Guide to buying a Resale flat in SG

Before you start reading, make sure you are eligible to buy a resale flat in Singapore. You also have to make sure you are 35 years old (and above) and is not a discharged bankrupt. So, without further adieu, I will not bore you with long introduction and let's just cut to the chase on the steps when buying a resale HDB flat (via the Single Scheme route).

Step # 1: Registering for Intent to Buy (FREE!)

You need to only arm yourself with a knowledge of your past 3 months salary (excluding current month and excluding bonuses - that means your gross monthly salary before deductions, basically what you and your employer agreed when you signed on the contract). You need to fill this one up online. An intent is valid for 1 year.

Choosing the loan (HDB vs Bank Loan)

As I don't want to complicate things and I do not want to fork out that much cash for down payment this year, so I've decided to go with an HDB Loan payable for 25 years. I know that it's a tied down rate of 2.6%.

Reasons for choosing HDB Loan (even though it's already more expensive rate than Bank loan)

It's a fixed rate.
Only need to fork out 10% cash for payouts
It's more forgiving than a Bank loan.
I can pay early without incurring any charges.

With that choice, I have to apply an HLE to proceed my HDB Loan (this can be done while you're looking for your house, but not when you're trying to sign OTP, better to have this on hand).

Do also know your budget (and do know if how much COV you will be willing to spend).

Step #2: Apply for HLE

You need only to have a soft copy version of Contribution History (which you can get from CPF website) and income letter / 3 months payslip from your HR. I chose the income letter ( in PDF format < 5MB).

Income Letter from employer certifying salaries for 3 months preceding the month of application; the letter must contain the:

Company stamp/ letterhead
Certifying officer’s name, signature, and designation

If your income includes allowances, HDB will require +6 months’ pay slip preceding the month of application.

Note: This is only valid for 6 months. There is a processing time of 2 weeks from date of submission.

While in the process of HLE, I took the liberty to browse online for houses that are on sale.

Step # 3: Start looking and do onsite visits

Some tips:

Do walkabout around the (potential) neighborhood that you wanted to live (look for the nearest means of transport, polyclinic, food, and mini marts).
Do check your hdb unit , is it a corner unit or corridor unit (If corridor unit, are you ok with people always passing by your unit, how cooling or hot the weather tends to get, is the unit surrounded by other flats).
Do note what you can tolerate and not tolerate (if you can, you can go above your desired unit and see your upstairs neighbor)
Zero in on the district where you want to stay.
Be observant on the unit that you plan to buy (Look up the ceilings, open/close the windows, find anything that is leaking ).
Know your min and max purchase price
Know the things which you can tolerate (am i willing to get the house that has no mrt but a nearby bus stop?)
Observe the neighbors around
Visit the place during day and night time.
If you want more grants from the government (to help you at least share some burden of buying a house. Note: Some grants are only given on the first purchase), you can find a house near your parents house.
Best to SMS/Whatsapp/Call some of the agent because they don't normally reply on the chat box that were provided in the app/website like 99.co, stackedhomes, srx or propertyguru.

Step #4 : Start Option To Purchase (and Pay Option Fee)

Once you fall in love with the flat that you wanted to stay (for the next 5 years), you can strike a bargain with the current owner of the house. The sellers' agent will be the one to initiate the procedure, and all you need to do, as the buyer (for now) is to sign the papers. You also have to pay a option fee to the seller. (you can do PayNow, write a cheque or pay in Cash, whichever mode of payment you would prefer -- cards not included). I need some paper trail, so I opted to do PayNow. Option fee can be a paid between a range of S$1 - S$1,000.

With that, your next step is to log in HDB portal and do the valuation report.

Step #5 : Valuation Report

You have to pay S$120 for the valuation report. A HDB officer may or may not go to the said premises to check the valuation of the HDB. Also ,the report won't be out until 3 or 4 working days later, so you can just sit back, relax and wait. (This is the teeth chattering part as you won't know whether the place you paid for was under valued, over valued or just right. Luckily, I didn't have to pay any difference).

From what I have heard from the grapevine (or the previous owner of the house), no HDB officer came to the place for inspection.

Pray that the valuation is the same as the selling price (You will have to pay COV if above/below the valuation).

Step #6 : Exercise OTP (after valuation report is out).

The rest of the Option fee needs to be forwarded to the sellers. I chose to pay S$4,000 to complete the option fee. This fee will later be deducted from the total payment that you need to pay HDB. Seller's agent would also go down to meet up with you for you to sign the final page in OTP. You will also need a SPR or SC to help you sign the document as witness. I had to ask the seller's agent as no one on my side was a SPR or SC yet.

