For this edition of Ask an Agent, we focused on one of the most common topics among Singaporeans and PRs alike – buying your first HDB. From grants and down payments to resale rules and lease concerns, here are the questions that were addressed.
Keep an eye on 99.co’s social channels, where the answers will be shared alongside the latest property insights and market trends.
These answers were provided by Melina Yap (CEA: R029842I), who has been in the real estate industry for 17 years.
Financing, grants & costs
“My brother transferred his HDB flat to me without selling it, but I need to pay for his CPF refund. Can I take an HDB loan? Can I still use the HDB grant given in HFE?” – Albert
An HDB flat cannot simply be transferred from one sibling to another without going through the proper resale process. Instead, both parties will still need to follow the standard HDB resale route. Firstly, the seller must submit an Intent to Sell. After that, the buyer will need to complete the HDB Flat Eligibility (HFE) process.
The HFE is important because it clearly states whether the buyer qualifies for an HDB loan, CPF housing grants, and the loan amount they are eligible for. Eligible buyers are also generally entitled to up to two HDB loans, provided they meet the required conditions such as the income ceiling.
As for the CPF refund, the seller will still need to return the CPF monies previously used for the flat, along with the accrued interest. HDB will deduct any outstanding home loan and CPF refund amount before any sales proceeds are released.
The transaction will then proceed through the usual stages, including the Option to Purchase (OTP), valuation, exercise of the OTP, resale application, approval, and completion.
“How much would the down payment be?” – Jinitha
The maximum loan amount for both HDB loans and bank loans is currently 75%, which means buyers will need to prepare a 25% down payment. However, the payment structure differs depending on the type of loan chosen.
For buyers taking an HDB loan, the full 25% down payment can be paid using CPF funds. As a result, there may not be any need for upfront cash unless there is Cash Over Valuation (COV).
For buyers taking a bank loan, a compulsory 5% cash payment is required, while the remaining 20% can be paid using CPF funds. If CPF savings are insufficient, the shortfall will need to be topped up with cash.
Buyers should also remember to factor in any COV, since this portion must be paid fully in cash.
“I am planning for my first HDB purchase and would like guidance on eligibility checks, available grants and long-term suitability. Specifically, I am searching for a unit within 1km of Opera Estate Primary School.” – Mrs K L Nandhini
The first step for any buyer should still be completing the HFE application. Once the HFE is approved, buyers will have a clearer understanding of whether they are eligible to purchase an HDB flat, the grants they qualify for, and the loan amount available to them.
As for homes located within 1km of Opera Estate Primary School, buyers will mainly be looking at HDB flats in the Chai Chee area.
When it comes to choosing a suitable flat, there is no single “best” option because preferences differ from household to household. Some buyers may prioritise larger and more affordable older flats, while others may prefer newer flats with a longer remaining lease.
Couples without children may not mind purchasing older flats because these units are often more spacious and lower in price. Meanwhile, families with children may prefer newer flats so they can eventually pass the property down to the next generation.
Personal lifestyle preferences matter as well. While many buyers prefer corner units for additional privacy, some homeowners actually enjoy corridor units because they offer more opportunities for interaction with neighbours. Similarly, some buyers prioritise higher-floor units for better views and ventilation, whereas others may prefer lower floors for convenience.
Future planning
“Do you really get your CPF refunded after you sell your HDB?” – Darrell
CPF monies used for the property will need to be refunded once the flat is sold. This includes both the CPF amount used for the home purchase and the accrued interest accumulated over the years.
Before sellers receive any cash proceeds from the sale, HDB will first deduct any outstanding housing loans, CPF refunds, and accrued interest. Only after these deductions are made will the remaining sales proceeds be released.
However, refunded CPF funds can still be reused for future property purchases if the owner is below 55 years old. For owners above 55, the refunded amount may be subject to retirement sum requirements such as the Basic Retirement Sum (BRS).
“What happens to an HDB after the 99-year lease expires?” – Gopa
Under current rules, HDB flats are generally expected to be returned to the government once the 99-year lease expires.
However, there are currently no HDB flats in Singapore that have fully reached the end of their 99-year lease yet. Because of that, there is still uncertainty surrounding how future policies may evolve.
