to Homeowners and Buyers
- Financial Planning when Buying a Home
Step 5: Submit Resale Application
Flat buyers and sellers will complete their respective resale applications in the portal, once the Option to Purchase (OTP) has been exercised (after fulfilling the requirements and paid the remaining deposit of not more than $5,000 inclusive of the earlier paid Option fee).
Both you and the seller have to go on the HDB Resale Portal to submit the Resale Application and supporting documents. Both will also pay an administrative fee (inclusive of GST) of $40 (1-/2-room flats) or $80 (3-room and bigger flats).
Either party can submit the resale application online first but just ensure that the second party would do so within 7 days after which.
Upon receipt of the resale application and supporting documents, HDB will verify the information provided and notify you and the sellers of its acceptance of the application via SMS or email. The status of the application will also be updated in the portal. You and sellers will be notified via SMS to endorse the documents within 6 days and receive a reminder via SMS if you haven’t done so. The application will be cancelled if you and the sellers fail to do so within two days of the reminder.
Once HDB accepts the resale application, HDB computes and sends the buyer’s financial plan to their personalised pages in HDB Resale Portal.
The Buyer needs to do the following:
- Confirm the Financial Plan
- Endorse online forms
- Make the online payment
Flat sellers and buyers will make the payments online. Those who are unable to do so can print the payment advice and make the payment at HDB Hub within 3 days.
The HDB will then grant the resale approval and prepare for completion.
In completing your Financial Plan, it is good to seek advice from the experts.
Ohmyhome has in-house Mortgage Specialists who provide free Mortgage Advisory Service.
It is suitable for property owners intending to sell and buy another property, potential buyers intending to buy their dream home or current property owners looking at refinancing their mortgage loan.
- 3 Must-do Checklist for Home Buyers Before the HDB Resale Completion Appointment
- HDB Resale Completion Appointment: 6 Commonly Asked Questions by Home Buyers Answered
Step 6: Completion Appointment
Once the application is approved, HDB will arrange an appointment for both parties to complete the resale transaction and to sign the necessary documents that require “wet-ink” signatures. The completion letters will be posted on the HDB Resale Portal.
With the streamlined process, flat buyers and sellers will need to attend only one appointment with HDB, instead of two previously. The first appointment will no longer be needed as all forms and checks will be completed via the portal. They will only need to attend the resale completion appointment, either at HDB Hub or at their solicitors’ office.
The entire transaction time, from submission to completion of the resale application takes up to 8 weeks if the buyers and sellers submit the necessary documents promptly.
On the date of HDB resale completion, you have to prepare the cashier’s order. You will also sign the letter of confirmation of the resale flat. This would conclude the resale process.
Ohmyhome understands that DIY may not be for everyone, thus, we are here to help with our trusted agent services if you need more assistance:
Or you may call us at 6886 9009 to secure an appointment today.
- Resale Flats vs BTO Flats: Which Should You Pick?
- 9 Things to Look out for When Buying a Resale Flat
- Why Location is Not the Biggest Factor in Buying Your Next HDB Flat
- How does Proximity Housing Grant affect you?
- 5 Themed Interiors For Your New Home!
While the Information is considered to be true and correct at the date of publication, changes in circumstances after the time of publication may impact on the accuracy of the Information. The Information may change without notice and Ohmyhome is not in any way liable for the accuracy of any information printed and stored or in any way interpreted and used by a user.