Do apply early as you need to have a valid HLE letter when you:
- Book a new flat^ from HDB*#
- Obtain an Option to Purchase from a resale flat seller
- Apply to take over the ownership of a flat (by way of transfer)
^ There is no mortgage loan financing for the purchase of a 2-room Flexi flat on short lease. You will have to pay for the flat using your cash and/ or CPF savings.
* Eligible first-timer couples who are full-time students or National Servicemen, or have completed their studies or National Service in the last 12 months before their flat application may defer the income assessment for an HDB housing loan and Additional Housing Grant/ Special CPF Housing Grant till just before key collection.
# Applicants without a valid HLE letter when they book a flat will not be eligible to apply for an HDB housing loan later on.
About the HLE letter
Knowing the housing loan amount will help you to work out your budget to buy, or take over ownership of a flat. The HLE letter is a financial planning tool, and will provide information on the:
- Eligible loan amount
- Monthly instalments
- Repayment period
- Amount of cash proceeds from disposal of the existing or previous flat to be used to pay for the next flat (if applying for second HDB concessionary housing loan)
- Other terms and conditions
Validity of HLE letter
It will be 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 family members. A week before expiry of the HLE letter, you may apply for a new one if you still need 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 and purchase/ take over the ownership of a flat
- You and your family members listed in the application do not comply with any of the terms and conditions to buy a flat and/ or take an HDB housing loan
- There are any changes in HDB policies which may affect your eligibility to buy a flat and/ or take an HDB housing loan
If you have purchased an uncompleted flat from HDB, we will review your financial position nearer the completion of the flat. This is to confirm that there is no change in your ability to service the housing loan.