Buying your first Build-To-Order (BTO) flat can appear very daunting and be seen as a really troublesome process for many. This is mainly due to the crazy number technical terms one gets thrown at, every time we visit the HDB website or articles online. This ultimately leads to an endless cycle of more research and hours spent.
Purchasing your house should be a very easy process. Here are the steps required to applying for your first BTO.
1. Check Your Eligibility
Complete this survey to check your eligibility.
A quick mental checklist before the survey will be that:
- At least one of the applicants is a Singaporean
- The other applicant is either a Singaporean or a Singapore Permanent Resident.
- Either or both the applicants are 21 years or older
- Your combined income does not exceed $12,000 ( Special cases will be mentioned in description of launch)
- You do not own other local or overseas property
- You have not sold any property within the last 30 months
- You have not bought more than one new HDB/DBSS flat or EC before.
- You have not received more than one CPF Housing grant thus far.
2. Financing Your BTO
Ensure that you have enough to pay the initial cost.
If you are purchasing your flat from HDB:
If you are purchasing a DBSS flat or EC from a developer:
Apply for the HDB loan eligibility (HLE) letter if you are looking to take a loan from HDB. You will need this HLE letter when selecting your flat.
You can also approach your preferred bank for a loan. You will need a valid Letter Of Offer from the banks before signing the agreement for lease.
3. Lookout For BTO Launch And Apply!
Keep yourself updated for BTO launches and apply should you be interested. The application for the May Launch will be from 18 to 24 May 2017.
A $10 application fee is required for the application. This will be the tip of the iceberg for the payment of your home.
4. The Result Of Your Application
At the end of the application period, your queue position will be balloted. Your application result will be sent to you via Email or post. You can also check the status of it online.
Applicants will be invited to select a flat according to the balloted queue number. Whether or not you get your chance to select a flat depends on the flats available when it reaches your queue number.
5. Paying Option Fee
Should you be lucky enough to be able to select the flat you want, an option fee is required when you select a flat. A valid HLE letter is required when selecting a flat if you are taking a loan from HDB.
Related: Is HDB Loan Refinancing a Good Idea?
6. Agreement For Lease And Keys
You will be asked to sign the agreement for lease or to collect the keys for the flat, few months after selecting a flat. The signing of the agreement for lease are for flats that are still under construction, and keys for flats that are already completed.
This is the stage where you pay for the downpayment, legal fees, and stamp fees. A valid HLE or Letter of Offer from the bank is required at this stage too.
This article first appeared in blog.seedly.sg