Planning on getting a resale HDB in the open market? In between trying to find that perfect unit in the perfect location, and also not being able to get a bank valuation on your intended purchase without first spending on a downpayment (What the heck right?!), it could seem quite daunting.
Here’s what you’ll need to do to buy a resale HDB:
1) Once the Holy Grail of resale flats has been found, you and the seller will have to negotiate on the resale price of the flat.
What will help you to figure out a pricing for the flat since you can’t get a bank to do it at this point, is the Resale Flat Prices e-Service. This will show you the resale transacted prices of HDB flats over the past 2 years.
2) To secure your Option to Purchase with the seller, you will have to pay an option fee of between $1 to $1000 (decided between buyer and seller) after which the seller cannot grant another OTP until your option expires.
3) The Option period is 21 calendar days including Saturday, Sunday and public holidays during which time you are now able to submit it to HDB for a valuation report. This needs to be done if you intend to use your CPF for payments, or take up a HDB or bank loan to finance the purchase. (This pretty much means all of us.)
4) At this point, if you intend to take up a bank loan, you need to start searching asap as your will not be able to exercise your OTP with HDB should you not have a loan in place by that time. You can check the latest home loan rates here.
5) Exercise your OTP and pay the seller a deposit.The deposit, including the Option Fee previously paid, must not exceed $5,000 in total. The amount of deposit is negotiated between the you and sellers and will usually be in the region of $1 – $4000.
6) Book your first HDB appointment. This is where the resale application is considered and HDB checks your eligibility and grants approvals etc. You can also apply for any grants from HDB at this point.
7) 4 – 6 weeks later you will be called in for your second appointment where completion will take place.