HDB Loan 2023: HLE replaced by HFE, Income assessment increased to 12 months (2023)

HDB has announcedchanges to how it will disburse housing grants for those looking to buy HDB flats.From 9 May 2023, HDB loan and housing grant applicants will have their incomes assessed over a period of 12 months, instead of three or six months.

The HDB loan eligibility letter is now replaced with the new HDB flat eligibility letter (HFE), which the board said will give buyers a clearer picture of their purchase costs and financing options.

In summary, two updates you need to know:

  • HDB loan and grants: Your 12-month income will be assessed (instead of 3 or 6 months previously)
  • HLE replaced by HFE (HDB Flat Eligibility Letter)

If this affects you and your upcoming HDB BTO, keep reading for more details about the changes.

HDB Loan 2023: HLE replaced by HFE, Income assessment increased to 12 months (1)

Does that mean I need to be working for full 12 months before I can apply for HDB?

Applicants do not have to be employed for a full 12 months, but must be working at the point when they apply for the HFE letter to be eligible for HDB loans. But to be eligible for the Enhanced Central Provident Fund (CPF) Housing Grant, they need to be employed for the full 12 months.

The cut-off date of the income assessment period is two months before an applicant applies for an HFE letter.

HDB said on Monday, 8 May 2023 that standardising the assessment period at 12 months – instead of three or six months previously – allows for more consistent assessments as jobs are fundamentally different in various ways, including remuneration structures. This will enable a clearer assessment of applicants’ income levels, especially for those whose incomes fluctuate from month to month. The new guidelines will apply when buying executive condominiums from property developers, and to schemes such as the Lease Buyback Scheme and Silver Housing Bonus.

HDB Loan 2023: HLE replaced by HFE, Income assessment increased to 12 months (2)

What if my household’s combined monthly income exceeds the $14,000 ceiling, but my average income across 12 months does not?

Applicants who exceed the household income ceiling of $14,000 can still be eligible for HDB loans and housing grants, as long as the household’s average income across 12 months is under the cap.

Mogul.sg chief research officer Nicholas Mak said the longer assessment period allows more people to be eligible for HDB loans and housing grants. “This is a more holistic way of looking at an individual’s income, and it puts less pressure on the authorities to increase the income ceiling, which would affect the wider housing market.”

(Video) Changes to housing grant disbursements: What HDB flat buyers should know

The change means more applicants would be eligible for HDB loans, which carry a concessionary interest rate of 2.6 per cent – pegged at 0.1 percentage point above the CPF Ordinary Account (OA) interest rate.

First-time buyers of two- to four-room HDB flats can get $80,000 in grants under the CPF Housing Grant, while those who buy five-room or larger units can get $50,000. First-timers buying HDB resale flats can also tapthe Enhanced CPF Housing Grant,which gives up to $80,000 in grants for families, and the Proximity Housing Grant of up to $30,000 for families.

In all, first-timer families can receive up to $190,000 in grants when buying a resale flat.

HDB Loan 2023: HLE replaced by HFE, Income assessment increased to 12 months (3)

How do I use my housing grants if I am an occupier and do not co-own the flat?

Housing subsidies will now be split equally between a first-timer applicant and occupier who form a core family nucleus.

Previously, all housing grants would be credited to the main owner’s CPF OA. A couple purchasing an HDB flat have the option to list one spouse as an essential occupier, with the other as the main owner who will finance the flat. An essential occupier is a family member “who forms a family nucleus with the applicant to qualify for a flat from HDB”, according to HDB’s website. An essential occupier does not have a share in the flat, even if he contributed cash to finance it.

Occupier will receive housing grants with OA interest gain

With the changes, the main owner will receive only half of the grants, while the other half will go into the occupier’s CPF OA.

The occupier will not be able to use his grants to fund the current flat. In the future, he will be able to use the grant only for public housing – HDB flats and exec condos from developers. He cannot use the grants for private properties or investments.

These funds will gain interest at the OA interest rate of 2.5 per cent per annum.

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An HDB spokesman said the main applicant “may wish to consider listing the core occupier as a co-applicant instead, if they would like to use the full grant amount for the flat purchase”.

After the flat reaches its minimum occupation period (MOP), the occupier can buy a private property as a first-time buyer, allowing him to avoid paying the additional buyer’s stamp duty (ABSD).

