HDB Resale Buying Process: Your Complete Step-by-Step Guide
Buying an HDB resale flat is one of the most significant financial decisions you'll make in Singapore. The process involves multiple stages, from eligibility verification to final completion, typically spanning 8 to 12 weeks. At Homejourney, we prioritize your safety and confidence by breaking down each step clearly, ensuring you understand exactly what to expect and what documents you'll need at every stage.
This guide walks you through the complete HDB resale buying process, highlighting critical decision points and helping you avoid common pitfalls that first-time buyers often encounter.
Step 1: Obtain Your HDB Flat Eligibility (HFE) Letter
Before you can even begin searching for a flat, you must obtain an HDB Flat Eligibility (HFE) Letter. This is the foundation of your entire purchase journey. The HFE letter confirms three critical things: whether you're eligible to buy an HDB resale flat, which CPF housing grants you qualify for, and your eligibility for an HDB housing loan.[1][2]
To apply for your HFE letter, you'll need your NRIC, CPF statement, and employment details. You can apply online through the HDB website or visit any HDB branch. The application typically takes 5 to 10 working days to process. Importantly, your HFE letter is valid for nine months, so plan your purchase timeline accordingly to avoid reapplying.[3]
Key eligibility requirements include:
- Singapore citizenship or permanent residency
- Age 21 and above
- Not more than two previous HDB housing loans
- Not purchased multiple new HDB or Executive Condominium (EC) flats previously
- Meeting HDB's income ceiling requirements for your household size
During your HFE application, you can also request an In-Principle Approval (IPA) from participating financial institutions. This pre-approval from your bank shows sellers you're a serious buyer and streamlines the financing process later.[1]
Step 2: Search for Your Ideal Flat
With your HFE letter in hand, you can now search for a suitable flat that meets your budget and household needs. This is where Homejourney's property search tools become invaluable—you can explore available resale flats across Singapore while filtering by location, price, flat type, and other preferences.Property Search
When evaluating potential flats, consider these critical factors:
- Ethnic Integration Policy (EIP) Quota: Your household must fall within the EIP quota for both the block and neighbourhood. This policy ensures ethnic diversity in HDB estates.
- Singapore/PR Quota: If applicable, verify the permanent resident quota hasn't been exceeded.
- Past Resale Transactions: Review historical transaction data to understand price trends for that specific block and flat type.
- Remaining Lease: Flats with longer remaining leases typically maintain better resale value. Most buyers prefer flats with at least 70+ years remaining.
- Flat Condition: Conduct a thorough inspection and consider renovation needs and costs.
Homejourney provides transparent market data to help you make informed decisions. Understanding HDB resale price trends helps you identify whether you're getting fair value.HDB Resale Price Trends 2026: Market Analysis | Homejourney
Step 3: Obtain the Option to Purchase (OTP)
Once you've found a suitable flat and negotiated a price with the seller, the next critical step is obtaining an Option to Purchase (OTP).[1] The seller must have registered an Intent to Sell for more than seven days before granting you an OTP.
The OTP agreement includes:
- Agreed Purchase Price: The price you and the seller have negotiated
- Option Fee: A non-refundable fee ranging from $1 to $1,000 that you pay to the seller
- Option Period: A 21-day window during which you can decide whether to proceed with the purchase
During the Option Period, you have time to arrange financing, conduct inspections, and verify all details about the property. You can also choose to let the OTP expire if you decide not to proceed—this is your safety net as a buyer.[2]
This is an excellent time to finalize your financing arrangements. Check HDB housing loan options and rates to ensure you're getting competitive terms.Bank Rates
Step 4: Exercise Your Option to Purchase
Before the 21-day Option Period expires, you must formally exercise your OTP by notifying the seller in writing. This commits you to purchasing the flat at the agreed price. At this point, your option fee is typically forfeited if you don't proceed, so ensure you're ready before exercising the OTP.
If you obtained an IPA from your bank during the HFE application stage, you can now convert it into a formal Letter of Offer (LO) before exercising your OTP. This strengthens your position and provides additional certainty about your financing.[1]
Step 5: Submit Your Resale Application to HDB
After exercising your OTP, both you and the seller must submit your respective portions of the resale application to HDB via the My Flat Dashboard.[1] Either party can submit first, but the other party must submit their portion within 7 calendar days.
Required documents typically include:
- Valid HFE letter
- In-Principle Approval (IPA) or Letter of Offer from your bank
- Option to Purchase agreement
- NRIC copies of all household members
- Marriage certificate (if applicable)
- CPF statement
- Employment letter or payslips
- Bank statements
HDB will verify your eligibility and that of the seller, then provide an outcome within 4 to 6 weeks. During this period, HDB processes your CPF housing grant and coordinates with your bank. Providing all required documents promptly is essential to avoid delays.[3]
For a comprehensive checklist of required documentation, refer to Homejourney's detailed HDB Loan Documents Checklist to ensure you don't miss anything.
Step 6: Property Valuation and Final Loan Approval
Your bank will arrange a professional valuation of the property to ensure it's worth at least your loan amount. This typically takes 2 to 3 weeks. Based on the valuation, your bank provides final loan approval.[3]
Important consideration: If the valuation comes in lower than your agreed purchase price, your loan amount may be reduced. This means you'll need to provide additional cash from your own funds to make up the difference. This is why it's crucial to maintain financial flexibility during the buying process.
