Do apply for an HLE letter early as you need to have a valid HLE letter when you:
- Book a new flat from HDB^
- Exercise an Option to Purchase for a resale flat
- Apply to take over the ownership of a flat (flat transfers)
^ 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 you can get will allow you to calculate the available amount you have to buy, or take over the 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 over a flat with remaining lease of less than 60 years
- You and/ or the occupiers who form the family nucleus 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.