Guide on Change in Flat Ownership (Not Through a Sale)

Before applying for a change in flat ownership (not through a sale), ensure you do the following:

Step 1: Check proposed owners’ eligibility to take over the flat ownership

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Proposed owners (including current owners who remain in ownership of the flat, and new or incoming owners) must first ensure that they can meet the eligibility criteria and fulfil 1 of the eligibility schemes to take over the flat.

Step 2: Determine amount of monies required to take over the flat ownership

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If the proposed owners are eligible to take over the flat ownership, the current and proposed owners would need to assess whether they have sufficient finances for the following:

• To discharge the existing mortgage loan (if any)
• To refund CPF monies* (including accrued interest) to any current owners who is withdrawing his/ her ownership from the flat
• To pay the fees involved in the transaction

The proposed owners may finance this sum using 1 or a combination of the following:

• CPF monies in Ordinary Account which is available for housing (subject to the Valuation Limit)
• Cash
• Fresh mortgage loan [either from HDB^# (if eligible) or financial institution licensed by the Monetary Authority of Singapore (MAS)]

^#Note: HDB does not grant a loan for the consideration amount ordered by the Court in a divorce situation.  This includes the CPF refund to be borne by the withdrawing owner upon the ownership change.

 

Fees payable would include:

• Administrative fees
• Stamp & registration fees^
• Conveyancing fees^
• Valuation Fee^@

If there is no existing outstanding mortgage loan and CPF refund required, proposed owner(s) may proceed to Step 4.

*It is a requirement by the Central Provident Fund Board (CPFB) (Home ownership > How much do you need to refund into your CPF?) that if any current owners wish to withdraw their ownership from the existing flat, the CPF monies used by the outgoing owner to pay for the flat must be refunded in full to their CPF account with accrued interest.

^The amount payable would depend on the flat type, actual loan amount, and share of ownership being transferred. More information on stamp duties can be obtained from the IRAS website (Other Taxes > Stamp Duty for Property) or by contacting them at 1800-460-4923.

^@A valuation fee is payable by proposed owner(s) who are obtaining an HDB mortgage loan to take over a resale flat. The market valuation is required to determine the maximum loan quantum that can be granted and CPF monies that can be used for the ownership change.

Step 3: Determine the need for a mortgage loan and choose mode of financing

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A mortgage loan is required if:

 

If a mortgage loan is required, the proposed owner(s) can choose to obtain a loan from HDB ^#(if eligible) or from a financial institution^% to take over the flat ownership.

If the proposed owners want to apply for an HDB Loan, they must meet all the eligibility conditions to do so.

The amount of HDB loan granted is subject to the following:

1. Lower of the prevailing loan ceiling or credit assessment; and
2. Full utilisation of CPF monies by the proposed owners

If the amount of loan granted is insufficient to cover the amount of monies required proposed owners may need to raise funds for the shortfall.

Proposed owners can apply for the HDB Loan letter which will provide the following information:

1. Eligibility for an HDB loan
2. Maximum loan amount eligible based on credit assessment
3. Maximum loan repayment period
4. Estimated monthly loan instalment

^#Subject to HDB’s prevailing loan ceiling and credit assessment guidelines. HDB does not grant a loan for the consideration amount ordered by the Court in a divorce situation.  This includes the CPF refund to be borne by the withdrawing owner upon the ownership change. Proposed owner(s) who are not eligible for an HDB loan would have to obtain their mortgage loan from financial institutions licensed by the Monetary Authority of Singapore (MAS).

^%You are advised to check with the financial institutions whether the mortgage loan can be granted for the purpose of ownership change effected without monetary consideration or pursuant to a Court Order. Otherwise, the change in flat ownership would need to be effected by the mode as required by the financial institutions, subject to HDB’s approval.

Step 4: Determine other payments or liabilities to be settled

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Current and proposed owners (including their spouses) are required to settle any payments owed to HDB before applying for the change in flat ownership, such as:

• Outstanding resale levy or sales premium
• Outstanding upgrading cost/ debts
• Other outstanding amounts to pay HDB

HDB reserves the right to reject or cancel any application for the change in flat ownership if payment for the outstanding amounts is not made.

Step 5: Appoint a lawyer

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As a change in flat ownership is a conveyancing transaction, current and proposed owners would need to engage the service of lawyers for the following:

1. To act for the current owners in the change in flat ownership
2. To act for the total discharge of existing mortgage loan (if any)
3. To act for the proposed owners in the change in flat ownership
4. To act for the proposed owners in the fresh mortgage loan (if any)

Applicants may appoint HDB or private lawyers. If HDB is appointed, the current owner(s) and/ or proposed owner(s) will need to attend an appointment at HDB’s office in person to sign the legal documents and make payment for the related fees and charges for the ownership change.

It is at HDB’s discretion to decide whether HDB can act for the parties. The parties need to engage private lawyers if HDB is unable to accept the appointment, or if any of the parties are unable to attend the completion in person.