For many in Singapore, buying a Housing & Development Board (HDB) flat is a significant milestone. Whether you’re a new couple, a growing family, or an individual looking for your own space, understanding the different pathways to homeownership is essential.
This article provides a comprehensive overview of the payment timelines associated with three key HDB flat acquisition methods: Build-To-Order (BTO), Sales of Balance Flats (SBF), and Open Booking.
Table of Contents
- Understanding the different methods of buying HDB flats
- Buying a new flat: Step-by-step process
- HDB BTO, SBF, and Open Booking payment timeline
- Side note: Buyer’s Stamp Duty (BSD) explained
- Conclusion
Understanding the different methods of buying HDB flats
In this article, we look at three different methods of purchasing an HDB unit. Each method caters to different needs and priorities:
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Build-To-Order (BTO): BTO flats are new flats offered by HDB for purchase before they are constructed. This option allows buyers to customize their flats and often comes with a fresh 99-year lease. However, it involves a waiting period for construction to be completed.
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Sales of Balance Flats (SBF): SBF exercises offer flats that were not sold during previous BTO sales or have been repurchased by HDB. This can be a good option for those who want a shorter waiting time than BTO but still desire a relatively new flat.
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Open Booking: For buyers seeking immediate occupancy, Open Booking allows direct application and booking of available unsold flats. This option typically offers the shortest waiting time to key collection.
Navigating the financial aspects of purchasing an HDB flat can be daunting. In the sections below, we will simplify the process by providing clear and detailed information on the payment timelines, fees, and payment modes involved in each of these flat application methods. We’ll also provide helpful examples and tips to aid in your financial planning.
Buying a new flat: Step-by-step process
Step 1: Check eligibility
The first and most crucial step in purchasing an HDB flat is to determine your eligibility. This is done by applying for an HDB Flat Eligibility (HFE) letter. The HFE letter is an official document from HDB that assesses your eligibility to:
- Purchase a new HDB flat (BTO, SBF, or Open Booking)
- Apply for housing grants, such as the Enhanced CPF Housing Grant (EHG)
- Obtain a housing loan from HDB or a bank
The HFE letter considers several factors, including your citizenship, age, income, and property ownership history. It also helps you to understand your financial capacity and work out your housing budget, ensuring you purchase a flat that you can afford.
You can find more information and apply for your HFE letter on the official HDB website.
Step 2: Apply online during the sales launch
Okay, you’ve got your HFE letter – that’s the big first step done! Now comes the exciting part: figuring out what kind of flat you want and how you’re going to pay for it.
Let’s talk about your flat options first. HDB offers a few different ways to get a flat, and each has its own pros and cons:
- BTO (Build-To-Order): Think of these as brand-new flats, built from scratch. HDB launches these projects a few times a year in different locations. The cool thing is you get a fresh 99-year lease, and sometimes you can even choose some of the finishes. The catch? You’ll have to wait a few years for them to be built.
- SBF (Sales of Balance Flats): These are flats that didn’t get sold in previous BTO sales, or that HDB has bought back. So, they’re not brand new, but they’re usually newer than resale flats, and the waiting time can be shorter than BTO. HDB also holds SBF exercises a few times a year.
- Open Booking: If you’re in a hurry to move, this is the quickest option. HDB lists flats that are available right now, and you can book them directly. It’s first-come, first-served, though!
To find out about upcoming BTO and SBF launches, you’ll want to keep an eye on the official HDB website – that’s where all the official info is. When you’re browsing, think about where you want to live, how much space you need, and of course, how much you can afford.
Speaking of affording a place, let’s get into the not-so-fun-but-super-important part: finances. Buying a flat is a huge financial commitment, so it’s really crucial to get your ducks in a row. Here’s what you need to think about:
- Downpayment: This is the initial amount you need to pay upfront. The exact amount depends on whether you’re taking a loan from HDB or a bank, and we’ll dive into those details later.
