Discover the world of the Sale of Balance flat (SBF), a popular option in Singapore’s public housing market.Â
SBF flats are unsold units from previous sales exercises that offer shorter waiting times and lower prices than resale flats.
Find out about the eligibility criteria, income ceilings, and application process for SBF flats.
Explore the benefits of SBF flats, such as their location in peaceful non-mature estates.
Key Takeaways
| Key Takeaway | Information |
|---|---|
| Sale of Balance (SBF) Flat | – Scheme under HDB that allows eligible buyers to purchase unsold flats from previous sales exercises. – Typically located in non-mature estates and offered in 2-room Flexi and 3-room flats. – Two exercises held each year in May and November – Flats allotted through a ballot system. |
| Eligibility Criteria for SBF Application | – Must be a Singapore Citizen (SC) or a Permanent Resident (PR). – Must meet eligibility conditions related to Ethnic Integration Policy (EIP) and Singapore Permanent Residents (SPR) quota. – Must not own any other property in Singapore or overseas. – Must fulfill other HDB eligibility criteria. |
| Step-by-Step Guide to Buying an SBF Flat | – Check eligibility using HDB’s e-Service. – Submit an application online or in person during the sales exercise period. – Allotted queue number and balloting process takes place. – Successful applicants are invited to book flats and pay option fees. – Payment procedures and key collection date follow. |
| Benefits of SBF Flats | – Shorter waiting times compared to BTO flats. – Lower prices compared to resale flats. – Located in non-mature estates for a peaceful environment. |
| Difference between SBF and BTO Flats | – SBF flats are unsold flats from previous sales exercises, while BTO flats are newly built. – SBF flats are generally cheaper but offer fewer customization options than BTO flats. |
| Factors to Consider When Choosing SBF or BTO | – Price, location, waiting time, and customization options should be considered. – SBF flats offer shorter waiting times and are cheaper, while BTO flats offer more design flexibility. – Location varies between the two options. |
| Checking Flat Supply for Each Exercise | – Check flat supply through HDB website or mobile app. – Provides a list of available flats across various estates in Singapore with the number of units for each type. |
| Pros and Cons of Buying SBF Flats | – Pros: Construction warranty, cheaper than resale flats, eligible for CPF housing grants. – Cons: Limited choice of flats located in mature estates. |
| Factors Impacting SBF Flat Prices | – Location, age, and condition of the flat impact its price. – Comparison with nearby resale properties should be done. – Racial profiles and priority schemes also affect pricing. |
| Key Considerations for First-Time Buyers | – Understand the selection process and make choices based on preferences. – Consider floor units and choose the right size. – Fulfill eligibility criteria and submit a complete application. |
| Tips for Successful SBF Application | – Understand project allocation and ballot chances. – Explore mature towns and desirable units. – Follow the application process on the HDB portal. – Consider impact of the resale market on SBF flats. |
Understanding the Sale of Balance (SBF) Flat Exercise
What is Sale of Balance Flat?
Sale of Balance (SBF) Flat is a scheme under the Housing and Development Board (HDB) that allows eligible buyers to purchase unsold flats from previous sales exercises.
These flats may include surplus flats that were not booked during the previous sales launch or returned flats from buyers who were not eligible.
SBF flats are typically located in non-mature estates and are offered in 2-room Flexi and 3-room flats.
When is the Sale of Balance Flat?
In Singapore, two SBF exercises are held each year, in May and November.
These exercises usually run for about two weeks and are open to all eligible buyers.
Interested buyers can apply during these periods, and the flats are then allotted through a ballot system.
How many flats are usually available during the SBF
exercise?
The number of flats available during an SBF exercise varies depending on demand and supply.
Generally, the number of flats available during a sales exercise can range from a few hundred to a few thousand across various estates in Singapore.
Eligibility Criteria for Applying for a Sale of Balance (SBF) Flat
What are the eligibility criteria for SBF
application?
To apply for an SBF flat, you must be a Singapore Citizen (SC) or a Permanent Resident (PR).
You should also meet the eligibility conditions related to the Ethnic Integration Policy (EIP) and the Singapore Permanent Residents (SPR) quota.
In addition, you must not own any other property in Singapore or overseas and must fulfill other eligibility criteria set by HDB.
What are the income ceiling requirements?
The income ceiling for SBF flats is currently set at S$7,000/month for families and S$14,000/month for extended families.
