Introduction
In May last year, HDB launched the HDB Flat Eligibility (HFE) Letter system in an effort to streamline the public housing buying process for both Build-To-Order (BTO) or resale flats.
The upcoming HFE letter will supplant the existing HDB Loan Eligibility (HLE) letter, providing flat buyers with upfront information regarding their eligibility for purchasing a new or resale flat, CPF housing grants, and HDB housing loans, along with the corresponding amounts for grants and loans.
Simplifying the home buying process
Before the HFE system was implemented, HDB would assess flat buyers’ eligibility for flat purchase, CPF housing grants and HDB housing loans at different stages of their home buying journey, as follows:
At each assessment, flat buyers had to provide the relevant supporting documents (e.g., pay slips and CPF statements) to HDB for verification.
Also, when they applied for a new flat or secured the purchase of a resale flat, their eligibility for the flat purchase and housing grants were not confirmed, which led to uncertainty for buyers.
The introduction of the new HFE letter by HDB aims to shake things up by streamlining the process of purchasing flats by consolidating the various eligibility assessments for HDB flat purchases, housing grants, and HDB housing loans into a single application accessible through the HDB Flat Portal.
This initiative promises to enhance certainty and convenience for flat buyers. With clearer upfront insights into their housing budget and financing options, flat buyers will be empowered to make more informed and prudent decisions when purchasing their homes.
What is in the HFE letter?
The HDB Flat Eligibility (HFE) letter will inform you of your eligibility to:
Buy a new (eg. BTO) and/or resale flat
Receive CPF grants, including the respective grant amounts
Get an HDB housing loan, including the loan amount
And for second-timers, HDB will inform you at this stage of the resale levy to pay if you’re eligible to buy a second subsidised flat.
Sample image of a HFE application letter
How does the HFE application work?
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.
They will also be guided to upload the supporting documents, where required. Within 21 working days 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.
Conclusion
Of course, being a relatively new system, HDB is still working to iron out and improve on the HDB Flat Portal and the entire HFE process. To make your HFE and flat application as smooth as possible, take note of the following:
HDB expects the HFE letter processing time to be longer during the month of a sales launch (i.e. February, May, August and November for BTO).
Since the HFE letter was first implemented, there have been complaints about the long waiting time. So once you’ve decided to buy an HDB flat (whether it’s BTO or resale), you should apply for the HFE letter as soon as you can to minimise any delays!
We hope that this article has helped you to better understand the new application process involving the HFE letter. We wish you all the best in your HFE and flat application this year, and if you require any further information, please visit HDB’s website here.
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