HFE letter streamlines eligibility checks for flat purchase, housing grants and HDB housing loans into one single application

From 9 May 2023, HDB will introduce a 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^[1].

Simpler and more convenient process for flat buyers

2 Currently, HDB assesses flat buyers’ eligibility for flat purchase, CPF housing grants and HDB housing loans at different stages of their home buying journey, as follows:

	Assess Eligibility for:
	1. Flat Purchase	2. Housing Grants	3. HDB Housing Loan
New Flat	At flat application	At flat booking	At HLE letter application (before booking a flat)
Resale Flat	At flat application	At flat application	At HLE letter application (before obtaining an Option to Purchase)

At each assessment, flat buyers must provide the relevant supporting documents (e.g., pay slips and CPF statements) to HDB for verification. Also, when they apply for a new flat or secure the purchase of a resale flat, their eligibility for the flat purchase and housing grants have yet to be confirmed. This may lead to some uncertainty among flat buyers on their housing budget.

3. With the new HFE letter, HDB will streamline the flat buying process by integrating the different eligibility assessments for HDB flat purchases, housing grants, and HDB housing loans into a single application through the HDB Flat Portal. This will bring about more certainty and convenience to flat buyers. With greater clarity upfront on their housing budget and financing options, flat buyers will also be able to make more informed and prudent decisions in their home purchase.

4 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.

There will be transitionary arrangements made for various groups of home buyers/applicants. Please refer to Annex A for the administrative details for new and resale flat buyers at various stages of their home-buying journey.

How to apply for an HFE letter

5 There are two steps to the HFE letter application, which must be completed within 30 calendar days of each other.

Step 1: Preliminary HFE Check

Flat applicants will need to log in to the HDB Flat Portal using their Singpass to retrieve their personal particulars from Myinfo and declare information, including household income and ownership of private properties. Based on the information provided, HDB will provide applicants with an instant preliminary outcome, which gives them a quick overview of their household’s eligibility to purchase a flat, receive CPF housing grants and take up an HDB housing loan. Applicants with a firm intent to buy a flat may proceed to the next step to apply for an HFE letter. They can do so either immediately in the same session after completing step 1, or within 30 calendar days of starting step 1.

Step 2: Apply for an HFE Letter

To apply for an HFE letter, all applicants and occupiers (where applicable) will need to log in to the HDB Flat Portal using their Singpass to retrieve their personal particulars from Myinfo and fill up the application^[2]. They will also be guided to upload the supporting documents, where required. Within 21 working days^[3] of HDB’s receipt of the completed application, applicants will receive the HFE letter informing them of their eligibility to purchase a new and/or resale flat, as well as the amount of CPF housing grants and HDB housing loan that they are eligible for. Applicants will be notified via SMS to log in to the HDB Flat Portal when their HFE letter is ready. The HFE letter will be valid for 6 months from the date of issue. See Annex B for a sample of the HFE letter.

Other Key Enhancements to HDB Flat Portal

6 In addition to the HFE letter, HDB will also be rolling out several improvements to the HDB Flat Portal, as part of its continual efforts to streamline the home-buying journey (please refer to Annex C for more details).

(i) Integrated loan application service with participating financial institutions (FIs)

7 Currently, the HDB Flat Portal provides information on housing loans offered by both HDB and participating FIs^[4]. Flat buyers who wish to take out a loan with the FIs for the purchase of their HDB flat will need to approach the individual FIs to apply for an In-Principle Approval (IPA) and Letter of Offer (LO)^[5] separately. With the enhanced integrated loan application service provided within the HDB Flat Portal, flat buyers will be able to go a step further to request an IPA and LO from the participating FIs. Flat buyers can concurrently request an IPA from the participating FIs to find out their eligibility for a housing loan, when they apply for an HFE letter. After securing a flat, buyers may also request a LO from their chosen FIs through the HDB Flat Portal.

(ii) Guided journey for new flat buyers

8 Currently, new flat buyers access MyHDB Page to view their flat application details and upcoming appointment dates with HDB. Going forward, flat buyers who have obtained an HFE letter and intend to buy a flat from HDB will continue to be guided on their home buying journey through the HDB Flat Portal. Flat buyers 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 flat is ready, flat buyers can also book their preferred appointment slot to collect their keys through the same platform.

(iii) Integration of HDB Resale Portal with HDB Flat Portal

9 The HDB Resale Portal will be integrated into the HDB Flat Portal for greater convenience. Resale flat sellers and buyers will thus transact via the HDB Flat Portal and be guided step-by-step on their journey to complete their transaction seamlessly.

Date of Implementation

10 The HFE letter will be implemented on 9 May 2023, alongside the new features on the HDB Flat Portal. The HDB Flat Portal can be accessed via the following link, HDB InfoWEB or through scanning the QR code below.

[1] Second-timers will also be advised on the resale levy/premium payable for the purchase of a second subsidised flat from HDB, if they are eligible for one.

[2] The information provided by the applicants in step 1 will be populated for their confirmation. If there are any changes to the information provided, the applicants may have to start step 1 afresh.

[3] The processing time of an HFE letter application is up to 21 working days. It is expected to be longer during peak periods, such as in the months of and before a sales launch. Flat buyers are advised to apply for an HFE letter early.

[4] The 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.

[5] The FIs will liaise with the flat buyers directly on the outcome of their IPA and LO applications.

New HDB Flat Eligibility (HFE) Letter to Provide Flat Buyers with Holistic Assessment of Housing and Financing Options