You’ve found the perfect HDB resale flat as your new home, and the seller is agreeable to selling it to you. What happens then? How much do you need to budget for your new home?
Unfortunately, there are more fees to pay than just the agreed selling price of the HDB resale flat. In this guide, we’ll delve into the legal fees for HDB resale flats, the down payment amount for resale HDB flats, and other HDB flat resale fees and processes you need to know about.
We also include a quick guide to using the HDB Flat Portal, which now means the home-buying process for new and resale HDB resale flats happens only on one platform. On the HDB Flat Portal, you can also apply for the HDB Flat Eligibility (HFE) letter, which checks your HDB flat eligibility, CPF Housing Grant eligibility, and HDB loan eligibility in one step.
HDB Resale Fees: An Overview
| Cost | Description | Amount |
| Legal fees for HDB resale flat | This ensures that the transfer of the ownership of the property is complete and clean. | First $30,000: $0.90 per $1,000 Next $30,000: $0.72 per $1,000 Remaining amount: $0.60 per $1,000 |
| Property agent’s commission | Applicable if the HDB resale flat transaction was through an agent | Typically 2% by seller, 1% by buyer (depending on the agent) |
| HDB resale flat application fees | Administrative fee required by both buyer and seller to HDB | For 1-room and 2-room flats: $40 For 3-room and bigger flats: $80 |
| Request for Temporary Extension of Stay | Since the buyer owns the HDB flat once the sale is complete, the cost of allowing the previous owner to stay in the HDB flat for some time will fall on the buyer/new owner | On top of the cost of the seller living in the flat, an administrative fee of $20 |
On top of the above being just a guideline, the HDB resale flat fees you’ll need to pay will also differentiate should you choose an HDB or bank loan to finance your flat.
HDB Resale Fees: HDB Vs Bank Loan
Let’s use newlywed Singaporean couple James and Lily who are purchasing their first residential property as an example.
- Combined income: $6,500 per month
- Combined CPF savings: $35,000
- Property type: 3-room HDB resale flat
- HDB resale flat price: $450,000
HDB Resale Fees When You Take on an HDB Loan: An Overview
Based on the Budget 2023 statement, CPF Housing Grants for eligible first-timers buying HDB resale flats have increased as follows:
| Applicant type | Previous CPF Housing Grant amount | Revised CPF Housing Grant amount |
| First-timer families buying 4-room or smaller HDB resale flats | Up to $50,000 | Up to $80,000 |
| First-timer families buying 5-room or larger HDB resale flats | Up to $40,000 | Up to $50,000 |
| First-timer singles buying 4-room or smaller HDB resale flats | Up to $25,000 | Up to $40,000 |
| First-timer singles buying 5-room or larger HDB resale flats | Up to $20,000 | Up to $25,000 |
Based on their household income of $6,500 a month, James and Lily are eligible for $30,000 in CPF Housing Grants (i.e. Enhanced CPF Housing Grant or EHG).
If they plan on staying with or within 4km of their family, they’ll also be eligible to apply for the Proximity Housing Grant (PHG), which will qualify them for up to an additional $30,000 or $20,000, respectively.
HDB Resale Fees For HDB Loans: A Breakdown
After assessing their finances, James and Lily intend to primarily fund their new HDB resale flat with a 25-year HDB loan amounting to $390,000. They’ve decided to stay within 4km of their families, and also plan to repay their mortgage instalments utilising their CPF monies. Here is how much they’ll need to pay:
| HDB resale flat fees | Amount | Payment method |
| Deposit (includes booking fee) | $5,000.00 | Cash |
| Valuation fee | $120.00 | Credit card |
| Resale application administrative fee | $80.00 | Credit card |
| Stamp duty on option (based on the $450,000 HDB resale flat price) | $8,100.00 | Cash/CPF |
| Stamp duty on mortgage | $500 | Cash/CPF |
| Conveyancing fee for OTP (based on the $450,000 HDB resale flat price) | $4,500 | Cash/CPF |
| Conveyancing fee for the HDB loan (based on $382,500 HDB loan amount) | $282.60 | Cash/CPF |
| Registration and microfilming for transfer of ownership | $38.30 | Cash/CPF |
| Registration and microfilming for housing loan | $38.30 | Cash/CPF |
| Buyer’s caveat | $64.45 | Cash |
| Mortgagee’s caveat | $64.45 | Cash |
| Title search fees | $32.00 | Cash |
| CPF Home Protection Scheme (HPS) mortgage insurance | $220.70 | CPF |
| Fire insurance | $4.91 | Cheque |
| Flat selling price (to be paid by HDB loan; 85% Loan-to-Value) | $382,500.00 | HDB loan |
| Down payment for resale HDB flat (to be paid by CPF savings) | $37,500 | CPF |
| Down payment for resale HDB flat (to be paid by CPF grants) | $50,000 | CPF |
| Total | $489,045.71 |
As shown above, the buyers will need to pay about $39,046 in cash, given that the HDB loan, CPF savings and grants would only cover the selling price of the flat or $450,000. Please note that HDB loan will be first deducted from CPF Savings, before paying for the rest.
Note: The above table is only intended to give buyers an idea of how much they need to pay for an HDB resale flat. To get a more accurate financial breakdown, please visit the HDB Flat Portal.
