What is a Resale HDB Flat?
A resale flat is a public housing unit sold in the open market by an existing flat owner. This is different from a Build-To-Order (BTO) flat, which is purchased directly from HDB and usually involves a waiting time of 3–5 years.
Step 1: Check Your Eligibility
Before you begin the process, make sure you meet the eligibility conditions. Here are some of the key criteria:
For Singapore Citizens and PRs:
Must be at least 21 years old
Applying under one of HDB’s schemes such as Public Scheme, Fiance/Fiancée Scheme, or Single Singapore Citizen Scheme
Income ceiling may apply if you're applying for CPF Housing Grants
For Singles:
Must be at least 35 years old (if unmarried or divorced)
Can only buy a 2-room flat in a non-mature estate (for BTO), but for resale, any flat size is allowed
Step 2: Plan Your Budget
Buying a resale flat involves more than just the selling price. Here's what you should consider:
Flat price
Option to Purchase (OTP) deposit (usually $1,000 to secure the unit)
Cash Over Valuation (COV) — This is the amount you need to pay in cash if the resale price is higher than HDB’s valuation
Legal fees & stamp duties
Renovation costs (if any)
Also, check if you're eligible for any CPF Housing Grants, such as:
Family Grant (up to $80,000)
Enhanced CPF Housing Grant (EHG)
Proximity Housing Grant
Step 3: Start Searching for Your Ideal Flat
Use HDB’s Resale Flat Portal, property listing websites, or engage a real estate agent to help you.
When shortlisting, consider:
Location (close to MRT, schools, parents, workplace)
Size and layout
Flat condition
Remaining lease (flats with less than 60 years may affect CPF usage and loan amount)
Step 4: Arrange for Flat Viewings
Try to view the flat in person before making any decisions. Look out for:
General condition of the unit
Wear and tear, mold, plumbing issues
Orientation and sunlight
Noise levels
Also ask the seller about:
Past renovations
Reason for selling
Neighbors and amenities in the area
Step 5: Negotiate and Secure OTP
Once you’ve found the right flat:
Negotiate price with the seller
Obtain the Option to Purchase (OTP) from the seller (valid for 21 days)
Pay the option fee (usually between $1 – $1,000)
You’ll use this time to:
Get an HDB valuation report (this affects how much CPF or loan you can use)
Finalize your financing (HDB loan or bank loan)
Prepare to exercise the option
Step 6: Exercise the Option
Within the 21-day OTP validity period:
Pay the Option Exercise Fee (up to $4,000 including earlier OTP fee)
Sign the OTP form and submit it through the HDB Resale Portal
At this stage, you’ll also need to:
Choose whether to use an HDB or private lawyer
Submit necessary documents (e.g., ICs, income, grant applications)
Step 7: HDB's Approval and Processing
After submission, HDB will:
Review your application
Schedule a Resale Completion Appointment
Calculate the final payments needed
This whole process typically takes 8–10 weeks from submission.
Step 8: Resale Completion Appointment
At the final appointment:
Both buyer and seller sign the necessary documents
Remaining payments (like stamp duty) are settled
You’ll receive the keys to your new home
Congratulations — you are now the official owner of your resale HDB flat!
Additional Tips for First-Time Buyers
Use CPF Wisely: Make sure you know how much CPF you can use, especially for older flats.
Loan Type Matters: HDB loans have a lower downpayment (15%) but slightly higher interest rates than bank loans.
Be Aware of Lease Decay: Older flats with less than 40 years remaining lease may not be a good long-term investment.
Grants Are a Bonus: Explore all possible grants to reduce your upfront cost.
Conclusion
Buying a resale HDB flat in Singapore is a well-structured process, but it requires good planning, due diligence, and understanding of the steps involved. The resale market offers more flexibility in terms of location and size, and with proper guidance, it can be a rewarding experience for both first-time homeowners and seasoned buyers.
If you’re ready to start your property journey, the resale market offers plenty of opportunities to find your dream home — without the long wait.