This ceiling is based on gross monthly income and includes all sources of income, including bonuses and allowances.
Can permanent residents apply for SBF flats?
Yes, Permanent Residents (PRs) are eligible to apply for SBF flats.
However, PRs can only apply for flats in non-mature estates and are subject to the SPR quota set by HDB.
Step-by-Step Guide to Buying an HDB SBF Flat
How do I check my eligibility for SBF flats?
You can check your eligibility for SBF flats using HDB’s e-Service on their official website.
Simply enter your personal details, and you can see if you are eligible to apply for an SBF flat.
How do I apply for SBF flats?
To apply for an SBF flat, you must submit an application during the sales exercise period.
You can do this online through the HDB website or in person at the HDB Hub.
After submitting your application, you will be given a queue number, and the balloting process will take place afterward.
Successful applicants will then be invited to book their flats and pay the option fees.
What are the payment procedures?
After booking your SBF flat, you will need to pay a 5% option fee in cash or using your CPF Ordinary Account (OA) monies.
You can also apply for an HDB or bank loan to finance your flat.
The remaining flat balance will be paid through your CPF OA, cash, or other approved modes of payment.
After the payment procedures, you will be issued a key collection date to collect your keys and move into your new flat.
Exploring the Benefits of Sale of Balance (SBF) Flats
What are the benefits of SBF flats?
SBF flats offer several benefits for buyers, including shorter waiting times compared to BTO flats.
SBF flats are also offered at lower prices than resale flats, making them an attractive option for those on a budget.
In addition, SBF flats are located in non-mature estates, which may offer a more peaceful, family-friendly environment than mature estates.
What is the difference between SBF and BTO flats?
The main difference between SBF and BTO flats is that SBF flats are unsold flats from previous sales exercises, while BTO flats are newly built flats.
BTO flats are usually located in both mature and non-mature estates and are offered at a higher price compared to SBF flats.
However, BTO flats offer more flexibility in terms of design and customization compared to SBF flats.
Can I opt for a shorter lease?
Yes, SBF flats are also available under the 2-room Flexi Scheme, which provides shorter lease options of 15 to 45 years.
This scheme is meant for elderly buyers or those who do not require a flat with a longer lease.
Comparing Sale of Balance (SBF) Flats and Build-to-Order (BTO) Flats
What is the difference between SBF and BTO flats?
The main difference between SBF and BTO flats is that SBF flats are unsold flats from previous sales exercises, while BTO flats are newly built flats.
In terms of price, SBF flats are generally cheaper than BTO flats.
However, BTO flats offer more options for customization and design compared to SBF flats.
Which option is better for me?
Whether you should opt for an SBF or BTO flat depends on your individual circumstances and preferences.
SBF flats offer shorter waiting times and are usually located in non-mature estates.
BTO flats offer more options for design and customization but are usually more expensive than SBF flats.
Can I still apply for BTO flats if I applied for SBF flats?
Yes, you can still apply for BTO flats even if you have previously applied for an SBF flat.
The application process for BTO flats is separate from that of SBF flats and is open to all eligible buyers.
Factors to Consider When Choosing Between SBF and BTO Flats
What factors should I consider when choosing between SBF
and BTO flats?
When choosing between SBF and BTO flats, factors include price, location, waiting time, and customization options.
SBF flats offer shorter waiting times and are usually cheaper than BTO flats but offer fewer customization options.
BTO flats offer more flexibility in terms of design but are usually more expensive and have long waiting times.
Location is also important, as both SBF and BTO flats are located in various estates across Singapore.
How do I check the flat supply for each exercise?
You can check the flat supply for each sales exercise through the HDB website or mobile app.
These platforms will provide you with a list of available flats across various estates in Singapore and the number of available units for each flat type.
What is the range of flats available for SBF and BTO
exercises?
The range of flats available for SBF and BTO exercises varies depending on demand and supply.
SBF flats are generally offered in non-mature estates and include 2-room Flexi and 3-room flats.
BTO flats are offered in both mature and non-mature estates, including 2-room Flexi, 3-room, 4-room, 5-room, and 3Gen flats.
Availability and Supply of Sale of Balance (SBF) Flats in 2023
If you are interested in purchasing an HDB flat, you probably know about the different types of flats that are available.
One of them is the Sale of Balance (SBF) Flats.
These flats are typically offered after HDB has completed the Sale of Balance Flats (SBF) property sales event.
