What is HFE?
The Housing and Development Board (HDB) of Singapore has recently introduced a new process for assessing buyers’ eligibility to buy an HDB flat, receive grants, and take up a housing loan. This new process is called the HDB Flat Eligibility (HFE) Letter, and it replaces the old HDB Loan Eligibility (HLE) letter.
Previously, buyers’ eligibility was assessed at various stages in the flat-buying journey. This could be a time-consuming and confusing process, as buyers had to navigate multiple applications and assessments. However, with the introduction of the HFE Letter, this process has been streamlined into a single application for greater convenience.
The HFE Letter provides buyers with a holistic understanding of their housing and financing options. It helps them plan their flat budget before they embark on their home-buying journey. If they are second-timers, it also provides information on the resale levy/premium that they will have to pay if they purchase another subsidized flat from HDB.
In addition to streamlining the eligibility assessment process, the HFE Letter also offers an integrated loan application service. Buyers can request an In-Principle Approval (IPA) from participating financial institutions (FIs) concurrently when they apply for an HFE letter. The IPA provides them with the FI’s indicative loan assessment. Their chosen FIs will liaise with them directly on the outcome(s) of their IPA application, and they will be able to confirm the FIs’ loan offer through the HDB Flat Portal after securing a flat.
Comparing HLE and HFE processes (HDB Resale)
HFE Validity
From 7th Nov 2023, the HFE letter is valid for 9 months from the issue date. There will be no re-assessment during this period unless:
- There are no big changes in the incomes and financial positions of the household; and
- There are no changes to the applicant(s) and occupier(s) listed in the HFE letter application
How to apply for HFE
Here are the steps you need to follow:
- Log in to the HDB Flat Portal using your Singpass: https://www.hdb.gov.sg/cs/infoweb/residential/buying-a-flat/understanding-your-eligibility-and-housing-loan-options/application-for-an-hdb-flat-eligibility-hfe-letter
- Apply for an HFE letter. The HFE letter will provide you with a holistic understanding of your housing and financing options and help you plan your flat budget before you embark on your home-buying journey.
- If you are a second-timer, the HFE letter will also provide information on the resale levy/premium that you will have to pay if you purchase another subsidized flat from HDB.
- You can also request an In-Principle Approval (IPA) from participating financial institutions (FIs) concurrently when you apply for an HFE letter. The IPA will provide you with the FI’s indicative loan assessment.
- Your chosen FIs will liaise with you directly on the outcome(s) of your IPA application, and you will be able to confirm the FIs’ loan offer through the HDB Flat Portal after securing a flat.
Conclusion
Overall, the introduction of the HFE Letter represents a significant improvement in the flat buying process. It simplifies and streamlines the eligibility assessment process, providing buyers with greater convenience and a better understanding of their options. By making it easier for buyers to navigate the flat buying journey, the HFE Letter helps them make informed decisions and achieve their dream of homeownership.
If you require any professional advice on the HDB Flat Eligibility (HFE) Letter or the flat buying process, please don’t hesitate to contact me at +6597719040. I would be happy to assist you and answer any questions you may have.