HDB Resale Fees For Bank Loans: A Breakdown
With everything else being the same as the above situation, let us assume the couple qualified for the maximum Loan-to-Value (LTV) ratio of 75%. This means they can only loan $337,500 to buy the $450,000 flat. They also engaged an external lawyer to assist them with the deal, particularly with conveyancing. For this, the couple agreed to pay the attorney about $2,800 for his legal services. Below is the financial breakdown of the transaction.
| HDB resale flat fees | Amount | Payment method |
| Deposit (includes booking fee) | $5,000.00 | Cash |
| Valuation fee | $120.00 | Credit card |
| Resale application administrative fee | $80.00 | Credit card |
| Stamp duty on option (based on the $450,000 flat price) | $8,100.00 | Cash/CPF |
| Stamp duty on mortgage | $500 | Cash/CPF |
| Legal fees for HDB resale flat | $2,800.00 | Cash |
| CPF Home Protection Scheme (HPS) mortgage insurance | $220.70 | CPF |
| Fire insurance | $4.91 | Cheque |
| Flat selling price (to be paid by bank loan; 75% Loan-to-Value) | $337,500.00 | Bank loan |
| Down payment for resale HDB flat (to be paid by CPF savings) | $35,000.00 | CPF |
| Down payment for resale HDB flat (to be paid by CPF grants) | $25,000.00 | CPF |
| Flat selling price/ other fees (to be paid in cash) | $52,500.00 | Cash |
| Total | $466,825.61 |
The overall cost is roughly the same compared to using an HDB loan, but the couple will need to pay more money out of their own pocket, as their CPF savings, CPF grants and bank loan only total $397,500, given the 75% LTV.
Note: The above table is only intended to give buyers an idea of how much they need to pay for an HDB resale flat. To get a more accurate financial breakdown, please visit the HDB Flat Portal.
Resale HDB Process Via the HDB Flat Portal
As mentioned, the HFE letter application process is now the first step to buying HDB flats. Refer to our flowchart which lays out the steps for buying both new and resale HDB flats:
View this post on Instagram
As illustrated in frame three above, here are the seven steps to buying an HDB resale flat:
1. Search for HDB Resale Flats on PropertyGuru
Browse all HDB resale flat listings on PropertyGuru now.
2. Apply for the HFE letter
Applying for the HFE letter involves two steps. The first is called the HFE preliminary check, whereby the HDB Flat Portal will give you a broad assessment of your various HDB home-buying eligibility statuses.
When you’re sure you want to buy an HDB flat soon, you can apply for the actual HFE letter, which will take about 21 working days to be processed. The HFE letter is valid for six months thereafter, to make sure you complete your HDB resale flat purchase within that time frame.
3. Apply for an HDB Loan or Loan From a Participating Financial Institution (FI)
If you’re eligible and keen on applying for an HDB loan, you can simply proceed to apply for it via the HDB Flat Portal.
Alternatively, you can request an In-Principal Approval (IPA) and Letter of Offer (LO) from six participating FIs, including all major banks in Singapore, via the portal.
4. Obtain the Option to Purchase (OTP)
An OTP is an agreement between a buyer and seller of an HDB resale flat on the sale of said HDB flat, inclusive of the price the HDB flat will be sold at.
5. Check the HDB Valuation of Your HDB Resale Flat
Only after you and the seller agree on the purchase price of an HDB resale flat can you review HDB’s official valuation of that flat. If the price you agreed to is higher than HDB’s valuation, you are said to have incurred cash over valuation (COV).
Note: COV can only be paid for in cash, is not considered as part of the Loan-to-Value ratio (LTV) for HDB or bank loans, and yet it is considered for Buyer’s Stamp Duty (BSD) and Seller’s Stamp Duty (SSD).
6. If You’re Taking an FI Loan
This would be the time to request an LO to confirm that the FI you want to obtain a loan from is willing to lend you the money you need to finance your HDB resale flat.
7. Exercise Your OTP and Submit Your HDB Resale Flat Application
Finally, you’re ready to formalise your HDB resale flat transaction. Do ensure you have all the following documents before submitting your HDB resale flat application on the HDB Flat Portal:
- OTP details
- Full address of the resale unit
- Particulars of: Sellers, Buyers, Occupiers
- Intention to apply for any grants (CPF Housing Grants or Proximity Housing Grant)
- Intention to finance with a loan (HDB loan or bank loan)
- Manner of Holding of HDB unit
- Any declarations regarding the purchase
When Must I Submit My HDB Resale Application?
After you have exercised the OTP, the buyer and seller will need to submit the resale application within seven days of each other’s application.
That is to say, you will have to communicate with your buyer/seller to agree on a timeframe for your respective submission of the application. If not done properly and the application period lapsed, you will have to restart the entire process again.
Completion of Resale Transaction
Once the transaction is completed, the buyer will get a confirmation letter of ownership permitting him to apply for water and electrical connection. A renovation permit will also be issued.
The refunding of the seller’s CPF monies will also be arranged by the Housing Board to be credited back into his CPF account within seven working days from the date of completion of the resale transaction.
For more property news, content and resources, check out PropertyGuru’s guides section.
Looking for a new home? Head to PropertyGuru to browse the top properties for sale in Singapore.
Need help financing your latest property purchase? Let the mortgage experts at PropertyGuru Finance help you find the best deals.
