6 Steps to Buy Your HDB without an Agent

Ohmyhome May 06, 2016

By: Airyn Ang

Buying an HDB home is a big commitment. It involves a huge sum of money and a substantial amount of time. It is challenging for any layperson to find their perfect home especially when searching for HDB resale that were often not widely publicised. However, searching for HDB resale is no longer as tedious. With Ohmyhome, even people with no strong housing network can find their ideal home. Buying an HDB resale unit can definitely be done swiftly while you save thousands of dollars from your pocket.

STEP 1: Check Eligibility to Buy

Before proceeding with the searching process, buyer would have to ensure your HDB Eligibility to buy an HDB resale flat.

This would include the requirements on the eligibility to purchase a HDB flat and having the sufficient amount of funds to proceed with the purchase.

This can be done through the HDB InfoWEB. If buyer currently owns a HDB make sure that the Minimum Occupation Period (MOP) is fulfilled so that it can be eligible for sale. Buyer will have to dispose off any HDB or Private housing within six months of the confirm HDB purchase.

Buyer also have to keep in mind to check on the Ethnic Integration Policy and Singapore Permanent Resident quota eligibilityof the block you are interested in. Both will determine whether there is a restriction on your buying eligibility.

Step 2: Determine your budget

Look into your cash savings, CPF savings, obtainable housing loan and CPF housing grants to ensure that you have sufficient funds for your HDB purchase. (Housing loan could either be provided from HDB or private financial institution.)

The following tools would help in determining you available budget for your HDB purchase:

  • Resale Flat prices will help to generate a better gauge on the price of the property.
  • (HDB Loan) Resale Financial Plan can help to calculate the estimated loans, monthly instalments, stamp duties and conveyancing fees, and check on the remaining lease of the flat you are purchasing.
  • Sales Proceeds Calculator for existing HDB owners to calculate how much funds will be available from the HDB sale. (Buyers do keep in mind that you will be required to dispose off your existing HDB flat or private housing within six months and you will need to fulfill the MOP before selling or renting is eligible.)

Do set aside some cash and CPF savings as they are required for HDB valuation fees, administrative fees, legal fees and stamp duties, renovations and other HDB Resale costs. Buyer would need to have a valid HDB Loan Eligibility (HLE) letter from HDB or a Letter of Offer from the financial institution before entitled to proceed with the purchase.

Step 3: Source for Sellers

After determining your available budget, one useful tool to search for resale HDB would be Ohmyhome app. It is a newly launch mobile application that is available on both android and apple devices. Ohmyhome serves as a platform for buyers and sellers to find each other without the help of the agent. This would help save $5,000 to $10,000 on agent commission. What is better is that Ohmyhome is absolutely FREE.

Sellers would list their property, whether it is for selling or renting purpose, and interested parties would communicate with them directly. Each mobile number could only list a single address, hence buyers would not have to worry that the listing are false. Ohmyhome team would also conduct regular checks to ensure that each listing is authentic.

Ohmyhome is designed to facilitate buyer’s housing search process. On the listing explore page, two rings could be seen on the location map, a smaller ring of 1km radius and a bigger ring of 2km radius. The 1km ring is programmed to help parents gauge where to relocate for the enrollment to their children’s schools. The 2km radius is designed to help buyers that are looking to tap on the Living with/near Parents Housing Grant.

However, for buyers that are concern and feel that they will require a professional agent, Ohmyhome do provide such services as well. To find out more on the FREE mobile application search Ohmyhome on Facebook and Instagram for constant updates and free goodies. You may also subscribe to our YouTube channel to get app updates.

Try Ohmyhome App now and find your perfect home.

Step 4: Resale Checklist for Sellers/Buyers

Upon coming into consensus with the seller, both parties could now proceed with the resale transaction.

The price of the flat and other issues such as what will be included in the sale is to be sorted out before the signing of the agreement. The seller would issue a prescribed HDB Option to Purchase (OTP) and would have to refrain from dealing with another other party within the option period. The OTP is granted with an option fee that is decided between both parties that could not be more than $1,000. Buyer will have 21 days to consider and exercise. OTP must be returned to the seller on the 21st day by 4pm.

Buyer also has to have the following before exercising the OTP. * Complete the HDB resale checklist online.

  • Obtain a valid HLE from HDB or a Letter of Offer from a financial institution.
  • Obtain a valid HDB Flat Valuation Report, if buyer is taking on a HDB or Bank Loan and using CPF funds to buy or service the loan instalments.

Buyer has to apply to HDB for valuation by the next working day after the option date. Only with the above then could the Buyer proceed with exercising the OTP and pay a deposit to the seller that is less than $5000 (inclusive of the option fee paid earlier).

Step 5: Submit Resale Application

After buyer exercise the OTP (After fulfilling the requirements and paid the remaining deposit of not more than $5,000 inclusive of the earlier paid Option fee) both buyer and seller have to go on the HDB InfoWEB to submit the Resale Application.

But before doing so, both parties have to agree upon a date and time-slot for the first appointment with the HDB Customer Relations Manager. Either party can submit the resale application online first but just ensure that the second party would do so within 7 days after which. The second party will book the first appointment date on behalf of both parties. HDB will send out letters to both parties confirming the date and time-slot and the documents required.

Both buyer and seller can monitor the status of their transaction using the Progress Tracker on MyHDB page.

Step 6: First Appointment and Completion

On the date of the first appointment, proceed to level 2 of the HDB Hub Atrium, register at the self-service ticketing kiosk to get a queue ticket.

If Buyer has taken a HDB loan, the officer will go through the use of CPF money, financial plan and inform on things to be paid. If bank loan is obtained, officer will verify the amount of mortgage loan taken and the financial institution will finalise the financial plan. Cash payment may be required if the valuation is above the market valuation or if loan amount obtained and CPF money withdrawn are insufficient to cover the price.

Follow through with the Customer Relations Manager and within 2 weeks after first appointment, both parties will receive an approval letter from HDB. The completion of the resale transaction will be scheduled about 6 to 8 weeks from the date of first appointment.

Between the 6 to 8 weeks, Buyer has to prepare cashier’s order for the balance cash payment, if needed. Buyers should also inspect the flat to make sure it is vacant.

On the date of completion, buyer has to prepare the cashier’s order and purchase the Fire Insurance from the HDB appointed insurer if a HDB loan is obtained. Buyer will also sign the mortgage document (if taking on HDB Loan) and the letter of confirmation will be given for the confirmation of the resale flat. This would conclude the resale process.


Ohmyhome understands that DIY may not be for everyone, thus, we are here to help with our Fixed Rate Agent Services if you need more assistance:

Or you may call us at 6886 9009 to secure an appointment today.

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