Can SPR Buy HDB Flats in Singapore?

Can a Single Singapore Permanent Resident Purchase an HDB Flat?

If you're pondering whether a single PR can buy an HDB flat, the unfortunate answer is no. Single PRs are not permitted to purchase either a new HDB flat or a resale flat on their own.

According to HDB regulations, a PR can be eligible to purchase an HDB flat through two schemes: the HDB Public Scheme, which involves purchasing with a family unit (such as a spouse, children, siblings, or parents), or the Fiancé/Fiancée Scheme, which allows purchasing with a fiancé or fiancée.

If you are two PRs forming a household (with no Singapore citizen in the family or marriage unit), you are not permitted to buy new, subsidized HDB flats offered by the government, such as BTO flats or Sale of Balance Flats (SBF) units. However, you can still purchase a resale flat with another PR, subject to certain conditions being met.

Let's delve into the details of purchasing a new HDB flat for PRs first.

HDB New Flat Eligibility: HDB Public Scheme

Within the framework of the HDB Public Scheme, a PR is permitted to acquire a new HDB flat, such as a BTO flat, solely if they are married to a Singapore Citizen. The eligible flat types for purchase are limited to 2-room Flexi, 3-room, 4-room, and 5-room flats. Additionally, there exists an income ceiling corresponding to each flat type. Fulfillment of various PR HDB flat eligibility criteria is necessary when considering the purchase of new HDB flats, including:

- Minimum age requirement of 21 years. - Prohibition against selling or leasing out the entire flat during the Minimum Occupation Period (MOP). - Adherence to the Ethnic Integration Policy (EIP) or PR quota for the block/neighbourhood during the resale flat application submission. - Absence of ownership of any private property in Singapore or overseas by all buyers in the HDB resale flat application. Additionally, there must be no disposal of any private residential properties at least 30 months before applying for the HDB First Appointment (HFE letter).

For first-timer households consisting of one Singapore Citizen and one or more PR(s), a $10,000 premium applies when purchasing a flat. However, eligibility for the Citizen Top-Up Grant arises upon acquiring Singapore citizenship or having a child who is a Singapore citizen.

PR HDB New Flat Eligibility: Fiancé/Fiancée Scheme

For applicants under the Fiancé/Fiancée Scheme, the eligibility criteria closely mirror those of the HDB public scheme, with the sole distinction being that marriage has not yet occurred.

Marriage solemnization must take place within three months following the completion of the HDB flat purchase. If the prospective spouse is between 18 and 21 years old, parental/guardian consent is necessary. If below 18 years old, a Special Marriage License is required, which must be presented during the flat booking appointment.

Can a PR Receive CPF Housing Grants to Buy New HDB Flats?

Absolutely! Eligible families may qualify for the Enhanced CPF Housing Grant (Families) and/or Step-Up CPF Housing Grant (Families).

How Can PR Purchase a Resale HDB Flat? A 7-step Guide

1. Obtain the HFE Letter

Access the HDB Flat Portal to apply for the HDB HFE letter. Once processed, HDB will notify you via SMS, typically within a month. The HFE letter remains valid for nine months.

2. Apply for an IPA if Financing with a Bank Loan

For those opting for a bank loan, apply for an In-Principle Approval (IPA) from participating Financial Institutions (FIs) through the HDB Flat Portal. Alternatively, apply for an IPA with PropertyGuru Finance to receive results within seven working days. Assess various bank loan options using PropertyGuru Finance's mortgage comparison tool to find the most favorable interest rates.

3. Search for a Resale Flat and Ensure Compliance with EIP and PR Quotas

Utilize your loan eligibility to determine affordable flats. Explore PropertyGuru's extensive database of HDB resale flat listings, filtering by price, location, size, floor level, and other preferences. Additionally, ensure compliance with the Ethnic Integration Policy (EIP) and PR quota for your desired property.

4. Negotiate Price and Execute OTP

After assessing finances and identifying a suitable property, negotiate the price with the seller. To avoid overpaying, compare resale flat prices within the estate or block. Utilize resources such as recent HDB resale transactions or similar listings on PropertyGuru for pricing benchmarks. Once negotiated, secure the Option to Purchase (OTP) and pay the associated fee, typically ranging from $1 to $1,000. Conduct an HDB valuation and settle any Cash Over Valuation (COV), if applicable.

5. Obtain Letter of Offer (LO) if Opting for Bank Loan

For those securing a bank loan, obtain the Letter of Offer (LO) to confirm housing loan details. Each bank may have different eligibility criteria, necessitating thorough verification. Seek guidance from Mortgage Experts or explore mortgage options with PropertyGuru Finance, which offers up to $700 worth of shopping vouchers for eligible applicants.

6. Exercise OTP and Submit HDB Resale Flat Application

Upon confirming intent to proceed, pay the option exercise fee (not exceeding $5,000) within 21 days of OTP signing. Subsequently, settle relevant fees and taxes, including administrative fees and Buyer’s Stamp Duty (BSD) rates. PRs purchasing HDB flats without accompanying Singapore Citizens are subject to a 5% Additional Buyer’s Stamp Duty (ABSD) for their first home purchase.

7. Attend Resale Completion Appointment and Collect Keys

Upon successful HDB resale flat application, HDB will schedule a Resale Completion Appointment. Both buyer and seller must attend for ownership transfer and key collection, marking the culmination of the home acquisition process.