Huttons Asia senior director of research Lee Sze Teck said the change will create uncertainty in the HDB resale market as not every buyer will be able to use the full grant. “It may cool down the exuberance created by increasing the housing grant (in February 2023). However, there is no impact on the private housing market as the essential occupier can buy a private property after the MOP.”

Potential financial gain from housing grants outweighs ABSD

But Mr Mak said splitting the housing grants is not enough to discourage this method of avoiding ABSD.

“The potential financial gain from investing in a private property outweighs the inability to use the housing grants to finance the purchase of the flat initially,” he said.

“Furthermore, the HDB is rewarding the occupier by letting him keep the housing grant in his CPF account and earn 2.5 per cent interest in the meantime.”

He added that it would be more effective to label both the applicant and the occupier as co-owners of the HDB flat, so they would have to pay the full ABSD when buying a private home as their second property.

HDB Loan 2023: HLE replaced by HFE, Income assessment increased to 12 months (4)

If I am a Singaporean and my spouse is a permanent resident (PR), will the grants be disbursed to my spouse?

Yes, the grants will be disbursed to both the Singaporean applicant and the PR.

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Previously, housing grants would be disbursed only to the Singaporean applicant.

HDB Loan 2023: HLE replaced by HFE, Income assessment increased to 12 months (5)

If I am buying a flat with my child, will the grants be disbursed to my child?

No, the full grants will be disbursed to the parent, even if the child is helping to finance the flat.

The child will still be considered a first-timer buyer if he chooses to buy a flat in the future.

HDB said a first-timer child who is part of a core family nucleus with his parent will not be treated as having enjoyed the subsidy if he is single and listed as a co-applicant. He will also not be treated as such if he is listed as an occupier and is married or single.

HDB Loan 2023: HLE replaced by HFE, Income assessment increased to 12 months (6)

If I have a valid HDB loan eligibility (HLE) letter, do I need to apply for the HFE?

No, as long as the HLE letter is valid, the applicant does not need to apply for the new HFE.

However, when the buyer’s intent to buy or HLE letter has expired, he must have a valid HFE letter before he can be granted an option to purchase by a resale flat seller.

As of Tuesday, the flat-buying process is streamlined so that buyers just need to make a single application to get the HFE letter informing them if they are eligible to buy a new or resale flat, how much of the housing grants they can use and the HDB loan amount they qualify for.

Previously, the three aspects were assessed separately at different stages of the home purchase process.


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This article was first published on The Straits Times.

  • TAGS:
  • essential occupier
  • HDB
  • hdb loan
  • HFE
  • HLE
  • income accessment
  • property


What is the difference between HFE and HLE? ›

The HFE letter, which will replace the current HDB Loan Eligibility (HLE) letter, will inform flat buyers upfront of their eligibility for a new or resale flat purchase, CPF housing grants, and HDB housing loan, including the respective grant and loan amounts.

What is the meaning of HFE in HDB? ›

Application for an HDB Flat Eligibility (HFE) Letter. Official website links end with .gov.sg.

What is the maximum loan period for HDB loan? ›

HDB loans are capped at 25 years, while bank loans for HDB flats have a longer maximum loan tenure of 30 years. (However, the LTV will be reduced to 55% if the loan tenure exceeds 25 years.)

What is the income ceiling for HDB flats? ›

# The income ceiling for buying a flat from a property developer under the Design, Build and Sell Scheme (DBSS) will be raised from $12,000 to $14,000.

What does HFE positive mean? ›

Mutations (C282Y or H63D) are found in the HFE gene test. Abnormal results are called positive. An abnormal test result does not mean that you have hemochromatosis or that you will have hemochromatosis. It means that you have a mutation in the HFE gene.

What is HFE current gain? ›

The common-emitter DC gain (base-to-collector current gain, hFE) is calculated by hFE = IC/IB with VCE at a constant voltage. hFE is also called βF, the forward DC current gain. It is often simply written as β, and is usually in the range of 10 to 500 (most often near 100). hFE is affected by temperature and current.

What does HBD property stand for? ›

HDB property means any property which was sold or leased by the Housing and Development Board under the Housing and Development Act (Cap.

What does HFE stand for in business? ›

Major global operating companies are progressively adopting the human factors engineering (HFE) discipline to ensure quality, safety, and fit-for-purpose equipment and facilities.