Understanding the open booking and appointment basis
For the upcoming SBF launch in May 2023, there will be an open booking of flats.
This means that any eligible person can book a flat based on available SBF units.
Appointments can also be made for viewing selected flats.
Exploring the projects and locations
There are various projects and locations available for SBF flats.
For example 2023, SBF flats will be available in Bedok and Bukit Panjang.
Assessing the demand and supply for SBF flats in 2023
The demand and supply for SBF flats in 2023 vary based on location and type of flat.
However, the SBF flat prices are generally more expensive than Build-to-Order (BTO) flats.
Understanding the Application Process for Sale of Balance (SBF) Flats
The eligibility criteria for purchasing an SBF flat are similar to other HDB flats.
However, SBF flats have different priority schemes for different groups of people.
Key eligibility criteria for SBF flat application
The eligibility criteria for SBF flat application include being a Singaporean citizen and having a monthly household income of up to $14,000.
This income assessment ensures buyers are eligible for an HDB housing loan.
Income Assessment and housing loan eligibility
If you fulfill the income criteria and have not previously purchased a HDB flat, you can apply for an HDB loan and have the loan amount assessed.
Second-timer applicants can also apply if they have fulfilled the Minimum Occupation Period (MOP) and have no outstanding loan from HDB.
A step-by-step guide to applying for the Sale of Balance
(SBF) flats
You must submit an online application to apply for an SBF flat.
You can also apply in person at one of the HDB branches.
Once you have applied, you will be shown what is available and can choose a flat based on your preferences.
You will then be required to sign the Agreement for Lease and pay the option fee to secure your flat.
Exploring the Prices of Sale of Balance (SBF) Flats in 2023
The prices of SBF flats differ based on location.
However, they are generally more expensive than BTO flats.
Flat buyers can compare the prices of SBF flats with nearby resale properties before deciding on the best option.
Assessing the flat prices and comparing with nearby resale
properties
When comparing prices to nearby resale properties, it is important to take note of the racial profiles and priority schemes for SBF flats.
Chinese buyers typically have better chances of securing a flat, as the priority scheme allows them to be selected first.
Understanding the racial profiles and priority schemes for
SBF flats
The racial profile and priority scheme of SBF flats are considered when allocating the flats.
For example, the Selective En Bloc Redevelopment Scheme (SERS) program gives priority to households living in blocks selected for SERS for the purchase of an SBF flat in the vicinity.
Ethnic integration is also maintained in the sale of flats through the Ethnic Integration Policy (EIP).
This policy aims to ensure a balanced mix of the different ethnic groups living in HDB towns.
Key factors affecting the purchase price of an SBF flat
The purchase price of an SBF flat is based on its location, age, and condition.
The older the flat, the lower its value.
Some SBF flats might also require renovation, which will incur additional costs.
Assessing the Pros and Cons of Buying a Sale of Balance (SBF) Flat
Before deciding to purchase an SBF flat, it is important to understand its advantages and disadvantages.
Advantages of purchasing an SBF flat over resale HDB flats
Purchasing an SBF flat could be more desirable than purchasing a resale HDB flat because it has a construction warranty and is cheaper than a resale HDB flat.
Moreover, you can still enjoy CPF housing grants for first-timer applicants and second-timer applicants who have fulfilled certain criteria.
Disadvantages of having limited choices for SBF flats
One of the disadvantages of purchasing an SBF flat is the limited choice of flats available.
SBF flats are normally located in mature estates and are limited in supply.
Key factors that impact the resale market of SBF flats
The current SBF supply and resale demand in the market directly affects the resale market of SBF flats.
The resale market of SBF flats is affected by their supply and demand balance, development age, location, and condition.
Key Considerations for First-Time Buyers of Sale of Balance (SBF) Flats
First-time flat buyers should consider the following considerations when purchasing an SBF flat.
Understanding the SBF flats selection process and how to
make a choice
To select an SBF flat, you must understand the selection process and how to make a choice.
You can only select flats listed in the flat application within your specified budget.
Exploring the floor units and choosing the right flat size for
your needs
When exploring floor units, you should look for a flat size that fits your needs.
Usually, smaller flats are more affordable than larger ones.
However, you can opt for a bigger flat if you have a big family or prefer a bigger living space.
