How to Buy a BTO Flat in Singapore: Step-by-Step Guide (2025)
Build-To-Order (BTO) flats are the most common entry point for Singaporean households into property ownership. Managed by the Housing & Development Board (HDB), these flats are newly constructed and sold below market prices, subject to eligibility conditions.
Ensure you meet HDB’s criteria before proceeding. All applicants must obtain an HDB Flat Eligibility (HFE) letter via the HDB Flat Portal, which assesses eligibility for BTO flats, CPF grants, and loans. Apply early (at least 1-2 months before a launch) as processing can take up to a month; the letter is valid for 6 months.
Citizenship and Age
- At least one applicant must be a Singapore Citizen (SC).
- Co-applicant can be an SC or Singapore Permanent Resident (SPR).
- Couples/families: At least 21 years old.
- Singles: At least 35 years old (limited to 2-room Flexi flats; available across all estates from 2024 onwards).
- Widowed/divorced with children or orphans: At least 21 years old.
Family Nucleus
Form a valid nucleus under schemes like:
- Public Scheme: Married couples (with/without children), parents with children, or widowed/divorced with legal custody of children.
- Fiancé/Fiancée Scheme: Intent to marry within 3 months of key collection.
- Orphans Scheme: Siblings where at least one parent was an SC or SPR.
- Single Singapore Citizen Scheme: For singles aged 35+ (2-room Flexi only).
- Extended/Multi-Generation: Parents, married children, and siblings.
Income Ceilings
Income ceilings ensure affordability and vary by flat type and household. Monthly household income includes fixed allowances but excludes bonuses, overtime, and rentals.
HDB Income Ceiling by Household Type
| Household Type | Flat Type | Monthly Income Ceiling |
|---|---|---|
| Families (SC + SC/SPR) | 4-room or larger | $14,000 |
| Families (SC + SC/SPR) | 3-room | $7,000 or $14,000 (project-dependent) |
| Families (SC + SC/SPR) | 2-room Flexi (99-year lease) | $7,000 |
| Families (SC + SC/SPR) | 2-room Flexi (short lease, 15-45 years) | $14,000 |
| Extended/Multi-Generation Families | Any | $21,000 |
| Singles (35+) | 2-room Flexi | $7,000 |
Property Ownership Rules
- No ownership in local/overseas private property.
- If previously owned private property, must have disposed of it at least 30 months before HFE application.
- Cannot own another HDB flat or DBSS(must dispose within 6 months of BTO completion).
- First-timers: No prior HDB/EC purchase or grant; second-timers face restrictions and lower priorities.
Step 2: Understand BTO Launches and Flat Types
HDB conducts three BTO launches annually in February, June, and October, each lasting about one week. Projects vary by town, flat types (2-room Flexi to 5-room/3Gen), and classification. Check the HDB Flat Portal for details like locations, units, prices, and completion estimates. Applications are not first-come-first-served; all within the window are balloted. You can apply for one project per launch, selecting one flat type.
Key notes:
- Demand is higher for mature estates and Prime/Plus flats.
- Shorter Waiting Time flats (under 3 years) make up about 20% of supply in 2025.
- Prices start from around $140,000 for 3-room Standard flats after grants. Actual pricing will depend on project location as well.
For more details, see HDB’s announcement: HDB Launches 10,622 Flats in February 2025 BTO and SBF Exercises.
Step 3: Assess Priority Schemes
Priority schemes boost ballot chances for specific groups. First-timers get additional ballot chances (e.g., +1 per two unsuccessful Standard flat applications). Indicate eligibility during application.
HDB Priority Schemes
| Scheme | Eligibility | Ballot Advantage |
|---|---|---|
| Family and Parenthood Priority Scheme (FPPS) | First-timer couples with SC child ≤18 (or expecting); adoptive parents with order. | Up to 40% of BTO supply; priority for 4-room or smaller Standard flats. |
| Family Care Scheme (FCS) (Proximity) | Families/singles (35+) applying to live with/near (within 4km) parents/children; includes fiancés/singles. | Up to 30% for first-timers, 5% for second-timers; prioritizes living with over near. |
| Family Care Scheme (FCS) (Joint Balloting) | Parents and married/single children applying jointly in the same project (from Oct 2025). | Linked balloting for better chances; details forthcoming. |
| Third Child Priority Scheme (TCPS) | Families with ≥3 children; third child SC born ≥1987; legal custody for divorced. | Additional chances; up to 5% set aside in some exercises. |
| Seniors Priority Scheme (SPS) | Seniors (≥55) for 2-room Flexi; near existing home or family. | Up to half of seniors' quota in Standard/Plus, quarter in Prime. |
Non-selection when invited incurs a count, restricting future applications if excessive.
Step 4: Evaluate CPF Housing Grants
Grants reduce purchase costs and are credited to CPF Ordinary Account (OA) for offset. Eligibility assessed via HFE letter; tapered by income.
- Enhanced CPF Housing Grant (EHG): Up to $120,000 for first-timer families (lower-to-middle income); up to $60,000 for first/second-timer couples. Higher for Plus/Prime flats.
- Enhanced CPF EHG (Singles): Up to $60,000 for eligible singles.
Step 5: Prepare Documents and Finances
Gather:
- NRICs/passports.
- Income proof (12 months payslips/NOA/CPF statements).
- Marriage/ROM certificate, birth/divorce certificates.
Assess loans via HFE:
- HDB Loan: Up to 75% of purchase price or valuation, whichever is lower.