What does HDB mean in construction? ›

HD/HDB Bolted Holdown - Tropical Construction Supply.

What is the interest rate for HDB loan in 2023? ›

The OA interest rate will be maintained at 2.5% per annum from 1 April 2023 to 30 June 2023. Correspondingly, the concessionary interest rate for HDB housing loans, which is pegged at 0.1% above the OA interest rate, will remain unchanged at 2.6% per annum from 1 April 2023 to 30 June 2023.

Is it better to pay off HDB loan early? ›

By paying your home loan early, you would reduce your outstanding loan balance and hence, eliminate interest payments. It will reduce the amount of cash required to meet your monthly expenses, thus helping you save significant money every month.

Should I empty my CPF for HDB? ›

Who is it for? CPF members who purchase an HDB flat and take an HDB loan can choose to retain up to $20,000 in their Ordinary Account (OA), with the remainder going towards their housing loan payment. Buyers taking a bank loan can choose to retain any amount of their OA savings.

How much income is too high for HDB? ›

What Is the Current BTO Income Ceiling?
BTO HDB flat typeIncome ceiling
4-room flat or bigger$14,000; or $21,000 if purchasing with extended or multi-generation family
3-room flat$7,000 or $14,000 depending on the project
2-room Flexi flat$7,000 for 99-year leases; or $14,000 for short leases (15 to 45 years)

Can foreigners buy resale HDB in Singapore? ›

Under the Residential Property Act, foreign nationals are permitted to own residential property in Singapore. However, there are certain restrictions on the type of property they may own. List of Properties Singapore PRs are eligible to Purchase: Resale HDBs – only with another Singapore PR or SG Citizen.

What is the ideal percentage of income for housing? ›

A popular standard for budgeting rent is to follow the 30% rule, where you spend a maximum of 30% of your monthly income before taxes (your gross income) on your rent. This has been a rule of thumb since 1981, when the government found that people who spent over 30% of their income on housing were "cost-burdened."

How common is HFE? ›

Frequency. Type 1 hemochromatosis is one of the most common genetic disorders in the United States, affecting about 1 million people. It most often affects people of Northern European descent. The other types of hemochromatosis are considered rare and have been studied in only a small number of families worldwide.

How much does the HFE test cost? ›

Hereditary Hemochromatosis DNA Mutation Analysis test cost is between $359.00 and $669.00.

What is the normal function of HFE? ›

Normal Function

The HFE gene provides instructions for producing a protein that is located on the surface of cells, primarily liver and intestinal cells. The HFE protein is also found on some immune system cells. The HFE protein interacts with other proteins on the cell surface to detect the amount of iron in the body.

What is HFE vs HFE? ›

'h' is for hybrid, 'f' is forward, 'e' is for common Emitter. The difference between hFE and hfe is: FE is for a fixed DC bias and a fixed DC current gain (and that must be specified for each value of hFE). hfe is the small signal AC current gain (and it is also specified for a given bias). hfe is frequency dependant.

What is the formula for current gain? ›

Current gain and voltage gain Ai = Pac dI iB Current gain (AI) is defined as the ratio of the output current to the input current of the transistor. For CE amplifier in forward active region, A; = Bac = dic – ic Voltage gain (Ay) is defined as the ratio of the output voltage to the input voltage of the transistor.

What is common current gain? ›

The current gain for the common-base configuration is defined as the change in collector current divided by the change in emitter current when the base-to-collector voltage is constant. Typical common-base current gain in a well-designed bipolar transistor is very close to unity.

What does HDB stand for? ›

The Housing & Development Board (HDB) is Singapore's public housing authority. We plan and develop Singapore's housing estates; building homes and transforming towns to create a quality living environment for all.

What does H and B mean in real estate? ›

HB: In real estate listings, HB stands for “half bath,” which means that the listed property has a bathroom with a toilet and sink (rather than an FB, or full bath, which also includes a bath or shower setup).

What does 2 1 mean in real estate? ›

A 2-1 buydown is a type of financing that lowers the interest rate on a mortgage for the first two years before it rises to the regular, permanent rate. The rate is typically two percentage points lower during the first year and one percentage point lower in the second year.

What is HFE in project management? ›

Definition: Human Factors Engineering (HFE) is the application of human factors knowledge to the design and construction of equipment, products, work systems, management systems and tasks.

