Singapore HDB Loan Eligibility Letter (HLE) Guide (2023)

You've been looking for a resale HDB property for months and you've finally found the perfect one! To make sure you get the flooring you want, you've asked the seller for an option to purchase (OTP). However, it found that sellers cannot grant OTP unless they have a valid HDB Loan Eligibility Letter (HLE) from HDB.

A HLE letter is a prerequisite to applying for HDB flooring, whether new or on the resale market. Fortunately, it's easy to get one. Below is a simple guide to obtaining an HLE letter, what the letter is for, and the eligibility criteria for obtaining a letter.

What is HDB loan eligibility?

HDB Loan Eligibility (HLE) is a set of criteria set by the Housing and Development Board (HDB) to properly assess each applicant for HDBHDB loan. This set of standards allows HDB flats to maintain consistency in unit values. Therefore, eligible applicants can purchase government-subsidized affordable housing.

For example, one of the eligibility criteria for HDB loans is a household income cap of S$14,000 (or S$21,000 for larger families). This prevents high earners from jacking up property values. It also means that HDB will not offer flats to people whose income is too low and who are at high risk of defaulting on their loans.

HLE's guidelines will help HDB to only offer HDB loans to desirable buyers. By doing so, they can limit purchases, control the pace of real estate construction, and keep real estate prices constant.

In addition to HDB's home loan eligibility guidelines, you must pass credit screening criteria. If you meet both of these criteria, you can apply for a HDB Loan Eligibility Letter (HLE).

Take a look at this graphic for a quick reference to credit evaluation criteria:

Singapore HDB Loan Eligibility Letter (HLE) Guide (1)

How does the HDB loan eligibility letter work and why is it necessary?

The HDB Loan Eligibility Letter (HLE) certifies that you are approved for a home loan from HDB. This means that based on the documents you submit, you are eligible for a HDB loan. It is also a requirement when you want to apply for a concessionary loan from HDB.

Your HLE letter will contain the following details:

  • The maximum loan amount you can borrow
  • monthly fee
  • repayment period
  • flat type
  • floor rental

So how does it work?

First, you need to verify your eligibility. You can find a full list of eligibility criteria atHDB website.If you are unsure, you can also check your eligibility atHDB | Eligibility Verificationto see if you are eligible.

Once complete, you can request an HLE letter. All you have to do is upload your file will then be issued an HDB HLE number.

use:Provide correct information and complete documentation. If incorrect information or incomplete documentation is provided, your HLE application will not be processed.

Why do I need an HLE letter?

As mentioned above, those wishing to apply for a concessionary housing loan from HDB will need an HLE letter. You will also need an HLE letter for:

1. Purchase a new BTO apartment

Before your first appointment, you will need a letter from HLE. The HLE letter allows you to apply for a HDB Concessionary Loan and book a flat. If your HLE Letter application is rejected, you may not be able to apply for an HDB concessional loan.

2. Resale buyers

When purchasing a resale condo, you will also need to apply for and obtain an HLE letter. Dealers don't have to buy. One of the reasons for applying is that HDB assesses the property of the reseller and approves the proposed resale amount.

As mentioned above, HDB monitors the sale of every HDB property. By doing this, they can adjust the LTV limit, so the properties are affordable for the average Singaporean worker. In addition, the Housing and Development Board must approve the legalization of the sale. If resellers do not notify the flat, they will be penalized and banned from owning the flat.

3. Transfer of ownership

For example, your parents want to transfer title to their HDB property to you. You still need an HLE letter. because? Notify HDB of activities and prevent property value inflation. Additionally, it allows HDB to assess whether the person taking over the property meets the eligibility requirements.

How much HDB loan can I apply for?

The maximum HDB loan amount you can borrow depends on several factors such as:

  • your credit assessment
  • LTV limit
  • Remaining tenancy for HDB flats
  • and other HDB policies

For example, those buying an apartment whose remaining rent can cover the youngest buyer under 95 can borrow up to 90% of the apartment's purchase price or value (LTV).

However, for those buying apartments with remaining leases, the youngest buyer cannot reach the age of 95, and the maximum HDB home loan they can borrow will be prorated at 90% LTV.

use:The loan-to-value (LTV) limit is the maximum loan amount you can borrow on a property. It is expressed as a percentage of the total property value.

HLE letter validity period

The HDB Loan Eligibility Letter (HLE) is valid for six months from the date of issue. No reassessment is required during this time. However, please make sure that your financial or family situation has not changed.

You will need to apply for a new HLE letter once your HLE expires. You can apply for a new one a week before your current HLE letter is due.

