HDB to extend the validity period of HFE letters from 6 to 9 months
The extension will take effect from 7 November 2023 for all existing and newly issued HDB HFE letters.
SINGAPORE — The Housing and Development Board (HDB) will extend the validity period of all existing and new HDB Flat Eligibility (HFE) letters to nine months from the date of issuance, up from the current six.
In a press release on Saturday (4 November), HDB said the extension would offer "greater convenience for flat buyers in their home buying journey" by allowing both new and resale flat buyers more time to secure a home, as well as reduce the number of subsequent applications when their existing HFE letters expire.
The extension of the HFE letter validity period will take effect from 7 November.
The HDB Flat Eligibility (HFE) letter, which replaced the HDB Loan Eligibility (HLE) letter, was implemented on 9 May to provide those looking to buy an HDB flat with an assessment of their housing and financing options before purchasing.
It contains upfront information such as a prospective buyer's eligibility for new and resale flat purchases, the amount of CPF housing grants they can receive, and the corresponding HDB housing loan amount.
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Flat buyers are required to have a valid HFE letter before they can apply for a flat during Build-To-Order (BTO) sales launches. Similarly, resale flat buyers must have a valid HFE letter before they obtain an Option to Purchase (OTP) from flat sellers and submit their resale application to HDB.
Since implementing the HFE letter, HDB said it has processed more than 65,000 applications from both resale and new flat buyers, of which 60,600 applications were approved and issued with HFE letters.
Most recently, about 11,000 of those with valid HFE letters applied for a flat in the October 2023 BTO sales exercise.
HDB has advised flat buyers keen on applying for a flat in the upcoming December 2023 BTO sales launch to apply for an HFE letter and submit all the required documents by 11 November 2023, as it generally takes about a month to process an HFE letter application and may take longer during peak periods such as a BTO sales launch.
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