What does HTD stand for in accounting? ›

Meaning. HTD. Hold 'Till Drop (investing strategy)

What is HBI in business? ›

HBI (Healthcare Business Insights)

What is HDB 5 year rule? ›

HDB MOP is a rule that restricts you from selling or renting out the entire flat during the first five years of moving in. During the MOP, you are also not allowed to buy another private property.

What is HDB approval? ›

For inclusion of new proposed tenants, flat owners must obtain HDB's approval before their new tenants may move into the flat. The renewal of an existing rental approval is considered a new application, and will be re-assessed according to the policies and regulations.

What is the HDB loan? ›

An HDB loan requires you to make a downpayment of at least 10% of the purchase price, which you can pay in full using your CPF Ordinary Account (OA) savings, with cash or a combination of both cash and OA savings.

How much will home interest rates rise by 2023? ›

Mortgage Bankers Association (MBA).

“Long-term rates have already peaked. We expect that 30-year mortgage rates will end 2023 at 5.2%.”

What is the new interest rate for 2023? ›

These rates are applicable from February 20, 2023. Bank of India offers interest rates between 3% to 7.15% for tenure ranging from 7 days to 10 years. These rates are applicable from April 1, 2023.

What will the average interest rate be in 2023? ›

As the Fed works to address inflation, borrowers can expect higher personal loan interest rates in 2023. Personal loan rates to increase slightly in 2023 due to pressure from the Fed. Average interest rates increased from 10.28 percent in early January to 10.96 percent in May 2023.

Is it advisable to clear HDB loan? ›

Pros: The Sooner You Pay off Your Mortgage, the Less Interest You Fork Out. It's a no-brainer: the more quickly you pay off your mortgage, the less interest you pay. For instance, if you want to upgrade from an HDB flat to private property.

Can I mortgage my fully paid HDB flat? ›

Yes, refinancing HDB housing loan can be done. However, since banks have an LTV of up to 75%, depending on how much of your flat you've paid off, you may or may not need to top-up in cash/CPF.

Is it cheaper to pay off a loan early? ›

You'll pay less in interest.

If you decide to pay off some or all your loan early, you won't have to pay the full amount of interest detailed in the original credit agreement. Under the Consumer Credit Act, the total amount of interest payable is reduced by a statutory rebate, which will be calculated by your lender.

What is the minimum sum for CPF 2023? ›

Starting in June 2023, the minimum monthly payout for non-CPF LIFE members (i.e. those enrolled in the Retirement Sum Scheme) will increase from $250 to $350. There is no change for members already receiving monthly payouts of $350 or more.

How much CPF can use for HDB less than 60 years? ›

Maximum amount of CPF that can be used
Age of youngest owner using CPF (in years)
Remaining lease of flat (in years)6080%
1 more row

Can I use CPF to buy HDB after 55? ›

Using CPF to repay housing loans after 55

This means that even if you have not met the Full Retirement Sum upon reaching 55, you can still use your Ordinary Account contributions for your housing loan repayments.

How much house can I afford if I make $70,000 a year? ›

If you're an aspiring homeowner, you may be asking yourself, “I make $70,000 a year: how much house can I afford?” If you make $70K a year, you can likely afford a home between $290,000 and $360,000*. That's a monthly house payment between $2,000 and $2,500 a month, depending on your personal finances.

How much should I spend on a house if I make $100 K? ›

A 100K salary means you can afford a $350,000 to $500,000 house, assuming you stick with the 28% rule that most experts recommend.

Can you buy house with $30,000 income? ›

These are important questions to ask yourself. While it's hugely situational, it is definitely possible to purchase a home if you're making $30,000 a year. As long as you have enough savings to make a down payment, have a good credit score, and have a decent debt-to-income ratio, you should be good to go!

Can US citizens buy property in Singapore? ›

Foreigners can only buy landed property in Singapore with approval from the Land Dealings Approval Unit (LDAU). Landed properties in Sentosa Cove are an exception to the rule and are available for sale to foreigners.

Can you buy HDB if you live overseas? ›

You and your spouse you can choose to acquire private residential properties locally or overseas if you can fulfil the eligibility conditions that apply to your flat.

