HOUSING & DEVELOPMENT BOARD


Dear KEO

Implementation of HDB Flat Eligibility (HFE) Letter


           Today, HDB implemented the new HDB Flat Eligibility (HFE) letter, 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, which will replace the current HDB Loan Eligibility (HLE) 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.

2         As shared with you in our circular of 28 Apr 2023, flat buyers must have a valid HFE letter, from 9 May 2023, 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.

We also shared with you the transitionary arrangements made for the various groups of resale flat buyers who have a valid Intent to Buy and/or HLE letter and that we had also notified them individually of these arrangements.    

3         In tandem with the implementation of the HFE letter, HDB will (among others):


a) Standardise the income assessment period to 12 months (where income months are available), instead of the most recent three or six months. This will enable a more consistent assessment across applicants, who may have jobs with different work nature and remuneration structures. It will also provide a clearer assessment of an applicant’s income level, especially for those whose income fluctuates from month to month. 

b) Streamline the assessment of household eligibility for housing subsidies based on the core family nucleus, which is formed by the core applicant(s) and core occupier(s). These are the applicant(s) and occupier(s) who enable the household to meet the eligibility conditions for the flat purchase. All members of the core nucleus, including core occupiers, will enjoy the housing subsidy, and the housing grants will be shared among the core nucleus, for first time applicants. Correspondingly, second-timer applicants in the core family nucleus who had previously enjoyed a housing subsidy will now be required to pay their resale levy before collecting the keys to their second subsidised flat. 

4         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