How to Pay for a Resale HDB Flat

A Step-by-Step Guide

A Breakdown of the Costs and Fees Involved when Purchasing a Resale Flat

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It is also important to note that the costs and fees differ should you decide to take up an HDB loan or a bank loan.

Let’s use a Singaporean couple John and Jane who are purchasing their first residential property as an example.

Combined income: $6,500 per month

Combined CPF savings: $35,000

Property type: 3-room HDB resale flat

Unit’s Selling Price: $450,000

If they take up an HDB loan:

With the new CPF Enhanced Housing Grant (EHG), the couple is allowed to receive $30,000 in grants. In addition to that, they can also receive $50,000 in grants (CPF Family Grant).

They intend to mostly fund the acquisition with a 25-year HDB loan amounting to $390,000. They also plan to repay their mortgage instalments utilising their CPF monies.

Assuming the couple intends to apply for an HDB loan, below is a breakdown of their payments.

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As shown above, the buyers will need to pay about $15,132 in cash, given that the HDB loan, CPF savings and grants would only cover the selling price of the flat or $450,000. Please note that HDB loan will be first deducted from CPF Savings, before paying for the rest.

If they take up a bank loan

Everything else being the same as the above situation, let us assume the couple qualified for the maximum Loan-to-Value (LTV) ratio of 75%. This means they can only loan $337,500 to buy the $450,000 flat. They also engaged an external lawyer to assist them with the deal, particularly with conveyancing. For this, the couple agreed to pay the attorney about $2,800 for his legal service. Below is the financial breakdown of the transaction.

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The overall cost is roughly the same compared to using an HDB loan, but the couple will need to pay more money out of their own pocket, as their CPF savings, CPF grants and bank loan only total $397,500, given the 75% LTV.

Resale Application Procedure

1. Register Intent to Buy

2. Search for Suitable Flat and Get Option to Purchase (OTP)

3. Choose Mode of Financing

4. Submit Request for Value to HDB

5. Submit Resale Application

6. Acknowledge Resale Documents

7. Pay Fees (Online Payment)

8. Approval of Resale

9. Completion of Resale


We would love to help you get the most out of your property.

Should you be thinking of selling, or would simply like an update of where your property sits in today's market, book a non-obligatory discussion with one of our TemasekClass consultants.