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Eligibility Conditions for Housing Loan

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

 

Eligibility

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

Citizenship

  • At least 1 buyer is a Singapore citizen

Household Status

  • Have 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 Ceiling

Average 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 Property

  • Must 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 Lease

  • Buy or take over 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 Flat

HDB Housing Loan

60 years or more

Allowed

30 to 59 years

Allowed, 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 years

Allowed, 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 years

Not allowed

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

These conditions apply for application for an HLE letter from 24 August 2015 for the following transactions:

Transaction Type Cut-Off Date
Purchase of new flats Sales exercises launched from November 2015 onwards
Purchase of resale flats Resale application received from 24 August 2015
Purchase of DBSS flats OTP granted by developer from 24 August 2015
Transfer of flat ownership Transfer application received from 24 August 2015

The actual HDB housing loan that you can take is dependent on credit assessment, loan ceiling, remaining lease of the flat you are buying, and the related conditions for the intended flat purchase. 

Income ceiling for extended family

The average gross monthly household income of extended families is calculated as follows:
 
Category Group 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 children Parents with 1 working child Other children Group A + Group B must not exceed $18,000
Parents^ with married children+ Parents with all single working children, if any Married 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 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 = $10,000 Child 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 get a housing loan from us, you will need to first apply for an HLE letter before you commit to a flat purchase. The letter is valid for 6 months. You are not allowed to apply for another housing loan from HDB within 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
  • Exercise an Option to Purchase for a resale flat
  • Apply to take over the ownership of a flat (flat transfers)

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 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.