If you are buying a resale flat, Housing Development Board (HDB) provides HDB housing loans at a concessionary interest rate, in which your (the buyers’) credit limits are assessed by HDB and the current criteria for HDB mortgage loan.
If you choose to take a housing loan from HDB, you can later refinance the flat with a housing loan from a bank.
However, if you choose to take a housing loan from the bank, you will not be allowed to refinance your flat with a housing loan from HDB.
Are you eligible?
At least 1 buyer must be a Singaporean citizen (SC). That is to say, for example, you and your wife are both Singaporeans, or a Singapore Citizen and a Singapore Permanent Resident (SPR).
Have not previously taken 2 or more housing loans from HDB
or, have taken 1 housing loan from HDB and the last property owned is not a private residential property which may include but is not limited to (regardless of property’s location) a HUDC flat, property acquired by gift, inherited as a beneficiary under a will or as a result of the Intestate Succession Act, Private Property, or Property owned/ acquired / disposed (sell off) through nominees.
The average gross monthly household income should not exceed $12000 for families, $18000 for extended families such as multi-generation families or $6000 for singles buying a 5-room or smaller resale flat, or a 2-room new flat in a non-mature estate under the Single Singapore Citizen (SSC) Scheme.
If the applicant or occupier is unemployed for fewer than 3 months, the average income will be calculated based on the number of actual months he/she has worked.
Ownership/Interest in Property:
The applicant(s) must not own or have disposed of any private residential property in the 2.5 years (30 months) before the date of application for an HLE letter.
It is also not limited to (regardless of property’s location) a HUDC flat, property acquired by gift, inherited as a beneficiary under a will or as a result of the Intestate Succession Act, Private Property, or Property owned/acquired/disposed through nominees.
He/She should not own more than 1 market/hawker stall or commercial/industrial property.
If it is, he/she should be self-employed and be operating the business, and not as another source of income. i.e. rental.
When you buy or take over a flat, there should be a remaining lease of 60 years or more.
If it has a remaining lease is between 30 to 59 years, the HDB housing loan is allowed only if the remaining lease covers the buyer(s) (average age if more than 1 buyer) up to the age of at least 80 years old.
The loan tenure will be the shortest of either 25 years, 65 years minus the average age of the buyers or balance lease at the point of purchase, minus 20 years.
If the remaining lease of HDB flat is less than 20 years, it is not allowed to take a HDB housing loan.