Simple Guide to HDB Flat Eligibility (HFE) Letter

Embarking on the journey to buy an HDB flat involves navigating through various eligibility assessments. As of May 9, 2023, the HDB Loan Eligibility (HLE) letter will be succeeded by the HDB Flat Eligibility (HFE) letter. This letter consolidates all eligibility assessments for prospective homebuyers, simplifying the process and reducing the need for a whole bunch of documents.

The HFE letter facilitates a streamlined application process and a single application provides info into eligibility for:
1. Purchasing a BTO or resale HDB flat
2. Receiving CPF housing grants and determining the grant amount
3. Taking up an HDB housing loan, along with details about the loan amount

The need for an exhaustive submission of documents for eligibility assessment is replaced by a more efficient system. Personal information is retrieved from Myinfo via Singass, subject to your permission, easing the overall process.

For those eyeing their second flat, the HFE letter also sheds light on the resale levy/premium, if applicable.

When to Apply for the HFE Letter

Buying a BTO Flat:
A valid HFE letter is mandatory when applying for a BTO flat during sales launches starting from August 2023 or open booking.

Buying a Resale Flat:
Ensure a valid HFE letter before obtaining an Option to Purchase (OTP) from the HDB seller.

How to Apply for the HFE Letter

Step 1: Complete the Preliminary HFE Check

Log in to the HDB flat portal using Singpass.

Provide your particulars, including other flat applicants and occupiers.

Declare any interest in local and/or overseas private property.

Indicate your intention to take up a home loan (HDB or Bank loan)

Based on the information provided, a preliminary outcome is generated, offering an overview of your eligibility and other relevant details. Accuracy is crucial at this stage, as any changes require starting the process anew.

Step 2: Apply for an HFE Letter within 30 Calendar Days

Select your housing loan option(s).

Access HDB’s loan packages or consider options from DBS, Hong Leong Finance, Maybank, OCBC, Sing Investments & Finance, and UOB.

Confirm eligibility for an HDB housing loan obtained in Step 1.

For bank loans, secure an In-Principle Approval (IPA) to estimate the loan amount.

Provide all required information before the due date.

Review and confirm application details.

Step 3: Get Your Results

Expect the HFE letter within 21 working days from HDB's receipt of your completed application.

An SMS will notify you when the letter is ready for viewing on the HDB Flat Portal.

The HFE letter is valid for 9 months from the date of issue.

Upon receiving the HFE letter, the subsequent steps for both BTO and resale flats involve various financial checks, searching for flats, and completing necessary paperwork.

What’s Next after you receive the HFE Results?

Here’s a simple step by step overview of what the next steps are after HFE.

For BTO:

1.     Initiate the HFE letter application.
2.     Obtain In-Principle Approval (IPA) from your chosen bank if opting for a bank loan.
3.     Commence the search for available flats.
4.     Evaluate your financial readiness.
5.     Submit an online application for a flat during a sales launch.
6.     Await and review the ballot results.
7.     Confirm the booking of the selected flat.
8.     Execute the Agreement for Lease.
9.     Collect the keys and take possession of your HDB flat.

For Resale:

1.     Initiate the HFE letter application.
2.     Obtain In-Principle Approval (IPA) from your chosen bank if opting for a bank loan.
3.     Commence the search for available flats.
4.     Evaluate your financial readiness.
5.     Obtain Option to Purchase (OTP) from the sellers.
6.     Submit an online Request for Valuation within 24 hours from date of Option
7.     Get a Letter of Offer to confirm the bank loan, if applicable.
8.     Exercise OTP and submit the resale flat application online.
9.     Attend the completion appointment at the HDB hub.

The HDB Flat Eligibility (HFE) letter marks a significant advancement in the homebuying process, offering a consolidated and efficient approach to eligibility assessments. Follow the outlined steps to seamlessly navigate the application process and progress toward making that HDB flat yours.

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