Steps to secure a BTO in Singapore

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These days the new term of saying ‘I do’ for Singapore young couples is ‘let’s BTO together’. It has become a norm among all new Singaporean adults to apply for BTO flats whenever there’s a new BTO launch in the non-matured estates. Saying ‘let’s BTO together’ seems easy but the processes to secure a BTO flat could be tedious and long winded if it’s not understood. Here’s a simplified guide on getting your very first Singapore’s very own BTO flats. Steps to secure a BTO in Singapore.

1^st is to check your eligibility

In Singapore, there are many types of HDBs available in the market and different HDBs have different requirements for Singaporeans. As for new BTO flats, first thing first is your nationality, Singaporean first followed by your age and income ceiling. Well, for age, it has to be above 21 years old and for income ceiling, it varies. It varies because of the grant available for applicants, the higher the household income, the lesser the amount of grant given. Apart from those, to apply for BTO new launch, you can’t have any records of your previous HDB transaction or any property ownership transfer. 

2^nd is to begin balloting

After checking your eligibility, you may start balloting for your unit! Then, you may start praying hard to strike it like striking lottery! Some lucky applicants may get during their first try or second try. Some may even wait up to 10 tries. However, the number of households of the applicants will dictate the number of chances they have for balloting. For example, married with children will have four chances during the first application and 2 chances for second application, it varies. Once ballot your application, you will have to wait for about one to two months to get the results.

3^rd is to get a loan

Getting through second step is tough, now, you’re almost there owning your new BTO flat. Loan application for the BTO flat. In year 2013, the government has announced a regulation called Total Service Debt Ratio (TSDR) which is to ensure that banks are not to loan out to applicants with commitments of more than 60% of their monthly income. Fret not, there’s HDB loan available for application to. But for HDB loan there are criteria needed to be fulfil. Apart from similar eligibility to BTO launch/report for loan application such as Singapore citizen and household income below $12,000, there are other criteria as well.

• You must be an applicant for HDB flat

• You must be 21 year old and above

• Your gross monthly household income is below $12000 ($18000 for extended families)

• You do not own, or have not owned any residential private property in the 30 months before the application for the HDB loan

• You do not own more than one market/hawker stall or commercial/industrial property

• If you do own a market/hawker stall or commercial/industrial property you have to work in it yourself

Do get an HDB Loan Eligibility letter (HLE) if you’re taking HDB loan and if you have hit the criteria above.

4^th is to pick your unit

Your priority in choosing a BTO new launch unit depends on your queue number. Usually, the number of units will be outnumbered by the number of people allotted queue numbers. Well, if your queue number is way behind, the chances for you to land a unit are slim and you will need to ballot again. There are documents needed to bring when booking your flat at HDB Hub. You will need to bring your IC and pay slips, if you’re taking house loan from HDB, you’ll need to bring your HLE. After selecting your unit, you will need to pay an option fee on the spot. Different flat, different amount of option fee. For 2-room flexi flats is $500, for 3-room fats is $1,000 and 4 room or larger is $2,000.

5^th is to sign agreement for lease

Within four months of your BTO flat booking, you’ll need to sign the lease agreement. Upon signing, you’ll also need to submit a Letter of Offer if you’re obtaining a house loan from banks. That’s when you are required to pay for your down payment, legal fees and stamp duties. Your amount of down payment depends on your loan options, HDB or bank loan. If you’re taking HDB loan, you are required to only pay 10% down payment of the purchase price. On the other hand, for bank loan, you will need to pay 20% down payment of purchase price for loan ceiling of 80%, mode of payment is 5% in cash. As for legal fees and stamp duties, the rates are first $180,000 will be 1%, next $180,00 is 2% and the remainder is 3%.

6^th is to collect your keys

The last step to secure your BTO flat is to collect your keys in three years’ time. You may start marking in your calendar and countdown the day to collect your keys. Do remember to bring your documents and completed GIRO form (monthly instalments) when claiming your keys!

Wishing you Good luck and succesfully secured a BTO in Singapore. All the best!