In some cases, HDB will use this letter to ask why your loan application was delayed. Repeatedly delaying your HDB home loan application with HLE letters may raise suspicions and lead to rejection when you apply for a new letter.

What happens when my HLE expires?

If your HLE Letter has expired or is about to expire, but you still cannot find the home you want or cannot make an appointment, you can reapply for a new one, preferably a week before the expiration date, and if you still need a valid HLE charter. This can be done by calling and making an appointment with a real estate officer from HDB.

HLE review

HDB may review your letters during your home loan application. Here are some reasons:

  • If there is any incorrect information in the Borrower profile. Or whether HDB has reason to question the data presented.
  • Changes in your household income and other events may affect your eligibility for a HDB loan.
  • There is a change in the core of your family.
  • HDB's policy has changed which will make you ineligible to buy an apartment and/or apply for a home loan from HDB.

Qualifications and Requirements

Country of CitizenshipAt least one buyer is a Singapore citizen
hometown– Have not taken 2 or more home loans from HDB before

– You got 1 HDB loan and the last property you owned was not a private residential property (local or foreign), for example:

  • HUDC level
  • Items acquired through donations.
  • Assets inherited as testamentary beneficiaries or under intestate succession laws.
  • Property owned/acquired/disposed of by the nominee
income cap– Average gross monthly household income not exceeding:

Family $14,000*

Large family $21,000*

Under the Single Singapore Citizenship Scheme (SSC), singles can get S$7,000* for the purchase of a 5-bedroom or smaller resale flat or a new 2-bedroom flat in an immature estate

– If the applicant or occupant has been unemployed for less than 3 months, their average earnings will be calculated based on the number of months they actually worked.

Country of CitizenshipAt least one buyer is a Singapore citizen
Ownership/Ownership Interest– Have not taken out two or more home loans from HDB before
income capDo not exceed the family income limit

Family S$14,000

Large family 21,000 new yuan

Under the Singapore Single Citizenship Scheme (SSC), singles pay S$7,000 for a 5-bedroom or smaller resale flat or a new 2-bedroom flat in an immature estate

Ownership/Ownership Interest You must not own or dispose of any private residential property in the 30 months preceding the date of application for the HDB Loan Eligibility Letter (HLE).

Do not own more than one market/street vendor or commercial/industrial property

What documents are required to apply for an HLE letter?

To obtain an HLE letter, you must provide the following income and supporting documents. you can send themhere.

Below is a list of the supporting documents you will need. reviewHDB websiteIf you want the full income guide.

Employees with provident fund contributions

  • three month pay slip
  • CPF contribution records for the past 15 months

Employees without CPF contributions

  • Payslips for more than 6 months
  • credit bureau report
  • Bank statement/passbook from last 6 months or more

self employed

  • Auditor’s latest IRAS assessment notice or certified annual statement of accounts
  • credit bureau report
  • Bank statement/passbook from last 6 months or more

commission or part-time worker

  • Commission or salary statement over 6 months
  • CPF contribution records for the past 15 months
  • credit bureau report
  • Bank statement/passbook from last 6 months or more

Temporary workers

  • Latest IRAS assessment notice older than 6 months OR recent letter from employer evidencing job designation, start date and commission/salary
  • CPF contribution records for the past 15 months
  • credit bureau report
  • Bank statement/passbook from last 6 months or more


  • Proof of last month's income from your previous employer showing your gross monthly income and last day of service
  • CPF contribution records for the past 15 months

How long should I wait to receive the HLE letter?

HDB will process your HLE letter request within 14 days of receipt of complete documentation. That being said, be sure to provide the correct information and submit all documents to avoid delays or rejections.

To check the status of your application, you can log inMy HDB page.Go to My Apartment > Application Status > HLE.

in conclusion

Main points:

  • Whether you are buying a resale or new building, an HLE letter is required when applying for an HDB building.
  • Request and obtain an HLE letter before signing the purchase option. This letter certifies that you are approved for a housing loan from HDB and that you meet the eligibility requirements.
  • HLE is a set of criteria set by the Housing and Development Board (HDB) to properly assess each candidate for a HDB loan.

Subsidized public housing provided by the Housing and Development Board has made it possible for ordinary workers in Singapore to buy their dream homes. However, to apply for an HDB loan, you need to apply for and obtain an HLE letter.Click here to read more about the HLE letter and how to apply.

However, if for some reason you still need extra money, such as a down payment, you may consider the services of a financial institution. Use a loan comparison tool like Instant Loan to find the best loan term, lowest interest rate, and most suitable terms and conditions. Instant loans will help you make smart financial decisions.


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