Okay, here’s another sign that you’re officially an adult. You’re getting a house!
When the time comes, you and your other half will be building your cosy nest in Singapore.
Getting your BTO flat is no fun unless you’re passionate about planning and filing things. Be prepared for checking lots of requirements, assessing your budget, and short-listing apartments. You’ll also have to choose the right type of loan for your needs and ensure all your paperwork is in order.
Otherwise, you might miss the chance of securing your BTO flat.
Let’s simplify things!
Read the article below to understand the BTO application process. We’ll discuss all eligibility requirements, paperwork, and how the entire process rolls. We’ll also tell you which grants and subsidies you can choose, so read on!
You need to meet several requirements to get your BTO flat:
|Citizenship||You and/or your spouse have to be Singaporean or PR.|
|Age||The minimum age is 21 years old.|
|Income cap||Each type of flat has an income limit. The current limit is $14,000.|
|Family type||You can qualify for different programs depending on your family status:
- Public Scheme
- Fiancé/Fiancée Scheme
- Orphans Scheme
|Other properties||You and your occupants aren’t allowed to:
- Own other properties in Singapore or abroad for a minimum of 30 months before you apply
- Invest in private residential properties for at least five years
- Own new property such as HDB, DBSS, and EC
- Own a previous CPF Housing Grant
List down your budget to ensure you can afford the flat. Your spreadsheet should include your:
Deduct your expenses from your income.
Now, make sure the remaining sum can cover the costs of your HDB flat, such as:
If this sounds complicated, you can use an online budget calculator.
Here are other expenses to consider before applying for your BTO flat:
|Stage||BTO flat from HDB||DBSS or EC from the developer|
|Application||$10||Depends on the developer|
|Booking your flat||Option fee||Option fee (5% of your flat’s price)|
|Signing||- Stamp duty|
- Advance payment
|- Stamp duty and legal fee (1-3%)
- Advance payment
|Getting your keys||- Stamp duty|
- Legal fees
- Home Protection Scheme
- Fire Insurance
- Purchase price balance
|- Home Protection Scheme
- Fire Insurance
- Other potential costs the developer may require
Pro tip: If you want an HDB loan, you should apply for the HLE letter to ensure you’re eligible. You’ll need this when you choose the right flat.
The alternative is to get a bank loan. Ensure the bank gives you the Letter of Offer, which you’ll need for your lease agreement.
Check the list of BTO launches to get the right one for your needs. If you get the wrong one and change your mind, you’ll have to pay a generous fee.
Here’s what you need to consider:
Pro tip: Use HDB’s eAlert Service to receive useful updates.
Here are the upcoming BTO launches are in the following neighbourhoods:
Although there’s a one-week period to receive BTO applications, don’t hurry. All applications will be reviewed. However, you’ll have to pay a $10 charge to apply.
You can apply here.
Pro tip: Want more chances to score the flat of your dreams? Assess potential priority schemes to see if you’re eligible:
Priority Scheme Who’s it for?
Parenthood (PPS) Married people with underage children
Multi-generation (MGPS) Parents and married children
Married Child (MCPS) Married kids who need to live nearby elderly parents
Third Child (TCPS) Couples with two+ children
Assistance Scheme For Second Timers Divorced or widowed people with underage children who want to leave nearby their parents
About one week after the application period ends, you’ll know whether you’ve won the ballot or not. If you do, you’ll get a queue number.
A low number means you’re among the prioritised people. And that means you have more choices.
If you don’t win the ballot, you’ll need to apply again.
Pro tip: HDB offers extra ballot chances if you’ve lost the ballot two times. However, you have to be a first-time applicant.
Now that you’ve got your shot at a flat let’s see how you can pay for it. Let’s analyse bank vs HDB housing loans:
The first appointment is when you bring all the required documents. Don’t forget your ID and your appointment letter!
Next, you’ll select and book the flat you want from the ones that are still available.
Pro tip: Save time at your appointment and select several alternatives before it. Here’s how you do it:
Warning: You’ll have to fork out an option fee for the flat you’ve selected. This fee is:
Here’s what happens to your option fee depending on the type of loan you’re getting:
The next step is your CPF housing grant application. You can choose the right one according to your needs. The sum you’ll get depends on your gross income per month. Read more about these grants here:
During the second appointment, you’ll sign the lease agreement and pay the fees. Here’s what these steps entail:
Signing the lease requires certain documents:
Paying the fees entails:
Your advance payment depends on the type of loan you’re taking:
Pro tip: Use HDB’s Staggered Downpayment Scheme to break down the advance payment into two instalments.
This solution is best if you have a limited budget. You’ll pay the first instalment with your lease agreement and the second when you get your keys.
This is the easy part. When your apartment is ready, HDB will let you know that you can collect the keys.
However, if you’re enrolled in the Staggered Downpayment Scheme we discussed above, you’ll have to reimburse the second advance instalment.
The jiggling sound of your keys brings with it the alarm bell for your monthly loan instalments. These sums depend on:
Use an online mortgage calculator to assess how much you’ll have to fork out each month.
After reading our guide, we’re confident you know everything about how to apply for BTO. The application process includes lots of planning, double-checking conditions, and shortlisting apartments.
And perhaps with the right family budgeting, you will be raising a little one soon!
Make sure you have enough money to afford your flat, with all the entailed bills and instalments. Don’t compromise on your dream home, though. Browse HDB’s list of flats in advance to secure one you’ll love.
Not sure how to budget your expenses?
We’ll help you with affordable loans for your down payment and renovations. Get yours here.
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