Conversion Scheme Application Procedure

To buy or convert adjoining 3-room or smaller flat(s) under the Conversion Scheme, you will need to do the following:

• Contact us to confirm whether pairing the 2 flats is possible
• Check what needs to be done in terms of financing
• Convert the 2 flats into 1 unit

In addition, please note the conditions for selling, as well as how the upgrading costs are calculated for your converted flat.

Contacting us to confirm if pairing the flats is possible

• Download this Enquiry on Combination of Flats under the Conversion Scheme application form
• Complete the form and submit it to our Resale Operations Section
• We will assess the flats and inform you on whether pairing the flats is possible. If so, you can then proceed with the purchase

Checking what needs to be done in terms of financing

• If you are buying 2 adjoining flats, you can treat them as a single unit when applying for financing, i.e. a single housing loan covering both flats
• If you are buying a flat adjoining your current unit and you are servicing a housing loan, that loan must first be discharged
• The adjoining flat can be financed following either of these steps:
  • If the adjoining flat is to be financed with a bank loan:
    • Check with the bank on the new total loan amount, i.e. how much is needed to discharge your current loan and purchase the adjoining flat
    • Ensure that the outstanding HDB/ bank loan for your existing flat is discharged before you purchase the adjoining flat
  • If the adjoining flat is to be financed with an HDB housing loan, and the current flat is financed with a bank loan:
    • The HDB housing loan will only be for the amount needed to purchase the adjoining flat, and not for the discharge of your current housing loan
    • You will need to check with the bank on how to discharge the loan for your current flat, and ensure that you do so before you purchase the adjoining flat

Converting the 2 flats into 1 unit

Upon completing the purchase of the adjoining flat(s), the adjoining flats must be converted into a single unit by doing the following:

• Engage a renovation contractor from the Directory of Renovation Contractors to construct at least 1 opening of at least 1 metre by 2 metres between the 2 units
• Engage a licensed contractor to remove the PUB meters (electricity, water, and gas supply) for 1 of the 2 units

You can retain your existing flat number for the converted flat.

Conditions for selling the converted flat

• You can sell the converted flat:
  • After fulfilling the Minimum Occupation Period from the date the flat(s) purchase is completed
  • In accordance with the prevailing resale policy
• If you bought 1 adjoining flat and your original flat was bought from HDB, you will be treated as having sold a flat and are required to pay the resale levy when you sell the converted flat
• If you bought 1 adjoining flat and your original flat was the second flat bought from HDB, you will no longer be eligible to buy another flat from HDB
• Upon converting the adjoining flats, you cannot later sub-divide the converted flat for sale, transfer, surrender, etc.

Payment of upgrading costs for the Main Upgrading Programme (MUP)

• If the purchase is completed before MUP polling:
  • You will have to pay the upgrading cost based on the re-designated flat type, i.e. converted flat
• If the purchase is completed during or after MUP polling:
  • You will have to pay the upgrading cost based on the total upgrading cost for both flats
  • As each Singapore Citizen household is only allowed to receive 1 upgrading subsidy, the subsidy for the second flat will be reduced. This applies even if you have not previously received an upgrading subsidy
  • If the precinct has voted to have a Space-Adding Item under the MUP, you will have to pay for the 2 additional space-adding items