- Mortgage: Unless you’re paying for the whole flat in cash (lucky you!), you’ll need a home loan. You’ll want to figure out how much you can borrow and how much your monthly repayments will be.
- Other costs: Don’t forget that there are other expenses involved, like Buyer’s Stamp Duty (BSD) – a tax you pay to the government – legal fees, and maybe even renovation costs if you’re not a fan of the standard fittings.
To help you get a sense of what you can realistically afford, try out some online affordability calculators. 99.co has one, and there are others available too. Also, it’s worth checking out the grants you might be eligible for, like the Enhanced CPF Housing Grant (EHG). These grants can really make a difference and lighten the financial load.
Step 3: Book a flat
After deciding on a flat type and development that suits your needs, the next step is to apply for it during the designated sales launch period (for BTO and SBF).
Applications are submitted online through the official HDB website. For BTO and SBF, after the application period closes, HDB will conduct a ballot to determine the queue order of applicants. Applicants will receive ballot results, indicating their queue number. This number determines the order in which they can select a flat.
Step 4: Secure your flat with the Option Fee
If your queue number is favourable in a BTO or SBF exercise, or if you’re booking an open booking flat, you will proceed to book a flat. When booking a flat, you’ll need to pay an Option Fee.
The Option Fee secures your chosen flat temporarily, taking it off the market while you proceed with the purchase. The Option Fee will form part of the required downpayment for the flat.
Step 5: Sign the agreement for lease and make the downpayment
The next crucial step is signing the Agreement for Lease with HDB. This is a legal document that formalizes your purchase of the flat. This document outlines the terms and conditions of your flat purchase. Ensure you understand all the clauses before signing.
You’ll also need to pay the downpayment when you sign the Agreement for Lease. The downpayment amount varies depending on whether you take an HDB loan or a bank loan:
If you’ve taken an HDB Loan:
- The downpayment can be paid using a combination of your CPF Ordinary Account (CPF OA) savings and cash.
- HDB sets the specific downpayment percentages, which may vary depending on prevailing policies.
- There may be a minimum cash component required.
If you’re financing through a bank loan:
- Bank loan downpayment requirements differ from HDB loan requirements.
- Banks typically require a larger cash component for the downpayment.
- The Loan-to-Value (LTV) ratio also affects the cash/CPF allocation.
Remember: If you are financing your flat purchase with a bank loan, it is essential to secure a valid Letter of Offer from the bank before signing the Agreement for Lease. This letter confirms the bank’s commitment to provide the loan.
Step 6: Key collection and final payment
The final step in the HDB flat buying process is key collection. This is when you officially receive the keys to your new flat and become the legal owner.
Before key collection, you must pay the remaining balance of the purchase price. This is typically covered by your housing loan (HDB or bank).
Other fees may also be payable at key collection, such as:
- Registration fees
- Survey fees
- Fire insurance premiums
HDB BTO, SBF, and Open Booking payment timeline
Purchasing an HDB flat involves various costs and payments at different stages of the process. This section provides a detailed breakdown of the payment timelines and associated expenses for each HDB flat acquisition method: Build-To-Order (BTO), Sales of Balance Flats (SBF), and Open Booking.
While there are some common fees across all methods, such as the application fee and Buyer’s Stamp Duty, the timing and specific amounts can vary. Therefore, it’s crucial to understand the nuances of each process to plan your finances effectively and ensure a smooth home-buying journey.
The following tables outline the typical payment timelines and costs for each flat type.