Step 7: Acknowledge Resale Documents and Pay Fees
Once HDB accepts your resale application and receives all supporting documents from both parties, they will prepare the necessary resale documents. These are typically ready about three weeks after HDB's acceptance.[1]
You and the seller must then:
- Acknowledge and endorse all resale documents online via My Flat Dashboard
- Pay the resale fees (typically a small administrative fee)
This step is straightforward but time-sensitive—ensure you complete it promptly to keep your transaction on schedule.
Step 8: Receive HDB Resale Approval
After all documents are endorsed and fees are paid, HDB will grant formal approval for your resale transaction.[1] You'll receive SMS notification confirming this approval, and you can also check your status via the My Flat Dashboard.
Step 9: Attend Completion Appointment
The final step is your completion appointment with HDB, scheduled approximately eight weeks from HDB's initial acceptance of your resale application.[1] You and the seller will receive SMS notification of your appointment date and time.
At the completion appointment, you will:
- Sign the mortgage document or agreement (if taking an HDB housing loan)[2]
- Acknowledge receipt of the flat keys
- Agree on the payment arrangement for any outstanding property tax with the seller
- Indicate how you'll pay the first month's service and conservancy charges
This is the only in-person HDB appointment required for the entire resale transaction. After this appointment, the flat officially becomes yours.
Timeline and Cost Breakdown
Understanding the complete timeline helps you plan your finances and living arrangements effectively. The entire resale process typically takes 8 to 12 weeks from the time you exercise your OTP to completion.[3]
Typical timeline breakdown:
- HDB Application Processing: 4-6 weeks
- Bank Valuation and Final Approval: 2-3 weeks
- Legal Documentation and Completion: 1-2 weeks
Beyond the purchase price, budget for these additional costs:
- Option Fee: $1 to $1,000 (paid to seller)
- Resale Fees: Typically under $100 (paid to HDB)
- Stamp Duty: Calculated based on purchase price (paid to IRAS)
- Legal Fees: If using a lawyer (optional but recommended)
- Property Inspection: $300-$500 (optional but highly recommended)
- Valuation Fee: Usually covered by the bank
For detailed financing options and current bank rates, check Homejourney's bank rates comparison to find the best HDB housing loan terms.Bank Rates
Common Mistakes to Avoid
Homejourney's commitment to user safety means helping you avoid costly errors. Here are the most common mistakes first-time buyers make:
- Not Checking Remaining Lease Carefully: A flat with less than 30 years remaining lease becomes difficult to resell and refinance. Always verify the exact lease remaining before committing.
- Ignoring EIP and PR Quotas: Discovering quota issues after exercising your OTP can derail your purchase. Verify these details during your search phase.
- Underestimating Renovation Costs: Budget for at least $15,000-$30,000 for basic renovations. Some flats may need significantly more.
- Not Obtaining IPA Early: Getting pre-approval during your HFE application stage strengthens your negotiating position with sellers.
- Missing the Option Period Deadline: The 21-day Option Period is fixed. Mark your calendar and don't miss the exercise deadline.
- Incomplete Documentation: Missing documents delay HDB processing. Use Homejourney's documentation checklist to ensure you submit everything required.
Key Considerations for Different Buyer Types
First-Time Buyers: You're eligible for more generous CPF housing grants and have fewer restrictions. Your HFE letter will specify your grant amount. Plan your finances to maximize this benefit.
Upgraders: If you're selling your previous HDB flat to buy a new one, ensure you've met the Minimum Occupation Period (MOP) on your current flat. Most upgraders must own their previous flat for at least 5 years before selling.HDB MOP Rules Explained: 2026 Guide for Buyers & Sellers | Homejourney
Investors: If you're buying as an investment property, understand that you may face different grant eligibility and additional restrictions. Verify your specific situation during the HFE application.
Post-Completion: What Happens Next
After your completion appointment, you'll receive the keys to your new flat. Your next priorities include:
- Arranging Utilities: Contact SP Group for electricity and water connection
- Updating Your Address: Notify relevant government agencies and financial institutions
- Property Maintenance: Schedule aircon servicing and general inspections to ensure everything is functioning properly.Aircon Services
- Home Insurance: Consider purchasing home insurance to protect your investment
Frequently Asked Questions
Q: How long is my HFE letter valid?
A: Your HFE letter is valid for nine months from the date of issue. If you haven't found a suitable flat or exercised your OTP within this period, you'll need to reapply.[3]
Q: Can I back out during the Option Period without losing money?
A: You can let the OTP expire without proceeding with the purchase, but you'll forfeit the option fee ($1-$1,000) you paid to the seller. This is the cost of your 21-day consideration period.[2]
Q: What happens if my bank valuation is lower than my agreed purchase price?
A: If the valuation is lower than expected, your loan amount will be reduced based on the bank's valuation. You'll need to provide additional cash to cover the difference between the loan amount and your purchase price.[3]
Q: Can I defer my completion appointment?
A: Yes, you can defer completion if both you and the seller agree. You must inform HDB with a written confirmation signed by both parties via MyRequest@HDB.[1]
Q: What documents do I need to bring to my completion appointment?
A: HDB will inform you of specific documents needed, but typically include your NRIC, the endorsed resale documents, and any other paperwork HDB specifies in their notification.
Why Homejourney Is Your Trusted Partner
Buying an HDB resale flat involves navigating complex regulations, significant financial commitments, and multiple decision points. Homejourney prioritizes your safety and confidence by:
- Providing Transparent Information: We break down each step clearly so you understand exactly what to expect
- Offering Verified Data: Our market insights and property information are sourced from official channels
- Prioritizing User Safety: We guide you through the process to help you avoid costly mistakes
