How to Buy A HDB BTO Flat

This article will provide you a step-by-step guide on how to buy a HDB BTO flat (also known as Built-To-Order flat).

Do take note that the process to buy a HDB BTO flat is totally different from that of a HDB resale flat. If you are looking to buy a HDB resale flat, please refer to “How to Buy A HDB Resale Flat – A Complete Guide”.

To apply or buy a HDB BTO flat, the process is as follows:

Eligibility to Buy A HDB BTO Flat

First of all, you must meet the eligibility conditions on buying a HDB BTO flat. Among them, you have to be a Singapore citizen applying with another Singapore citizen or Singapore permanent resident, age 21 or older. Your total household income must not exceed $14,00 per month or $21,000 for extended families. You have also not bought a new HDB/ DBSS flat or executive condominium (EC) before.

Singapore permanent residents are not allowed to by HDB BTO flats. They can only buy HDB resale flat after gaining their permanent residency for 3 years. Foreigners are also not allowed to own public housing, whether BTO or resale HDB flats.

 

HDB BTO Flat Sale Launches

Look out for the HDB BTO flat sale launches. There are four each year - February, May, August and November. To allow people to plan for their purchase, HDB will release the launch details 6 months in advance. These include the location, map, types of flats offered and the estimate number of units available. Alternatively, you can sign up for the HDB sales alert. The new HDB BTO sales launches are usually spread across several mature and non-mature estates.

 

HDB BTO Flat Application

For your HDB BTO flat application, you are only allowed to apply for one flat type at one location. Upon the official sale launches of the flats, you have 7 days to decide whether to apply or not.

If you have done your homework, you should have already come to a decision after discussing with your family which BTO flat to apply for. Bear in mind that BTO flats in mature estates will see higher demand despite being more expensive. To increase your chances of selecting a good unit, you may want to consider a flat in a less popular estate.

As part of your decision making, you may also want to consider applicable HDB priority schemes such as the Parenthood Priority Scheme and Multi-Generation Priority Scheme when buying your HDB BTO flat. This will help to increase the chances of getting a flat of your choice. You can find out the various priority schemes here.

 

HDB BTO Flat Ballot Result

After 1.25 months after the HDB BTO flat application closes, you will be informed of your ballot result through one of the following channel - SMS, emails or hardcopy letters - when ready.

Applicants will be invited to select their flat according to their queue number. The lower your queue number, the more flats you will get to choose from. You will also get the chance to select a unit with good facing, high floor, near amenities (e.g. bust-stop, MRT station, schools, market), etc. However, do note that whether you get the chance to select a flat will depend on the number of flats available when it reaches your queue number. However, there are consequences if you reject your BTO application.

For first-timers, rejecting 2 chances to book a BTO flat means your first-timer priority will be suspended for 1 year. However, that does not mean you cannot apply for a BTO flat during that 1 year. It is just that your first-timer priority will be stripped.

But if you reject another 2 more chances to select a new flat within that year, your first-time status will be extended for another year.

[Note: A higher percentage of flats are set aside for first-timers by HDB to help new families to set up their homes faster].

 

Before Your First HDB Appointment

You will be invited by HDB to book your BTO flat after 1-2 weeks, depending on your queue position. Meanwhile, before your first HDB appointment, it will be prudent to shortlist a few choice units a few days before your selection. There is no point shortlisting too early as your choices may have already been snapped up by the time it reaches your queue number.

 

Your First HDB Appointment

On your first HDB appointment, bring along your appointment letter and NRIC. The flat selection is based strictly on your queue number and a HDB officer will assist you in selecting your flat based on the available units.

If you are successful in booking a unit and decide to take up a HDB concessionary loan, you will need to apply for the HDB Eligibility Letter (HLE). If you are taking a bank loan, you need to produce a Letter of Offer (LO). You also need to pay an option-to-purchase fee - $500 for 2-room flexi flat, $1,000 for 3-room flat and $2,000 for 4 room and bigger flat, including executive flat.

 

Optional Component Scheme (OCS)

Also during your first HDB appointment, you may decide whether to opt for the OCS. The scheme offers flat buyers the option of fitting their units with floor tiles, doors, sanitary fittings, etc. When a flat buyer opts in for OCS, the cost of the optional components will be added to the flat price.

But do note that projects built using the Prefabricated Prefinished Volumetric Construction (PPVC) method, they will come with full floor finishes, internal doors, and sanitary fittings. Hence, the OCS is not applicable to these projects.

You can choose to have the following items installed in the flat you have selected:

 

Your Second HDB Appointment

In about 4 months, you will be informed of your second HDB appointment where you need to go down to sign your Agreement for Lease. At the same time, you will be required to pay the downpayment, stamp duty and legal fees. You are also required to submit your HDB Loan Eligibility Letter (HLE) or Letter of Offer (LO) depending on whether you are taking a HDB concessionary loan or bank loan.

For more information governing housing loans and CPF usage, please refer to Change in CPF Usage and Housing Loan Rules. In addition, you need to decide on the ownership status – Joint Tenancy or Tenancy-In-Common. In Joint Tenancy, you hold equal share in the flat while in Tenancy-In-Common, you can hold an unequal share.

 

Key Collection for Your HDB BTO Flat

It takes about 3 years to complete the construction of your new flat. Once completed, you will be notified of your key collection. All in all, buying a HDB BTO flat will take about 4 years.

Prior to your key collection, you should have decided on your renovation and how much to spend. You can find a list of approved HDB contractor in the Directory of Renovation Contractors.

We hope you have found this guide on how to buy HDB BTO flat useful.

Should you have any further queries or require any assistance, please feel free to WhatsApp or Email us.

 

---

Other Resources