16 MAY 2023 – HFE stands for HDB Flat Eligibility and it is an important letter that you will need before buying a BTO flat from HDB or a resale flat from the open market. Well, if the letter sounds unfamiliar to you, it is because the HFE letter is new – it replaces the HLE letter on 9 May 2023.
1. What is the HFE letter?
The HDB Flat Eligibility Letter (HFE) is a document which summarises everything you need to know about your eligibility to:
- Buy a new BTO flat from HDB or resale flat
- CPF Housing grants and grand amounts
- HDB Housing loans and loan amount
It also provides information on the resale levy that you will need to pay if you are purchasing another subsidised flat from HDB.
2. What is the difference between the new HFE letter and HLE letter?
The new and updated HFE letter replaces the old HLE letter from 9th May 2023. Previously, the HLE letter only assess your eligibility for HDB housing loan, now the HFE letter streamlines the process to assess your eligibility for flats, grants and housing loans all in one letter. There will also be a standardisation of income assessment period to 12 months instead of 3 or 6 months.
New HDB Flat Eligibility (HFE) Letter contains:
- Type of flat you are eligible to buy
- Amount of grants you are eligible for (including CPF Housing Grant, Enhanced CPF Housing Grant, Proximity Housing Grant)
- You eligibility for a HDB Housing Loan including loan amount and repayment period (if applicable)
3. When do I need to apply for the HDB Flat Eligibility (HFE) Letter?
New HDB flats (BTO)
You will need to apply for the HFE before the online Build-To-Order (BTO) sales exercise or Sales of Balance Flats (SBF).
*You do not need an HFE letter if you have already applied for a flat from HDB before 9th May 2023. HDB will invite you to apply for an HDB Loan Eligibility (HLE) letter before you book a flat, if you are shortlisted and wish to take on an HDB housing loan.
Resale flats
You will need to apply for the HFE before getting an Option-to-Purchase (OTP) from the seller and when you submit your resale application.
Your HFE letter will be valid for 6 months.
4. How to apply for the HDB Flat Eligibility (HFE) Letter?
Step 1: Complete the Preliminary HFE Check
Log in to the HDB Flat Portal via Singpass. The required information will be extracted via MyInfo. Fill in other information such as particulars of flat applicants and occupiers. Based on the information you have provided, you will receive an instant preliminary assessment confirmation of your eligibility to buy a HDB flat, CPF Housing Grants and loan information.
Step 2: Apply for a HFE Letter
Once you have completed the preliminary check, you need to apply for the HFE letter via the HDB Portal using your Singpass. During this application process, you will need to provide supporting documents and confirm your HFE details. You will also be able to see and compare the HDB Housing Loan packages and banks via the HDB Portal. Once you have confirmed, HDB will process your application and notify you of your eligibility within 21 working days.
*Processing time may be longer during peak periods (e.g in the months of and before a sales launch). You are encouraged to apply for an HFE letter early.
The HDB housing grants and subsidy criteria/ income ceiling remains unchanged with the new HDB Flat Eligibility (HFE) letter.
Read more: How increasing land cost affects the property market?