Questions remain on whether lease top-ups could eventually be allowed, whether future schemes may be introduced, or whether different treatment could apply depending on the property itself.
At this stage, there are still no confirmed answers on what future policies may look like. As such, homeowners will likely need to wait for future government announcements as older flats continue ageing over time.
Market, investment & valuation
“How do you get a valuation done?” – Vrinda
Official HDB valuations can only be requested after there is an actual transaction in progress. This means the seller must first submit an Intent to Sell, the buyer must already have a valid HFE, the option fee must be placed, and the Option to Purchase must already be issued. After that, the buyer can apply for the official valuation by paying the valuation fee.
However, buyers and sellers who want a rough estimate beforehand can use tools such as SRX’s X Value. By entering details such as the property address, unit size, and unit number, users can receive an indicative market valuation estimate.
“Does a major transformation project bump up the resale price of flats nearby?” – Deric
Resale prices are ultimately driven by demand and supply. As a result, if a major transformation project increases demand within an area, resale prices may rise as well. Improved transport links, new amenities, and upgraded infrastructure often attract more buyers to a neighbourhood.
However, supply still matters. If there is a large increase in housing supply within the same area, price growth may become more limited. In short, transformation projects can support price growth, although overall market conditions still play a major role.
“What is the best strategy to maximise returns from an HDB flat?” – Ben
HDB flats were primarily designed to remain affordable for Singaporeans and are mainly intended for owner-occupation. As such, buyers should avoid treating HDB flats purely as profit-making assets.
Instead, buyers looking for stronger investment potential may want to explore private residential properties.
That said, homeowners can still improve returns in certain ways. For instance, spare bedrooms may be rented out while the owner continues living in the flat. Owners must also physically occupy the HDB during the Minimum Occupation Period (MOP). After fulfilling the MOP, Singapore citizens are allowed to rent out the whole unit.
HDB rental demand has also remained relatively strong in recent years.
Rules, regulations & eligibility
“If I am over 70 years old and just sold my private property, can I appeal to HDB to waive the 30-month waiting period before buying a 5-room unit directly from them?” – Anonymous
There have not been many known successful appeals involving the waiver of the 30-month wait-out period for buyers looking to purchase a 5-room BTO or Sale of Balance Flat (SBF).
Still, buyers can write in to HDB if they have strong supporting reasons. The appeal would likely need to clearly explain why a 5-room unit is necessary, why a BTO or SBF unit is specifically required, and why a resale flat would not be suitable instead.
Seniors above 55 years old who sell their private property can already purchase a resale HDB flat of 4-room size or smaller immediately without serving the 15-month wait-out period. However, buyers who want a 5-room resale flat will still need to wait 15 months, while buyers hoping to purchase a 5-room BTO or SBF directly from HDB remain subject to the longer 30-month wait-out period.
For buyers with exceptional circumstances, appeals together with supporting documents may still be considered.
“Is there any way to buy before the 15-month wait-out period?” – Win
This usually applies to private property owners who intend to downgrade to an HDB resale flat.
For homeowners aged 55 and above, they may immediately purchase a resale HDB flat that is 4-room or smaller after selling their private property. However, buyers below 55 years old will generally still need to serve the 15-month wait-out period. Buyers looking to purchase a 5-room resale flat will also need to wait.
That said, appeals may still be possible under special circumstances. In some cases involving genuine financial hardship, successful appeals have been submitted for buyers who could no longer sustain their private property loan commitments.
“How long do PR holders need to wait before they can buy a resale HDB?” – Kanishka
Both PR applicants must each hold Permanent Resident status for at least three years before they can purchase a resale HDB flat together.
For example, if one spouse has been a PR for 11 years but the other spouse only became a PR one year ago, they would still not qualify yet. The three-year requirement must be met before the couple applies for their HFE.
Stay tuned for the next Ask an Agent
Ask an Agent is a monthly initiative by 99.co where a guest property agent is invited to answer your questions about a selected topic. The aim is to get clarity and provide readers with clear, practical insights into today’s property market, directly from industry professionals.
That wraps up this edition of Ask an Agent. From grants and down payments to lease concerns and wait-out periods, these are some of the most common questions first-time HDB buyers continue to ask today.
Stay tuned for the next Ask an Agent, where we’ll explore another topic shaping Singapore’s property market.
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