TOLONG 101: BTO
“Adulthood is like looking both ways before you cross the street, and then getting hit by an airplane.”
As young adults from a first world country like Singapore, we grew up in sheltered environments and have constantly been guided by our parents, teachers, peers and the government since pre-school that when the reality of adulthood comes, we have zero patience to dig for the necessary information that matters. And… that’s when you get hit by that airplane.
Because nothing is easy in life, right? But not to worry, here at TolongSG we will always be here to walk alongside you during this journey in life, we will guide and share information with you in meaningful ways that we can.
Now that you have a career and a happy and stable love life, the next thing that comes to mind would be to plan to buy a house. Yes, you’ll have to PLAN. Because it involves a lot of money and commitment.
In this article, I will be breaking down 2 important aspects of the BTO:
- Eligibility
- Plans for payment (HDB vs Bank loans) & Grants
Overview Process
First, let’s start off with a brief overview so that you have a clearer picture of the whole process. Here is an infographic with 8 Simple steps to the BTO process:

We will further break down each point for you below and in separate future articles:
- Check whether you’re eligible for a BTO.
- Go to HDB’s website here for the latest information on the areas that are opened for BTO and Sales of Balance ballot. HDB announces its upcoming flat launches every three months, and each BTO has a one-week application period, where you can apply online or at any HDB branch. Each application has an admin fee of $10.
- Place your ballots — The Waiting time: Approx. 1 month to notify you whether your application is successful.
Ballot chances are likely to increase in accordance to the following:
4. Deciding on a loan scheme — HDB loan (you’ll have to get an HLE letter to apply for this) vs Bank loan (you’ll have to apply for an Approval-in-Principle (AIP) from a desired bank).
5. In accordance to your combined salaries, check for the grants that you and your spouse qualify for — Special Housing Grant, Additional Housing Grant
6. Select flat (orders are based on your ballot queue number) — Waiting time between successful ballot to choosing flat: Approx. 2–3 months.
7. Pay the Option To Purchase (OTP) fee. At this point, you’ll also have to present the HLE or AIP.
An OTP is a document that gives you the right to purchase the flat. The fee is a deposit that you have to pay according to the type of flat you are purchasing, from $500 for a 2-room flat to $2,000 for a 4/ 5-room executive flat.
You will then have up to 21 days to exercise the Option, which means you have to confirm and make a final decision on the purchase the flat within this period.
Important notes:
http://www.hdb.gov.sg/cs/infoweb/doc/important-notes-on-option-to-purchase
8. Sign the agreement to lease.
9. Pay the: (i) down payment, (ii) stamp duties and (iii) conveyancing (legal) fees.
Down payment — money that you have to pay upfront. The amount depends on the type of loan you took:
For bank loans, down payment amount is 20% of the flat price — 15% of this amount can come from your CPF and housing grants, while the remaining 5% you have to pay in cash.
For HDB loans, down payment amount is 10% of the flat price. All 10% can be deducted from CPF and housing grants.
Stamp duties — tax money that we have to pay when we purchase a property in Singapore.
- First $180,000 –1%
- Next $180,000 –2%
- 181,000 and above — 3%
Conveyancing fees — The legal fees involved in purchasing a house. Can be paid via CPF:
- First $30,000 – 90 cents per $1,000
- Next $30,000 –72 cents per $1,000
- Subsequent amounts above $60,000 — 60 cents per $1,000
10. Collect your house keys upon completion of the flat!
Eligibility

How do you know if you are eligible to apply for a HDB BTO?
If you meet all the following criteria:
Eligible Applicant/ Family Nucleus
You will need to qualify for a new flat under one of HDB’s eligibility schemes:
- Public Scheme — you have a family with:
- Spouse and children (if any)
- Parents and children (if any)
- Children under your legal custody (for widowed/divorced families)
2. Fiancé/ Fiancée Scheme
- In this case, you will have to submit a copy of your marriage certificate:
- On, or before taking possession of your flat, if you applied for the grants
- Within 3 months if you did not apply for the grants
3. Orphans Scheme
- If you and your siblings are orphans and unmarried
- At least 1 of the deceased parents was a Singapore Citizen or Singapore PR
Citizenship
- At least 1 Singapore Citizen applicant
- At least 1 other Singapore Citizen or Singapore PR
Age
- At least 21 years old
Income Ceiling
(highest total monthly income per house)
- $12,000
($18,000 if purchasing with extended family and $6,000 for some non-mature estates)
Property Ownership
- You do not own other property overseas or locally, and have not disposed any within the last 30 months.
- You have not bought a new HDB/DBSS flat or EC, or received a CPF Housing Grant before; or, have only bought 1 of those properties/ received 1 CPF Housing Grant so far.
Adapted from: http://www.hdb.gov.sg/cs/infoweb/residential/buying-a-flat/new/hdb-flat
Plans for payment (HDB vs Bank loans) & Grants

Loan Schemes
- HDB Loan
- Lower down payment, less flexibility
- You will have to first apply for an HLE letter before you commit to purchase a HDB flat. The letter is valid for 6 months.
- Eligibility:
a) At least one buyer is a Singapore Citizen
b) Do not exceed monthly income ceiling of $12,000 for families
c) Must not have owned or disposed of any private residential property within 30 months before the date of application for HLE letter
d) Do not own more than one market/ hawker stall or commercial/ industrial property
e) If you own one market/hawker stall or commercial/ industrial property, you must be working in the business yourself and have no other sources of income
2. Bank Loan
- Higher down payment, greater flexibility
- You will have to apply for an Approval-In-Principle (AIP) from desired bank
Available Grants
- Special Housing Grant
- A subsidy for low to medium income families, grant ranges from $5000 to $20,000 and the monthly household income must not exceed $6,500 for a 12 months period before the flat application.
2. Additional Housing Grant
- For lower income families to buy their first flat — $5000 to $40,000 — household income must not exceed $5,000 a month, for a 12 months period before the flat application.
Does this article provide you with a clearer picture of how to apply for a house? If it does, please do leave us some comments and remember to like & share the article.
For more information, you can reach us at admin@tolongsg.com