Looking to BTO with your partner but unfamiliar with the process? Here's a basic guide for you ✨
1. Check Your Eligibility For BTO
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Here's some things to take note before applying for a BTO. Do ensure that both you and your partner have met the eligible conditions to apply! The minimum age would be 21 years old for both parties, and you'd have to be within the income ceiling for the flat you intend to purchase. Additionally, do ensure that you have sufficient funds to make payment for the flat.
Some other noteworthy things would be that you'd be unable to invest in private residential property from the date of flat application, up til after the 5 year minimum occupation period. That would mean that you wouldn't be able to purchase private properties for a stipulated period of 10 years, including the time required for the construction of your unit flat.
2. Payment During Flat Selection
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If you didn't know, payment has to be made during your first appointment for flat selection. This is not an additional fee but part of the downpayment to be paid for the flat, and it is known as an option fee with varying prices according to your flat of choice.
Here are the respective prices for option fees of each flat type: $500 for a 2-room flexi, $1000 for a 3-room, and $2000 for a 4-room flat and bigger. Additionally, the payment is to be made strictly by NETS.
3. Choosing Of Flat Unit
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Selecting your flat unit of choice has an element of luck to it, with it depending on your queue number. Having a small queue number would grant you a higher chance of getting your preferred flat, but all the same, do be prepared to have your choice being taken by someone else. To be on the safe side, shortlist at least 5 units to provide you with more options when selecting your units. While choosing your flat, do refer to both the development site plan and URA master plan to make a sound decision. While the development site plans gives you more insight on the HDB units, the URA master plan is equally important as well. It provides you with an idea of future development plans within the vicinity of your HDB blocks. If you'd prefer not to have the noise and pollution from renovation works, do use the URA master plan while selecting your unit.
4. Taking Of Loan And Downpayment
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If you're intending to take a loan for payment of your flat unit, do ensure that you have the necessary documents. You will be required to sign an Agreement for Lease with HDB 6 months after flat selection, and if you're taking a HDB housing loan, bring along a Home Loan Eligibility Letter. Alternatively, if you're taking a housing loan from a Financial Institution, ensure that you have a Letter of Offer with you.
You would also have to make a downpayment for your flat, with the amount depending on the type of loan you are taking. For a HDB Loan, you'd have to pay 10% of the purchase price, and it can be fully paid for with the CPF funds in your CPF ordinary account. For a loan from an FI, you're required to pay 20% of the purchase price, of which at least 5% must be paid with cash, while the remaining can be paid using your CPF savings.
5. Collection Of Keys
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Did you know that you can activate your utilities prior to collection of keys to your unit flat? This application can be done online, allowing you to check for defects and reduce your overall renovation journey in the meantime!
Additionally, remember to bring along all the required documents for key collection, with the more important documents being your Identification Cards, Certificate of Insurance, as well as your completed GIRO form (if you are making monthly loan instalments). With everything settled, collect your keys and enter your new home!
Hope this basic guide helped you in learning more about the BTO process! Wishing you all the best in finding a new home with your loved ones💖