BTO flat payment timeline and costs
| Stage of Purchase | Fee Description | Amount Payable | Payment Mode |
|---|---|---|---|
| BTO Application | Application Fee | S$10 | Credit card or mobile payment app (e.g., DBS PayLah!, UOB TMRW, OCBC Pay Anyone, etc.) |
| Flat Booking | Option Fee (forms part of the downpayment) | 2-room Flexi: S$500 3-room: S$1,000 4-room and bigger: S$2,000 |
NETS |
| Buyer’s Stamp Duty (BSD) | First S$180,000: 1% Next S$180,000: 2% Next S$640,000: 3% Next S$500,000: 4% Next S$1.5m: 5% Remaining amount: 6% (See 99.co’s Stamp Duty Calculator for exact amount) |
GIRO, PayNow, AXS, internet banking, SingPost, cheque | |
| Signing of Agreement for Lease | Conveyancing Fee (Legal Fee) | First S$30,000: S$0.90 per S$1,000 Next S$30,000: S$0.72 per S$1,000 Remaining amount: S$0.60 per $1,000 |
GIRO, PayNow, AXS, internet banking, SingPost, cheque |
| Downpayment | If taking HDB loan |
|
CPF, Cash |
| If taking bank loan |
|
Cash, CPF | |
| Staggered Downpayment Scheme | *Check HDB eligibility for this scheme. If eligible, downpayment can be paid in two stages, reducing the initial cash outlay. | Cash, CPF | |
| Key Collection | Registration Fee | Lease In-Escrow: S$38.30 Mortgage In-Escrow: S$38.30 |
Cashier’s Order, CPF |
| Survey Fee | 1-room: S$162 2-room: S$162 3-room: S$229.50 4-room: S$297 5-room: S$351 Executive: S$405 (inclusive of GST) |
Cash | |
| Stamp Duty for Deed of Assignment | 0.4% of the loan amount, up to S$500 | GIRO, PayNow, AXS, internet banking, SingPost, cheque | |
| Home Protection Scheme (HPS) Annual Premium | Depends on outstanding loan and CPF usage | CPF | |
| Fire Insurance Premium for 5 Years | 1-room: S$1.63 2-room: S$2.73 3-room: S$4.91 4-room: S$5.99 5-room: S$7.19 Executive: S$8.18 (inclusive of GST) |
Cash | |
| Final Payment | Balance of Purchase Price | Covered by home loan (if applicable) | Home loan |
The BTO process involves a series of payments starting with a small application fee. The Option Fee secures the flat booking and forms part of the downpayment. Buyer’s Stamp Duty and legal fees are payable during the lease agreement signing.
The downpayment varies significantly depending on whether you take an HDB loan or a bank loan, and for bank loans, the Loan-to-Value (LTV) ratio is a factor. Key collection involves various smaller fees, with the remaining purchase price covered by the home loan. It’s crucial to understand the downpayment structure clearly.
Calculate how much you can afford with 99.co’s affordability calculator!
SBF flat payment timeline and costs
| Stage of Purchase | Fee Description | Amount Payable | Payment Mode |
|---|---|---|---|
| SBF Application | Application Fee | S$10 | Credit card or mobile payment app |
| Flat Booking | Option Fee (forms part of downpayment) | Similar to BTO (depending on flat size) | NETS |
| Signing of Agreement for Lease | Buyer’s Stamp Duty (BSD) | Same as BTO | GIRO, PayNow, AXS, internet banking, SingPost, cheque |
| Conveyancing Fee (Legal Fee) | Same as BTO | GIRO, PayNow, AXS, internet banking, SingPost, cheque | |
| Downpayment | If taking HDB loan | Same as BTO | Cash, CPF |
| If taking bank loan | Same as BTO | Cash, CPF | |
| Key Collection | Registration Fee | Same as BTO | Cashier’s Order, CPF |
| Survey Fee | Same as BTO | Cash | |
| Stamp Duty for Deed of Assignment | Same as BTO | GIRO, PayNow, AXS, internet banking, SingPost, cheque | |
| Home Protection Scheme (HPS) Annual Premium | Same as BTO | CPF | |
| Fire Insurance Premium for 5 Years | Same as BTO | Cash | |
| Final Payment | Balance of Purchase Price | Covered by home loan (if applicable) | Home loan |
The payment timeline and costs for SBF flats largely mirror those of BTO flats. The key stages and fees, including the application fee, option fee, Buyer’s Stamp Duty, legal fees, downpayment structure (depending on loan source), and key collection fees, are generally the same.
This means that financial planning for SBF purchases can follow a similar approach to BTO.