Key tips for successful application for SBF flats as first-
timer applicants
To successfully apply for an SBF flat as a first-time applicant, you must fulfill the eligibility criteria and submit a complete application.
This includes providing the necessary financial documents and fulfilling the income assessment criteria.
Tips for a Successful Application for Sale of Balance (SBF) Flats
Understanding SBF Project Allocation and Ballot Chances
One of the most important steps in the SBF process is understanding the project allocation and ballot chances.
Each SBF launch aims to distribute flats in a balanced and fair way based on the needs of Singaporean households.
Individuals can check their eligibility for an SBF flat on the HDB website and should ensure they meet the requirements before applying for a flat.
Additionally, knowing the application period for each SBF launch is crucial to maximizing ballot chances.
Applicants can select up to 3 flat units and prioritize based on their preference for a particular location or unit size.
The more options selected, the higher their chances of being selected in the ballot queue.
Exploring Mature Towns and Desirable Units in SBF
Launches
Choosing the right location and unit size is key to a successful SBF application.
Mature towns such as Toa Payoh and Choa Chu Kang tend to have higher demand, making securing a flat in these locations more challenging.
However, a wide variety of unit sizes and types are available in these areas, from 2-room Flexi flats to 5-room flats for sale.
It is advisable to explore all the options before making a final decision.
How to Apply for the Sale of Balance Flats on the HDB
Portal?
Applying for an SBF flat can be done through the HDB Flat Portal.
Before an application can be submitted, the individual should ensure they have a sufficient mortgage and are eligible for an SBF flat.
Once the official lease agreement has been signed, a booking fee of $10 must be paid.
The individual will receive an appointment letter to collect the keys on the appointment day.
A non-refundable admin fee applies, which may range from $10 to $40, depending on the size of your choice.
Exploring the Resale Market for HDB Flats and its Impact on SBF Flats
Residential Property Purchase in the Public Housing Market
Resellers play a significant role in the HDB resale market as they offer a diverse range of flat options, including balance leases and 99-year leases.
However, the presence of resale flats can impact the SBF launch as many previous buyers may choose to purchase these units instead of applying for a new flat.
This can lead to a smaller pool of applicants and increased competition for desirable units in SBF launches.
Understanding the Role of HDB Loan in Financing an SBF
Flat Purchase
For individuals who require financing, an HDB loan can be an attractive option.
However, it is important to understand the role of the loan and how it affects the overall purchase process.
With an HDB loan, the individual will need to pay a cash downpayment and Cash Over Valuation (COV), which is the amount that is paid in excess of the flat’s valuation.
It is important to be aware of these costs before making a decision to apply for an SBF flat.
Impact of Previous Buyer’s Resale Flats on SBF Flat
Purchases
Previous buyers can also impact the SBF launch by choosing to purchase resale flats instead of applying for a new flat.
This can lead to a reduction in the number of applicants for a particular SBF launch and may increase competition for balloted units.
However, it is important to note that the availability of resale flats does not necessarily mean that there will be fewer applicants for an SBF launch.
Understanding the Role of HDB Loan in Financing a Sale of Balance (SBF) Flat
Expert Advice on Selecting HDB Loan Mortgage Options for
SBF Flats
Choosing the right mortgage option ensures the financing process runs smoothly.
Individuals can seek expert advice from mortgage professionals to assist them in selecting the right option that suits their financial needs.
It is important to consider factors such as interest rates and repayment terms, as these can impact the overall cost of the flat purchase.
How to Apply for Replacement Flats with HDB Loan
Financing?
Replacement flats are a popular option for second-timer families who are looking to upgrade their living arrangements.
Individuals can apply for replacement flats through the HDB website and secure HDB loan financing.
It is important to note that only eligible individuals who have previously purchased an HDB flat can apply for a replacement flat.
Wider Range of Flat Options and Flexi Flat$ for SBF Flat
Purchases
SBF launches offer a wider range of flat options, including Flexi Flat$5003-room, Bukit Batok2-room Flexi, Chu Kang2-room Flexi, and more.
These flats offer a lot of flexibility in design and size, making them an attractive option for families with different needs.
With a variety of options available, it is important to take the time to explore all the possibilities before making a final decision.
Future Outlook and Trends in the Sale of Balance (SBF) Flat Market
SBF Application Rates and Trends in SBF Flat Purchases
The SBF flat market is continually evolving as new trends emerge.
Recent statistics indicate that application rates for SBF flats have remained high, showing a sustained interest in this type of property purchase.