How long PR can buy HDB in Singapore? ›

Who's eligible to buy an HDB flat? To buy a flat, you must be a Singaporean citizen or Permanent Resident (PR) who has lived in Singapore for at least three years. If you're a PR, you'll only be eligible to buy a Built To Order (BTO) flat if your spouse is a Singaporean citizen.

How much income do you need to buy a $650000 house? ›

To determine whether you can afford a $650,000 home you will need to consider the following 4 factors. Based on the current average for a down payment, and the current U.S. average interest rate on a 30-year fixed mortgage you would need to be earning $126,479 per year before taxes to be able to afford a $650,000 home.

What is the 30% income house rule? ›

What is the 30% Rule? Simply put, the 30% rule states that you shouldn't pay more than 30% of your monthly income for your mortgage. You should also lump in home insurance and property taxes into this amount. Those payments are part of the housing costs that really can't be avoided.

What is the 30% house rule? ›

Ever heard of the 30% Rule? It's the idea that you should budget a minimum of 30% of your gross monthly income (i.e., your before-tax income) for housing costs, and it's practically personal finance gospel. Rent calculators often use the 30% Rule as a default assumption to determine how much house you can afford.

How does HFE affect hepcidin production? ›

The HFE protein regulates the production of a protein called hepcidin. Hepcidin is produced by the liver, and it determines how much iron is absorbed from the diet and released from storage sites in the body.

How does HFE regulate hepcidin? ›

It has been proposed that HFE uncouples from TfR1 to form the HFE/TfR2 complex that enables up-regulation of hepcidin expression to decrease dietary iron uptake and reduce iron recycling from macrophages in response to transferrin saturation (14).

What does HFE mean in hemochromatosis? ›

Hereditary hemochromatosis is most commonly caused by certain variants in the HFE gene. If you inherit two of these variants, one from each parent, you have hereditary hemochromatosis and are at risk for developing high iron levels.

What does HFE gene mutation mean? ›

Mutations in the HFE (hemochromatosis) gene cause hereditary hemochromatosis, an iron overload disorder that is hallmarked by excessive accumulation of iron in parenchymal organs.

What happens when hepcidin increases? ›

High hepcidin levels block intestinal iron absorption and macrophage iron recycling, causing iron restricted erythropoiesis and anemia. Low hepcidin levels favor bone marrow iron supply for hemoglobin synthesis and red blood cells production.

Where is HFE expressed? ›

HFE protein has been detected in various cell types. It is expressed throughout the gastrointestinal tract as well as in macrophages and monocytes [4], [5].

What does high hepcidin concentration reduce? ›

Hepcidin decreases the level of iron by reducing dietary absorption and inhibiting iron release from cellular storage.

How can I increase my hepcidin levels naturally? ›

Short-term (acute) exercise may increase hepcidin levels. In a small clinical trial on 12 healthy people, both 60-min and 120-min runs increased hepcidin levels 3 hours after exercise. This may be due to the increase in IL-6 levels immediately after exercise [38].

What suppresses hepcidin? ›

Vitamin D suppresses expression of hepcidin (HAMP) in human monocytes and hepatocytes.

What regulates hepcidin? ›

Hepcidin is produced in the liver by hepatocytes and its expression is feedback regulated by iron.

What cancers cause high iron levels? ›

Leukemia cells show increased iron uptake and decreased iron efflux, leading to elevated cellular iron levels.

Should I be worried if my iron is high? ›

Excess iron is stored in your organs, especially your liver, heart and pancreas. Too much iron can lead to life-threatening conditions, such as liver disease, heart problems and diabetes.

What are the symptoms of too much iron in the body? ›

These signs may include:
  • Fatigue (feeling tired a lot).
  • General weakness.
  • Heart flutters or irregular heartbeat.
  • “Iron fist,” or pain in the knuckles of the pointer and middle fingers.
  • Joint pain.
  • Stomach pain.
  • Unexplained weight loss.
Jan 1, 2021

What is the most common HFE mutation? ›

The three most common coding-region mutations of HFE are: p. C282Y (exon 4; c. 845G→A; rs1800562); p. H63D (exon 2; c.

What is the treatment for HFE? ›

The treatment consists of phlebotomy, which during the preclinical stage and in the early clinical stage will ensure a normal survival rate. Since the symptoms and organ damages are often irreversible, it is important that treatment is started early, namely before symptoms and organ dysfunction have developed.


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