Calculate how much you must pay for the BSD 99.co’s stamp duty calculator!
Open booking flat payment timeline and costs
| Stage of Purchase | Fee Description | Amount Payable | Payment Mode |
|---|---|---|---|
| Open Booking Application | Application Fee | S\$10 | Credit card or mobile payment app |
| Flat Booking | Option Fee (forms part of downpayment) | Similar to BTO/SBF (depending on flat size) | NETS |
The payment structure for Open Booking flats aligns closely with BTO and SBF. The application fee, option fee, stamp duties, legal fees, downpayment arrangements, and key collection charges are generally consistent across all three methods.
This simplifies the financial planning process, regardless of the chosen flat acquisition route. However, due to the nature of Open Booking (immediate booking of available flats), the timeline between booking and key collection is typically shorter compared to BTO, which involves a construction period.
Side note: Buyer’s Stamp Duty (BSD) explained
Buyer’s Stamp Duty is a tax that you must pay to the Inland Revenue Authority of Singapore (IRAS) when you purchase property. The amount of BSD payable is calculated based on the purchase price or the market value of the property, whichever is higher.
BSD is a tiered tax, meaning different portions of the property value are taxed at different rates. The current BSD rates for residential properties are as follows:
- First S$180,000: 1%
- Next S$180,000: 2%
- Next S$640,000: 3%
- Next S$500,000: 4%
- Next S$1,500,000: 5%
- Remaining amount: 6%
Example Calculation:
Let’s say you’re buying a flat for S$500,000. Here’s how the BSD would be calculated:
- 1% on the first S$180,000: S$1,800
- 2% on the next S$180,000: S$3,600
- 3% on the next S$140,000: S$4,200
- Total BSD: S$1,800 + S$3,600 + S$4,200 = S$9,600
Please note: The BSD rates are subject to change, so it’s always best to refer to the official IRAS website for the latest information. You can use online BSD calculators (like the one on 99.co) to easily calculate the exact amount of BSD payable for your property purchase.
Conclusion
Navigating the world of HDB flat purchases can feel overwhelming, but with careful planning and a clear understanding of the payment timelines, you can make your dream of homeownership a reality.
HDB’s policies and fees are subject to change, so the official source is your most reliable guide. You can also consider contacting 99.co’s mortgage broker to create a personalized plan that aligns with your financial situation. Also, please do take advantage of our affordability calculators, mortgage comparison tools, and other resources to make informed decisions.
At 99.co, we’re committed to empowering you on your property journey. If you have any further questions or need assistance, don’t hesitate to reach out to us. We’re here to help you find your perfect home!
Read more: Deciding between HDB loan vs bank loan? Here’s a quick reference.
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What’s your experience with the HDB BTO payment process? Let us know in the comments section below.
If you found this article helpful, 99.co recommends 99.co’s guides: Buying a BTO – The Process & Procedures and My complete BTO experience: From balloting to renovation regrets.
[Additional reporting by Virginia Tanggono]
Frequently Asked Questions (FAQs)
If you’re taking an HDB loan, the downpayment is 25% of the purchase price, which can be paid using CPF Ordinary Account (OA) savings and/or cash. For example, if your BTO flat costs S$500,000, your downpayment would be S$125,000, which you can pay fully with CPF OA funds, cash, or a combination of both.
If you’re taking a bank loan instead, the downpayment is still 25%, but it’s split into 5% that must be paid in cash and 20% using CPF OA savings and/or additional cash. This applies under the Loan-to-Value (LTV) ratio of 75%, which is the maximum loan amount banks typically offer.
What is the conveyancing fee for BTO?The conveyancing fee, also known as the legal fee, is charged for transferring property ownership. The conveyancing fee for BTO is as follows: First, S$30,000: S$0.90 per S$1,000. Next, S$30,000: S$0.72 per S$1,000, and the remaining amount: S$0.60 per S$1,000.
What is the payment timeline for BTO?
