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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, unless eligible for Deferred Income Assessment
6m validity
Deferred Income Assessment assesses grants and loan nearer to key collection
At least 1 party is 30yo or below
At least 1 party is a current or recent full-time student or National Serviceman
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
No wait for unclassified/Standard resale without CPF Housing Grant or HDB loan
Wait 30m for BTO, Plus/Prime resale, or a resale purchase with CPF Housing Grant or HDB loan
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
OTP
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 bank’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.
Eligibility
The Schemes:
Public: family
SC + PR
PR + PR (both at least 3y)
Fiance
Single
35yo
New: 2rm flexi across Standard, Plus and Prime projects
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
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
≤$1,500
$120k
≤$2,000
$110k
≤$2,500
$105k
≤$3,000
$95k
≤$3,500
$90k
≤$4,000
$80k
≤$4,500
$70k
≤$5,000
$65k
≤$5,500
$55k
≤$6,000
$50k
≤$6,500
$40k
≤$7,000
$30k
≤$7,500
$25k
≤$8,000
$20k
≤$8,500
$10k
≤$9,000
$5k
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
For SC+PR: grant is $10k less (if PR later converts to SC, can apply citizen top-up to recover $10k)
CPF Housing Grant (New EC)
Income <= $10k
$30k
Income <= $11k
$20k
Income <= $12k
$10k
Household income ceiling $16k
New EC Rules
For projects where the land tender closes on or after 8 May 2026:
MOP: 10y
Full privatisation: 15y
Deferred Payment Scheme: Not available
First-timer quota: 90% for the first 2y
Proximity (Resale only)
Parents < 4km
$20k
Live with parents
$30k
Does NOT consider income ceiling
If claiming “live with parents/child” grant, they must be listed in application and cannot be removed during MOP.
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
GREATER $25K POLICY
Cash proceeds can only keep max($25k, 50%)
If want keep all, don’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
Standard
Plus
Prime
Location
Islandwide
Choicier
Choicest
Subsidies
Standard
More
Most
Subsidy Recovery
No
Project-specific
Project-specific
MOP
5y
10y
10y
Rent out whole flat
After MOP
❌
❌
Wait-out for private, non-subsidised resale without grant or HDB loan
None
30m
30m
Wait-out for private, BTO or purchase with grant or HDB loan
30m
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
Similar to 2-rm Flexi, but:
From Oct 2026, applicants and spouses must be at least 55yo
Can lease 15-35y, as long as cover until 95yo
Senior friendly
Existing CCAs’ Basic Service Package fees will fall by 18-75% from Q2 2027
Silver Housing Bonus
At least 1 SC owner is 55yo or above
Household income <= $14k
Sell an HDB flat or private home with AV <= $31k, then buy a 3-rm or smaller HDB flat
Commit a net increase of up to $60k in RA and join CPF LIFE
Existing property
Buy 3-rm
Buy 2-rm or smaller
HDB or private with AV <= $21k
Up to $30k
Up to $40k
Private with AV > $21k and <= $31k
Up to $10k
Up to $20k
Fresh Start Housing Scheme
For families with children living in public rental flats
Buy a short-lease 2-rm Flexi or 3-rm Standard flat
First-timers can receive EHG up to $120k
Second-timers can receive $75k Fresh Start Housing Grant
$60k before key collection and up to $15k over 5y
MOP 20y
BTO Balloting
2nd-timer 1 chance
1st timer
2 chances
3 chances if FT(PMC)
Has a SC child < 18yo etc
After 2 unsuccessful Standard BTO attempts, +1 for each subsequent Standard application
Cap at 5 chances for FT(PMC), 4 for other first-timers
Non-selection
Become “2nd-timer” status, clear all those additional chances
Priority schemes
Family Care Scheme (Proximity): priority for married or single children to live with or within 4km of parents
Family Care Scheme (Joint Balloting): parents and children apply for 2 units in the same project offering 2-rm Flexi or 3-rm flats
Third Child Priority Scheme: up to 10% of BTO/SBF flats, including families expecting their 3rd child
Can apply for 1 scheme, or Family and Parenthood Priority Scheme plus 1 other scheme
Decoupling
Restrictions Against HDB Decoupling From 2016, MMDDFL:
Marriage
Medical Grounds
Death Of An Owner
Divorce
Financial Hardship
Loss Of Citizenship
Rental
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
Temporary 8-person cap applies to rentals ending by 31 Dec 2028
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
Sublet Private
Max unrelated tenants
< 90sqm
6
>= 90sqm
8