Step #7 : Submission of Resale Documents

Both seller and buyer needs to submit their portion of the resale document online. Once everyone is done with their part, you can get the result 1 day after everyone has submitted.

HDB will send an SMS regarding the Registration of Resale application. ( 8 weeks from this SMS date is the completion date of (transfer of ownership of the house). The SMS detailed the completion date of sale and will ask you to acknowledge the documents in 2 weeks time. You also need to pay S$80 upon submission.

Step #8 : Acknowledgement of Resale Documents

You will received a SMS from HDB that the document needs your acknowledgement (2 weeks after registration of resale application). At this point in time, an HDB officer will be assigned to your case. I had wanted to revise the financial plan to keep some CPF money with a bare minimum sum. I wanted to revise but eventually, I just relented with the payment terms and endorsed Resale Documents. Immediately after endorsing, you can pay for the rest of admin fees. Once endorsement is done, do take a look at the officer's contact details found on the Approval Letter, in case you want to ask some questions.

Step #9: Pay fees

Pay for Conveyancing Fees, Title Search and Admin fees.

Step #10: Wait for the approval of Application

After endorsement and payment of fees, you will be waiting for the approval of application and some information on when the keys can be collected (key collection is usually when you go down HDB to formalize completion date or on the agreed date with the seller, it can be earlier or later). While waiting for the completion date, I did the following:

Check my CPF account:

On the approval date, the grant money (if you applied for) will be deposited to your CPF OA Account (Hello Money)
The down payment for the house was automatically deducted from CPF. Stamp duty and legal fees were also deducted. (Goodbye Money)

Bought fire insurance (Always check HDB website which fire insurance to buy, do not buy ahead of time in case they change their providers. You can buy it before completion date, you will have plenty of time)
Apply for cashier order payable to HDB, and the amount specified in the document (for your downpayment).I've picked up the cashier order from DBS (free if booked through ibanking. you can get it the next business day after 12PM). Note: Town Council Reference No = HDB Account No (the cashier order actually has this number) = HDB reference No.
Bought home insurance (1 year) from FWD. S$74.53 ( 5 years Fire Insurance + 1 Year Home Insurance)
Went for a medical appointment for Home Protection Scheme. It took almost 2 hours for the whole thing to complete. You have to fast the day before and can only take plain water.
Opened utilities online. They got back to me asking if I also want to continue gas utilities. Received a message that the timing is at 4PM.Received that they will only do meter reading on the premises on Sept 18. I am not sure how they plan but am definite with security Deposit. S$100
Get the form for GIRO payment for loan repayment. Click Submit and Click PRINT (to PRINT the GIRO form). You have to go to the nearest HDB branch (in your neighborhood to submit the form). You cannot do it in the Main Branch (This is the silliest thing ever!)
Make sure you print Completion Letter & Payment Advice before proceeding to completion date.

Step #11: Attend Completion Date

Things to do:

Go take a queue number from Mobile@ Concierge at the second floor.
Go to 2nd floor, wait until the number is called.
You only need to settle on the signing of the acknowledgement that the cash outlay (cashier order) was taken, pay remainder of property tax and you've collected the keys (if you haven't, the officer will indicate that it will be done privately).

Step #12: Collection of Keys

This would have been on the same day as Completion Date had the owners decided not to extend for about 2 weeks. The seller's agent will handover the keys and take pictures of the house (that there's really nothing in the house, all were sealed. Only the fixtures like lights, wall fan were left).

Step #13 : Door Opening Ceremony

I am the pragmatist in the family, so I do not believe in any of the things that doesn't make any sense at all. For the door opening ceremony, my sister bought a pineapple , which she rolled all over the house (I pity the pineapple just because it will lay waste). My sister also put salt at every corner of the house. After she was done, we had to open the windows of the house. We found out that all the windows in the corridor were hard to open. We don't even know which lock opens which window with all the keys that were thrown at us. I had to message the (previous) owner to teach us how to open the windows (but this was already weeks after my renovation started.)

This should already be the last stage and then it's off to Reno Journey.

You do need to check your recurring costs for the house's upkeep:

Mortgage insurance (HPS): S$226.56 annually for 22 years (Deducted from cpf)
Home Insurance: S$69 annually ( you can opt out after)
Property tax: S$80 annually (or more)
Service & Conservancy charges: S$63 monthly (depends on the flat type)
Utilities charges: S$20 monthly (internet) + (gas, water and electricity)

In retrospect, this is how my journey went back in 2019:

end of Feb - mid of June : Find a house
Mid of Jun - Jul : iron out details on buying the house (payments to be made)
Jul - Aug : Find an ID
Sep - Nov: Renovation process
Dec: Move in Day

Here is a guide from DollarAndSense on how to buy your BTO Flat.

Reverie of Thoughts