Additionally, the trend towards balance leases and 99-year leases has continued, highlighting the importance of having various options available to buyers.
99-year Leasehold vs. Balance Leasehold Flats in SBF
Launches
One of the most popular options available to buyers is the 99-year leasehold flats.
These flats offer a long-term investment opportunity and can be passed down to future generations.
However, balance leasehold flats offer attractive benefits, such as lower costs and a shorter lease term.
It is important to consider both options before making a final decision.
Special Considerations for First-Time and Senior SBF Flat
Applicants
First-time and senior SBF flat applicants have unique needs and requirements that should be considered.
First-time applicants may require additional information and support before making a purchase decision, while senior applicants may require units that are more accessible.
It is important to consider these factors to ensure all applicants have an equal opportunity to secure a desirable flat.
Overall, the sale of balance flats offers an attractive option for individuals and families looking for a flat in a desirable location at a lower cost.
With a wide variety of unit sizes and locations available, it is important to take the time to explore all the options before making a final decision.
Additionally, understanding the financing process and upcoming trends in the market can help individuals make an informed decision about their SBF flat purchase.
Conclusion
In conclusion, using an HDB loan calculator is crucial for making informed decisions and managing your finances effectively when purchasing an HDB property.
By understanding how the calculator works and considering important factors such as monthly repayment, total interest payable, loan eligibility, and loan details, you can determine the loan amount that suits your financial capacity.
It is also essential to compare different loan packages from banks and consider factors like interest rates, lock-in periods, and fees.
If applicable, remember to explore other loan options like bridging loans and green home loans.
By utilizing an HDB loan calculator and considering all these aspects, you can confidently navigate the loan process.
For more detailed information and tips on HDB loan calculators, loan eligibility, interest rates, and other related topics, check out our other blog articles.
Frequently Asked Questions
What is a Sale of Balance Flat?
A Sale of Balance Flat (SBF) is a scheme by the Housing and Development Board (HDB) where unsold flats from various projects are offered for sale.
These flats are usually located in mature and non-mature estates and are either 99-year lease or balance lease flats.
How can I apply for a Sale of Balance Flat?
To apply for a Sale of Balance Flat, you first need to check the SBF launch locations and the exact locations where the flats will be built.
You can then submit your application for flats from projects that are open for booking.
You will need to have an HDB Loan Eligibility (HLE) letter and agree to the lease within nine months of the flat application date.
Are there eligibility schemes for Sale of Balance Flats?
Yes, there are quota-based priority schemes for Sale of Balance Flats.
These schemes are designed to give first-timer single applicants and families with children priority in the allocation of flats.
Keen buyers can also be included in these eligibility schemes.
What are the income documents required for a Sale of Balance Flat?
A: You will need to provide documents to prove your income, such as your computerized pay slips, income tax notice of assessment, and a CPF statement of account for the last 12 months.
Can I choose my preferred location for a Sale of Balance Flat?
You can indicate your preferred location when you apply for a Sale of Balance Flat, but you won’t be able to choose the actual locations of the individual flats.
You will be shown what’s available and can then decide if you would like to book a flat.
How much is the starting price for Sale of Balance Flats?
The starting price for Sale of Balance Flats varies depending on the location, size, and type of flat.
This information is usually provided during the SBF launches and is based on market rates and conditions.
What is the difference between a BTO and SBF flat?
A Build-To-Order (BTO) flat is a brand new flat that is constructed from scratch, while an SBF flat is an unsold flat from a previous project that is being offered for sale.
BTO flats usually have a waiting time of around 3-4 years, while SBF flats are generally ready for occupation within 2-3 years of the launch.
Can I apply for an HDB loan for a Sale of Balance Flat?
Yes, you can apply for an HDB loan for a Sale of Balance Flat.
However, you will need to meet the HDB Loan Eligibility criteria and go through a loan assessment before you can be approved for the loan.
How can I check the results of my Sale of Balance Flat application?
The HDB provides information on the units available for Sale of Balance Flats on their official website.
You can check the website to see if your application has been successful and when you might be able to get the keys to your flat.
What happens if I don't agree to the lease within nine months?
If you fail to agree to the lease within nine months of the flat application date, you may lose your opportunity to get a flat under the Sale of Balance Flat scheme.
HDB reserves the right to forfeit 5% of the deposit submitted and reject any extension request.
