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For many people looking to make their first steps onto the property ladder, getting a Build to Order (BTO) flat is a common route. One problem with going down this route is that the waiting time for picking up the keys can be about 3-4 years. For those who don’t want to wait that long before being able to settle into their new home, they can apply for the HBD Sale of Balance Flats (HBD SBF).
What is the HBD Sale of Balance Flat?
The HBD sale of balance flats Scheme is housing sales exercise that brings together unsold properties from past BTO launches, leftover flats from Selective En-bloc Redevelopment Scheme (SERS) projects and any other flats repurchased by HBD.
What are the differences between Sale of Balance Flats vs Build-to-order?
HDB Sale of Balance Flats have a shorter waiting time
This is the main difference between the two schemes. The construction of BTO flats will only start after two thirds of the plots are booked- this is why the process can often be roughly 3-4 years. HDB SBF flats are the sale of leftover flats that are either completed or that are further along the construction phase. This means that getting the keys and moving into the flat much more quickly- great news for those looking to buy their first home who don’t want to waste money on renting along the way.
HDB’s SBF offers you more locations to choose from
BTO launches tend to happen in 3-4 estates per year, and may not be in areas you wish to live in. They also offer unsold flats in various areas, so while there are less flats available, you will have more choice in the location when going through the application process.3) You’re less likely to find a HBD balance flat that you like
Since HBD flats are leftovers from other schemes, by taking part in this scheme, you’re up for a ballot to be able to pick the best flat from what’s left for you. These leftover flats may also be considered undesirable to buyers due to their location- for example, those on the ground floor that have high foot traffic or that are close by to garbage disposal units, or those with obstructed views. This isn’t the case for every unit, though- some may have had previous buyers who were picky or had changed their minds due to the long waiting period.
What is the eligibility criteria?
From 2020, unmarried parents can now apply to buy two or three room flat in newer estates if they are able to prove that they have stable employment or the available funds-- they will be considered for public rental if they have insufficient finances.
First-time, single applicants looking to buy an HDB SBF Flat will need to fulfil additional criteria:
They must be at least 35 if unmarried or divorced, or at least 21 if widowed or orphaned
Must meet the EIP or SPR quota for the flat for the area it is in
Monthly income must not exceed $7,000
Must be a citizen of Singapore
Here’s how to buy a HDB Sale of Balance Flat
Apply online
Once HDB announces unsold flats sales, you can begin to submit your application online, provided you need all of the eligibility criteria and that the application is made before closing.
Get your finances in order
If your application is successful, you will be shortlisted through a ballot on the computer- results tend to take around three weeks to come out. While waiting for the results, you will need to get your finances organized to prepare for an exchange on the flat. For those getting an HDB loan, you will need to apply for your HDB Loan Eligibility letter. And those applying for a bank loan will need to have proof of this with an Approval-in-principle letter from the bank.
Book your HDB flat
Once all of this is in place, you will need to book your flat according to your allocated queue number and the availability of units. When you go to the HDB Hub for your appointment, you will be shown what’s available and if you like them, you can book them following paying a fee- ranging from $500-$2000, depending on your unit size.
Collect keys and move in!
For flats that have already been built and completed, you can collect the keys and move in within 12 weeks. For those who are waiting on the completion of the build, you will have to wait until they are built before being able to collect the keys.