The payment timeline for BTO includes the downpayment, progress payments, and the final payment. The downpayment is typically paid when you sign the Sales and Purchase Agreement (SPA) with HDB. Progress payments are made at various stages of construction, and the final payment is made when the flat is ready for occupation.
Can I pay the downpayment using CPF or cash?
Yes, you can use CPF savings, cash, or a mix of both to pay your downpayment, depending on the type of loan you take. If you’re taking an HDB loan, the downpayment is 25% of the purchase price and can be paid entirely using CPF Ordinary Account (OA) funds, cash, or a combination. For bank loans, the downpayment varies based on the Loan-to-Value (LTV) ratio. At 75% LTV, you’ll need to pay 25% upfront – 5% must be in cash, while the remaining 20% can come from CPF OA and/or cash. If the LTV is 55%, the downpayment increases to 45% – 10% must be paid in cash, and the remaining 35% can be from CPF OA and/or cash.
Can I apply for both the BTO and SBF exercises?
No, you can only apply for either the BTO or the SBF exercise, not both.
About Sophiyanah David
Sophi, a seasoned copywriter specialising in Singaporean real estate and property, is one of the minds behind 99.co's informative articles. Like her colleagues at 99.co, Sophi is dedicated to keeping you informed about the ever-changing world of real estate so you can find your forever home. When off the clock, you can find her giggling and kicking her feet as she reads her romance novels, watching anime - if FMBA is not your fave, she might fight you (but you'll probably win) and looking up latest skincare trends.
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Hi, can I ask if there’s any way to calculate this loan illustration with an example of a low-income worker with a monthly income of $1,400.00 who intend to purchase a 2-Room Flexi and come up with a rough price estimate. As I am curious as to how much a single with the above scenario is able to afford a small flat? Many thanks in advance 🙂
How to apply?
Hi Valerie, you can apply for a BTO flat through HDB’s website: https://homes.hdb.gov.sg/home/landing
Find out more on the application process here: https://www.99.co/singapore/insider/buying-bto-process-procedures/
Hi, what happens if the hdb loan quote does not cover to flat price? The remaining value should be paid during flat selection or key collection?
Hi Joker, the remaining value should be paid during key collection. You can find out more about it here https://www.hdb.gov.sg/residential/buying-a-flat/buying-procedure-for-new-flats/key-collection
Hi,
If we are buying a BTO flat of $600K.
We are taking HDB loan and our combined income can only loan up to $400.
15% down payment upon booking a flat e.g $90K
Our question is when do we need to pay the balance cash of $110K ($600K-$400K-$90K) ? upon collection of key or during booking?
Thanks.
Hi Pang, the balance cash is to be paid during key collection. You can find out more about it here https://www.hdb.gov.sg/residential/buying-a-flat/buying-procedure-for-new-flats/key-collection
Would like to check if bank loan , upon signing the lease , 5% cash + 5% cash /CPF
Then once key collection will be 15% Cash/CPF
Correct?
inbetween these two downpayment will be the building period of the property
Hi Junji, for bank loan, the downpayment during lease signing should be 5% cash + 15% cash/CPF. During key collection, the downpayment will be 5% cash/CPF.
We’ve updated the figures on our article.
Yes, lease signing will be done while construction of the property is ongoing.
If I’ve bought a Hdb direct long time ago with my spouse. Now I’m divorced. Can I apply BTO now?
Am current staying in a resale flat bought from market without getting any grant. If i’m applying BTO and the stated completion date is 7 years waiting. Can i stay in current HDB until the key collection 7 years later then only selling my current flat?
Let’s say we book BTO flat 550K and paid a 10% downpayment of 55K. HDB loan covers the balance of 495K.
We just wait for BTO completion and collect the key, move in, etc.
My question is: We currently stay in resale HDB (not taken any grant), if let’s say we sold it within 6 months after moving into our BTO at 400K (for example), the final settlement or balance amount after all the deduction (bank loan, CPF, accrued interest, etc) is 150K. Can we use it to pay HDB to reduce our HDB loan amount?