HDB Option to Purchase and resale rules

The seller grants HDB’s prescribed OTP form after the price is agreed. During the option period, the seller cannot offer the flat to another buyer. The buyer can exercise the OTP or let it lapse.

• Seller: register a valid Intent to Sell before granting the OTP.
• Buyer: hold a valid HFE letter before receiving the OTP.
• Buyer: submit the Request for Value by the next working day when CPF or a housing loan is needed.
• Both: use the prescribed HDB OTP without changing its terms.

1. 1

   Before the OTP

   Buyer holds a valid HFE letter

   The seller must have a valid Intent to Sell, and the buyer must have a valid HFE letter before the seller grants the OTP.

2. 2

   Day 0

   Seller grants the OTP

   The buyer pays an agreed option fee of $1 to $1,000. The seller cannot grant another OTP while this one remains valid.

3. 3

   Up to 21 days

   Buyer decides and arranges financing

   The option period is 21 calendar days. The Request for Value must be submitted by the next working day after the OTP date if the buyer needs CPF or a housing loan.

4. 4

   By 4pm on day 21

   Buyer exercises or lets it lapse

   To proceed, the buyer signs and pays the exercise fee. Option and exercise fees together cannot exceed $5,000.

5. 5

   After exercise

   Both sides submit separately

   Buyer and seller submit their portions of the resale application within 7 calendar days of each other. HDB begins processing only after both portions are received.

6. 6

   After HDB acceptance

   Completion is scheduled

   HDB’s completion date is generally about 8 weeks after it accepts the resale application. It can differ by case.

For the broader journey, read the HDB resale process guide.

The MOP is the period owners must physically occupy the flat before selling it on the open market or renting out the whole flat. For a standard resale flat it is generally five years. Prime and Plus flats bought from HDB have a 10-year MOP, and individual circumstances can differ.

• Check your actual MOP status in HDB’s services before committing to sell.
• Periods when the whole flat was rented out do not count towards MOP.
• Bedroom rental may be allowed while eligible owners continue living in the flat.
• Do not assume an exception. HDB decides requests based on the circumstances.

COV is the part of the agreed price above HDB’s valuation. If the price is $650,000 and the valuation is $620,000, the $30,000 difference is paid in cash. Housing loans and CPF usage are based on the lower of the price and valuation.

Check recent HDB resale prices and use SOLO’s HDB valuation tool before negotiating.

Your HFE letter provides the loan outcome for your household. From 24 August 2026, the published monthly income ceilings for an HDB housing loan are $16,000 for families and $8,000 for singles. Do not infer an extended-family ceiling from those changes. Use the live HFE assessment for that household type.

Maximum loan-to-value

Up to 75%

Maximum tenure

25 years

Mortgage Servicing Ratio

Up to 30% of gross monthly income

Eligibility also depends on citizenship, private-property interests, previous HDB loans and remaining lease. The HFE outcome is authoritative.

HDB OTP questions

How long is an HDB Option to Purchase valid?

It is valid for 21 calendar days. The option expires at 4pm on the twenty-first day after the OTP date.

How much are the HDB option and exercise fees?

The option fee is $1 to $1,000. The option fee and exercise fee together cannot exceed $5,000.

What happens if the buyer does not exercise the OTP?

The option lapses and the seller may keep the option fee. The seller can then grant a new OTP.

What is COV?

Cash Over Valuation is the amount by which the agreed price exceeds HDB’s valuation. The buyer pays that difference in cash.

What is the usual HDB MOP?

For a standard resale flat, the Minimum Occupation Period is generally five years. The owner’s actual eligibility and MOP status should be checked with HDB.