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RES Course

Competency Unit 4B - HDB

Sale of HDB

  • Seller submit Intent to Sell
    • Wait for 7 days cooling period
    • 12m validity
  • Buyer apply HDB Flat Eligibility (HFE) letter
    • Eligibility for New/Resale, CPF Housing Grants, HDB Loan
    • Consider 12m income, ending 2m ago
    • Must be working
    • 6m validity
  • Buyer must comply with
    • Ethnic Integration Policy
    • SPR Quota Policy
      • Max non-Malaysian PR, neighbourhood 5% and block 8%
    • SPR need status > 3y
    • If sell private
      • Wait out 15m if w/o CPF Housing Grant
        • 30m if with grant
      • Exception for > 55yo moving to 4rm
  • OTP (read below)
  • Using CPF, must Request for Value
  • Extension of stay up to 3 months
  • Sale Proceeds
    • Pay bank outstanding first
    • Then CPF to return plus accrued interest, housing grant
      • If not enough, no need topup shortfall
  • Resale inspection: check for unauthorized
    • Must fix before completion


  • Only HDB prescribed OTP
  • Deposit max $5k, the norm:
    • Option Fee $1k (max $1k)
    • Option Exercise Fee $4k
    • Min $1 to be valid
  • Buyer pay option fee in cheque
  • Option expire 3 weeks, 4pm
  • During which can apply bankโ€™s Letter of Offer
  • To exercise, buyer has to sign the Acceptance, deliver, pay in cheque to seller
    • Seller can authorize agency/law firm to receive
    • Agents/lawyers cannot receive cash, so must be cheque
    • Agent can be witness

Use of CPF

  • Lease > 20y
  • Can use max OA
    • If can cover until youngest buyer 95yo
    • If not, pro-rated
  • The most complex of all.. try decipher CPF or their FAQ
    • Formula? (Lease - 20) / (95 - 20 - youngest)

Resale Levy

  • A subsidised flat is:
    • New or
    • Resale with CPF Housing Grant
  • Max 2 subsidised flats
  • A levy on the 2nd purchase, based on the 1st flat type
Based on 1st flat type Households Levy Amount
2-room $15k
3-room $30k
4-room $40k
5-room $45k
Executive Flat $50k
Executive Condo $55k

For singles, the levy is half.


The Schemes:

  • Public: family
    • SC + PR
    • PR + PR (both at least 3y)
  • Fiance
  • Single
    • 35yo
    • New: 2rm flexi
    • Resale: Any
  • Joint Single (up to 4)
  • Non-citizen spouse
  • Non-citizen family
  • Orphans: with siblings

Income Ceiling

  • New:
    • 3rm or smaller: $7k
    • 4rm or bigger: $14k
    • 3Gen: $21k
  • Resale
    • Impact CPF Housing Grant


All the CPF Housing Grants

  • Both New & Resale:
    • Enhanced CPF Housing Grant (1st timer)
    • Step-Up CPF Housing Grant (2nd timer)
  • Resale only:
    • CPF Housing Grants (1st timer)
    • Proximity Housing Grant (1st & 2nd)
  • For single, half the family grant, half the ceiling
  • If household is SC + PR, there is -$10k (when has citizenship, can apply citizen top-up)
  • Income ceiling applicable for new, while resale only affects the grants

Enhanced CPF Housing Grant

Household Income Family Grant
<= $1.5k $80k
<= $2k $75k
<= $2.5k $70k
โ€ฆ โ€ฆ
<= $8.5k $10k
<= $9k $5k
  • Memorize first row, then every +$500 income, -$5k grant, until $9k no more grant.
  • At least 1 worked for 12m
  • Lease must cover up to 95yo, if not pro-rated

Step-Up CPF Housing Grant

  • Upgrade from 2rm -> 3rm
    • Or Public rental -> 2/3rm
  • Income ceiling $7k
  • At least 1 worked for 12m
  • Grant $15k

