NEWS - 16 Oct 2006

With effect from 1 Jan 2007, flat buyers who intend to obtain an HDB loan to buy a new or resale flat will need to apply for an HDB Loan Eligibility Letter before they can commit to a flat purchase.

The HDB Loan Eligibility Letter will indicate the maximum loan amount that the flat buyer is eligible for and the repayment period and monthly instalments to service the maximum loan. Currently, new flat buyers are informed of their loan amount after the keys are ready for collection, and resale flat buyers are informed at the first resale appointment.

Implementation

The HDB Loan Eligibility Letter must be obtained before buyers exercise the Option to Purchase for the HDB flat. Similarly, those who intend to take over the ownership of an existing HDB flat must also obtain an HDB Loan Eligibility Letter before they submit their application to the HDB Branch Office. Buyers will need to comply with the new procedure to be granted an HDB mortgage loan to complete the purchase of the flat.

Those who intend to take an HDB Loan can apply on-line for the HDB Loan Eligibility Letter via the HDB website at (www.hdb.gov.sg). They can also check their eligibility for an HDB loan at the counters in HDB Hub. The loan eligibility letter will be valid for a period of 3 months from the date of issue.

Those buying HDB flats with bank loans will have to obtain a Letter of Offer from the bank before they exercise the Option to Purchase for the HDB flat. Those who do not require any home loan to buy the HDB flat will have to produce documentary proof showing that they have the financial means to purchase the flat.

Enquiries

For further enquiries, the public may:
- Call the toll-free Sales/Resale Customer Service Line at 1800-8663066 or Branch Office Service Line at 1800-2255432;
- Visit the HDB Sales Office or Resale Office counters at the Atrium, 1st storey at HDB Hub in Toa Payoh