HOUSING & DEVELOPMENT BOARD


Dear KEO

New HDB Flat Eligibility (HFE) Letter


Today, HDB announced the introduction of a new HDB Flat Eligibility (HFE) letter from 9 May 2023, to provide flat buyers with a holistic understanding and assessment of their housing and financing options before they commence their home buying journey.  The HFE letter will inform flat buyers upfront of their eligibility for a new or resale flat purchase, CPF housing grants, and HDB housing loan, including the respective grant and loan amounts.  It will replace the current HDB Loan Eligibility (HLE) letter, and the Intent to Buy (ITB) for resale flat buyers.


From 9 May 2023, flat buyers must have a valid HFE letter when they:

a)     Apply for a flat from HDB during a sales launch or open booking of flats; or

b)     Obtain an Option to Purchase (OTP) from a flat seller, as well as when they submit a resale application to HDB.


With the implementation of the HFE letter, the transitionary arrangements made for various groups of resale flat buyers are given below:

a)      Resale flat buyers who do not have a valid ITB – they will need to obtain an HFE letter before they get an OTP from a flat seller and submit resale application to HDB.

b)      Resale flat buyers who have a valid ITB – see table below: 

Does Buyer Have Valid HLE letter?	Next Steps from 9 May 2023
Yes	Proceed to obtain an OTP from a flat seller and submit resale application to buy flat with an HDB housing loan.
No	If taking a housing loan from financial institutions (FIs)* or not taking a housing loan: Proceed to obtain an OTP from a flat seller and submit resale application to HDB. If taking an HDB housing loan:  Obtain an HFE letter before obtaining an OTP from a flat seller and submit resale application to HDB.

Note: *Need to approach an FI to obtain a Letter of Offer, as the integrated loan application service at the HDB Flat Portal will not be available for such a case.


HDB will also send customised emails to those who have a valid ITB/HLE letter on how they may proceed from 9 May 2023.  This will also facilitate your salespersons in guiding their buyer-clients.  

From now to 8 May 2023, prospective resale flat buyers can still register an ITB or submit an HLE letter application if they are ready to start their journey to buy a resale flat.  If they are eligible, their ITB will be valid for one year while their HLE letter will be valid for six months. 

In addition to the HFE letter, HDB will also roll out several improvements to the HDB Flat Portal, as part of its continual efforts to streamline the home-buying journey.  They are:

a)     An integrated loan application service with participating financial institutions (FIs), which allows flat buyers to apply for an In-Principle Approval (IPA) and Letter of Offer (LO) from the six participating FIs1. They can, when they apply for an HFE letter, request an IPA concurrently from the participating FIs to find out their eligibility for a housing loan from the participating FIs. After securing a flat purchase, they can also request a LO from their chosen FIs through the HDB Flat Portal.
1The six participating FIs are: DBS Bank Limited, Hong Leong Finance Limited, Maybank Singapore Limited, Overseas-Chinese Banking Corporation Limited, Sing Investments & Finance Limited, and United Overseas Bank Limited.

b)     Guided journey for new flat buyers, who have obtained an HFE letter. They will receive personalised information on their flat application, which will help them plan and prepare ahead at different stages of their flat purchase journey, such as working out their financial/ payment plans early.  When their booked flat is ready, flat buyers can also book their preferred appointment slot to collect their keys.   

c)      Integration of HDB Resale Portal with HDB Flat Portal for greater convenience.  Resale flat sellers and buyers will transact via the HDB Flat Portal and be guided step-by-step on their journey to complete their transaction seamlessly.


For more details, you may refer to the press release.  Please help to disseminate the information to your salespersons.  Thank you for the partnership and support.


Yours sincerely


Daniel Chan Kian Sen
Director (Resale)
Estate Administration & Property Group