- Bank Loan (75% LTV): Up to 75% loan, tenure up to age 65, capped at 25 years.
- Bank Loan (55% LTV): Up to 55% loan, tenure up to age 75, capped at 30 years.
Step 6: Submit Application
Applications are submitted online during the one-week launch window. Key points:
- Pay a non-refundable administrative fee ($10).
- Select only one flat type in one project. Multiple applications per launch will be voided.
- Indicate priority schemes if applicable.
After submission, applications are processed for the ballot.
Step 7: Balloting and Queue Number
Balloting is a computerised process that assigns queue numbers. Factors influencing results:
- First-timers receive more ballot chances.
- Priority schemes give weightage.
- Demand-supply ratio determines competition.
A good queue number improves chances of selecting a preferred unit. If your queue number exceeds available units, you may not be invited for booking.
Step 8: Book Your Flat
Invited applicants review units online/HDB Hub. Select available unit; pay option fee via NETS at the HDB Hub during your booking appointment (included as part of downpayment):
- $500 (2-room Flexi)
- $1,000 (3-room)
- $2,000 (4-room+)
Step 9: Financing and Payment Structure
Sign Agreement for Lease (AFL) around estimated 9 months post-booking. Pay initial downpayment, stamp duty, and fees.
HDB Loan Downpayment Requirements
| Loan Type | Total Downpayment | At AFL | At Key Collection | Min. Cash Requirement |
|---|---|---|---|---|
| HDB Loan (75% LTV) | 25% | 2.5% (CPF/cash) | 22.5% (CPF/cash) | None |
| Bank Loan (75% LTV, tenure ≤30 yrs/to age 65) | 25% | 2.5% (cash) | 22.5% (CPF/cash, incl. 2.5% cash) | 5% total |
| Bank Loan (55% LTV, tenure to age 75) | 45% | 2.5% (cash) | 42.5% (CPF/cash, incl. 7.5% cash) | 10% total |
Staggered Downpayment Scheme (SDS):
The Staggered Downpayment Scheme lets you split your downpayment into two instalments instead of paying it all at once, reducing the upfront financial pressure.
First instalment – at Agreement for Lease signing
- With HDB Loan: 5% of the purchase price
- With Bank Loan: 10% of the purchase price (minimum 5% must be in cash)
Second instalment – at key collection
- With HDB Loan: The remaining 15% of the purchase price
- With Bank Loan: The remaining 15% (for 75% LTV) or 35% (for 55% LTV) of the purchase price
This arrangement gives buyers several years—typically the BTO construction period of 3 to 5 years—to get their finances ready.
Other Costs:
Buyer’s Stamp Duty (BSD): Payable at AFL (CPF allowable).
| Purchase Price or Market Value of the Property | BSD Rates for Residential Properties |
|---|---|
| First $180,000 | 1% |
| Next $180,000 | 2% |
| Next $640,000 | 3% |
| Next $500,000 | 4% |
| Next $1,500,000 | 5% |
| Remaining amount | 6% |
Use a stamp duty calculator for the exact amount.
- Legal Fees: $200-$500.
Additional Payments: Home Protection Scheme premiums, fire insurance ($100-$200/year, mandatory for HDB loans), survey fees (~$300).
Step 10: Wait for Construction
After booking and lease signing, you wait for construction.
Typical Timeline
- Standard BTO completion: 3–4 years
- Shorter-wait flats (announced since 2023): under 3 years
HDB publishes estimated completion dates in sales brochures. Delays are possible, though HDB has committed to faster delivery post-pandemic.
During the wait:
- Continue servicing any interim housing needs (rental, parents’ home, etc.)
- Accumulate CPF savings for future mortgage payments
Step 11: Key Collection and Final Payment
When the project receives its Temporary Occupation Permit (TOP), HDB notifies buyers to collect keys.
Before Key Collection
- Pay the balance of the downpayment (10% for HDB loan; 5% for bank loan)
- Pay any outstanding BSD, legal, or administrative fees
- Set up GIRO for monthly mortgage instalments
Key Collection Appointment
- Collect keys at HDB Hub
- Sign final legal documents
- Begin the Minimum Occupation Period (MOP) of 5 years, during which:
- The flat must be owner-occupied
- It cannot be sold or rented out as a whole unit
Step 12: Inspect and Report Defects
HDB provides a Defects Liability Period (DLP) of 1 year. Buyers should:
- Conduct a full inspection of walls, flooring, windows, and plumbing.
- Report issues via HDB’s Defects Inspection Portal.
- Rectifications are carried out by HDB’s appointed contractors.
Checklist for Buyers
- Pre-Application: Verify eligibility, get HFE, check CPF balances, identify priorities/grants.
- Application: Submit one per launch, pay $10.
- Post-Booking: Secure loan, budget for BSD/fees, select upgrades at AFL
- Ongoing: Monitor progress, save for payments.
Summary
The 2025 BTO process emphasizes early preparation with the HFE letter, leverages priorities and enhanced grants (up to $120,000), and accounts for new classifications with varying restrictions. With phased payments and SDS, it’s more accessible, but plan finances prudently given 75% LTV limits. Consult professionals like The Loan Connection for personalized advice; policies may evolve.
Disclaimer:
The information provided in this blog is for general informational purposes only and does not constitute financial advice. While The Loan Connection (TLC) strives to ensure accuracy, we make no guarantees as to the completeness, reliability, or timeliness of the information. Readers are encouraged to verify details independently and consult qualified professionals before making any financial decisions. TLC is not liable for any losses or damages arising from reliance on the content herein.