CPF Housing Grant (Resale)

HDB 2-4 rm $80k
HDB >= 5 rm $50k
  • Household income ceiling $14k
  • Remaining lease > 20y

CPF Housing Grant (New EC)

EC, <= $10k $30k
EC, <= $11k $20k
EC, <= $12k $10k
  • Household income ceiling $16k

Proximity (Resale only)

Parents < 4km $20k
Live with parents $30k
  • Does NOT consider income ceiling

HDB Loan

  • HDB loan is NOT subsidised housing; It is an entitlement
  • Income ceiling
    • Household $14k
    • Single $7k
  • For 2nd HDB Loan, reduced up to half of cash proceeds
    • Means must use 50% of cash proceeds for 2nd purchase
      • Cash proceeds can only keep max($25k, 50%)
    • If want keep all, donโ€™t take HDB loan

HDB Shophouse

  • 1st level commercial
  • 2nd level residential
  • Considered a commercial property, but account for residential portion
    • Can own 1 HDB + 1 Shophouse, but must pay ABSD
  • Pay ABSD for the residential portion only
  • Pay BSD for commercial + residential portions accordingly
  • Foreigners can buy too, but if zoned for residential must approve by LDAU

Standard vs Plus vs Prime

ย  Standard Plus Prime
Location Islandwide Choicier Choicest
Subsidies Standard More Most
Subsidy Recovery No Yes 6% of resale
MOP 5y 10y 10y
Rent out whole flat After MOP โŒ โŒ
Wait-out for private 15m 30m 30m

Additional conditions for Plus & Prime resale flat:

  • Household must have SC
  • Income ceiling $14k

2-rm Flexi

  • For more than 55yo
  • Can lease 15-45y, as long as cover until 95yo
  • Income ceiling $14k
  • Previous 2 subsidised housing does not include studio/2-rm flexi/CCA

Community Care Apartments (CCA)

  • Similar to 2-rm Flexi, but:
  • More than 65yo
  • Can lease 15-35y, as long as cover until 95yo
  • Senior friendly

Silver Housing Bonus

  • When selling property (AV < $13k) to buying 3-rm or smaller
  • Topup RA $60k -> Get cash $30k

BTO Balloting

  • 2nd-timer 1 chance
  • 1st timer
    • 2 chances
    • 3 chances if FT(PMC)
      • Has a SC child < 18yo etc
    • +1 for every unsuccessful, after 2 unsuccessful, only for non-mature eg. For 3rd application, +1, 4th +2
  • Non-selection
    • Become โ€œ2nd-timerโ€ status, clear all those additional chances
  • Many Priority Schemes
    • Can choose up to 2
    • Set aside quota


Restrictions Against HDB Decoupling From 2016, MMDDFL:

  1. Marriage
  2. Medical Grounds
  3. Death Of An Owner
  4. Divorce
  5. Financial Hardship
  6. Loss Of Citizenship


  • Tenant pays Stamp Duty, unless stated otherwise
  • Landlord pays Property Tax & Conservancy fees
  • Expense
    • Allowable: Mortgage repayment, property tax, fire insurance, repair, etc

HDB Rental

  • PR or under MOP cannot sublet whole flat, but bedroom OK
  • Non-malaysian Non-citizen (NC) quota for whole flat
    • Max Neighbourhood 8%
    • Max Block 11%
  • Work Permit holders from the construction, marine, and process sectors must be Malaysians
  • Work Permit holders from the manufacturing sector must also be Malaysians, if renting whole flat
  • Min lease 6m
  • Only >= 3rm can rent out bedrooms, and the max number of occupiers (including owners) is the same as sublet whole flat
Sublet Flat Max unrelated occupiers
<= 2rm 4
3rm 6
>= 4rm 8

Private Rental

  • Min lease 3m
Sublet Private Max unrelated tenants
< 90sqm 6
>= 90sqm 8