TL;DR — The Oct 2025 BTO Application Flow

1. Get your HFE Letter on the HDB Flat Portal (free). This confirms your eligibility to buy, the grants you qualify for, and loan estimates (HDB/Bank). You must have a valid HFE before applying in a sales exercise.

    

2. Apply during the Oct 2025 BTO window on the HDB Flat Portal and pay the $10 application fee (non-refundable)

    

3. Balloting: HDB conducts a computer ballot with priority schemes (e.g., Parenthood, Married Child). If successful, you’ll receive a queue number

    

4. Book your flat at HDB Hub and pay the Option Fee by NETS: $500 (2-room Flexi) / $1,000 (3-room) / $2,000 (4-room & bigger) offset from your downpayment later.

    

5. Sign the Agreement for Lease, settle stamp duty/legal fees, and confirm financing and grants.

    

Step 1: Get Your HFE Letter (What it is, why it matters, what you’ll need)

What is HFE?
The HDB Flat Eligibility (HFE) Letter is a one-stop assessment of your flat eligibility, CPF housing grant eligibility, and loan eligibility (HDB loan estimate and bank loan options). It’s mandatory before you can apply in the BTO sales exercise or obtain an Option to Purchase.

Where and how to apply
Log in to the HDB Flat Portal → My Flat Dashboard → Apply for HFE. The official guide breaks the process into (i) a preliminary eligibility check and (ii) the formal HFE application (apply within the stated timeline)

(Link to HDB webpage here)

Documents & data typically required (HDB retrieves part of this via MyInfo, but you may be asked to upload PDFs if data isn’t available/updated):

• Identity details & household composition (applicants/occupiers)

   

• Income documentation (employees: recent payslips/CPF contributions; self-employed/variable income: NOA, bank statements; retirees: proof of pension/CPF payouts)

   

• Property/ownership declarations and liabilities (housing, study, car loans, etc.)

   

• Consent for checks with CPF Board and IRAS (for grants and loan assessment)
  HDB’s HFE income guidelines spell out what counts as income and typical document formats.

   

Cost: Applying for an HFE Letter is free. (You only pay later for the BTO application, stamp duties, legal fees, etc.)

How long it takes: HDB processes your HFE after all documents are in. Typically within 21 working days (as per existing clients) 

*(Timelines can vary around major launches; apply early to avoid missing the sales window.)

Step 2: Apply for the Oct 2025 BTO

When HDB opens the October 2025 BTO Sales Exercise, submit your flat choices via the HDB Flat Portal during the application period. You must already have a valid HFE. The application fee is $10 (inclusive of GST) and non-refundable.

Tip: The official press brief for Oct 2025 summarises project supply, locations and typical eligibility notes. Refer to the announcement to shortlist towns/flat types before the window opens

Step 3: Understand Balloting & Priority Schemes

If applications exceed supply (common), HDB runs a computerised ballot. Your queue position is influenced by your applicant category and whether you qualify under priority schemes (e.g., Parenthood Priority Scheme, Married Child Priority Scheme). First-timer families generally enjoy higher priority.

Practical strategy: If you qualify, apply under eligible priority schemes and list a wider spread of projects/flat types to improve odds. (External guides summarise tactics, but always rely on HDB rules as the source of truth.)

Step 4: Booking Your Flat (If Your Queue Number Is Called)

If your queue number is within flat supply, HDB invites you to book a flat. On booking day you’ll:

• Present IDs & updated income documents
• Confirm your chosen unit (stack, floor, orientation)
• Pay the Option Fee by NETS: $500 (2-Room Flexi) / $1,000 (3-Room) / $2,000 (4-Room & bigger). This offsets your downpayment at the Agreement for Lease stage.

Step 5: Financing: HDB Loan vs Bank Loan (How much can you borrow?)

Core rules that cap your loan

• MSR (Mortgage Servicing Ratio) caps the monthly mortgage on HDB flats to 30% of gross monthly income (applies to both HDB loans and bank loans for HDB flats).
• TDSR (Total Debt Servicing Ratio) caps total monthly debt (including your home loan and other loans) to 55% of gross monthly income for bank loans; HDB also highlights these ratios when you work out budgets.

   

HDB loan snapshot (as of 2025)

• LTV (Loan-to-Value) limit: Up to 75% of the purchase price for new HDB flats.
• Typical interest: HDB loan interest is pegged to CPF OA (currently 2.5% p.a.) + 0.1% (i.e., 2.6% p.a.), reviewed periodically.
• Tenure: Up to 25 years (subject to remaining lease).
  (See HDB’s loan page and CPF InfoHub comparison.)

   

Bank loan snapshot (for HDB flats)

• LTV: Up to 75% (subject to bank credit assessment).
• Cash downpayment: At least 5% cash (the rest of downpayment can be CPF/cash).
• Tenure: Up to 30 years for HDB flats (MAS cap).
• Rates: Market-priced packages (e.g., SORA-pegged fixed/float); may be lower or higher than HDB over time.

When might a bank loan help you “borrow more”?
Because bank tenures can go to 30 years (vs HDB’s 25), your monthly instalment may be lower, which can fit MSR/TDSR better and increase the maximum loan computed by the bank, even though the LTV cap is the same 75%. 

If your HFE shows a tight HDB loan estimate but your affordability improves with a 30-year structure, seek an in-principle approval (AIP/IPA) from banks alongside your HFE. (HDB’s budget calculator on the Flat Portal also compares estimates across HDB and participating FIs.)

Step 6: Grants You Can Use for BTO (2025)

For new flats (BTO), the headline grant is the Enhanced CPF Housing Grant (EHG), income-tiered based on your average household income:

• Families (couples): Up to $120,000 (from 20 Aug 2024 revisions)
• Singles: Up to $40,000 (eligibility depends on whether you buy alone or with other singles)

   

(Note: Proximity Housing Grant applies to resale, not BTO.) Government resources provide quick explainers and examples; check them against your HFE, which states exact grant eligibility. Check out the EHG here -> Central Provident Fund

Step 7: Agreement for Lease, Downpayment & Legal Bits

After booking, you’ll sign the Agreement for Lease. Here you:

• Finalise financing (HDB loan or submit bank’s Letter of Offer)
• Use grants/CPF toward downpayment
• Pay Buyer’s Stamp Duty and legal/conveyancing fees
• Select staggered downpayment if eligible
  HDB’s page shows typical fee breakdowns and timing

   

Fees & Cost Checklist (at a glance)

• HFE application: $0 (online)
• BTO application: $10 (non-refundable; per application)
• Option Fee (at booking): $500 / $1,000 / $2,000 by NETS (depends on flat type; offsets downpayment)
• Stamp duty & legal fees: Pay at/around Agreement for Lease (varies by price; calculators available on IRAS/HDB sites)

   

What’s Special About the Oct 2025 Launch?

HDB’s October 2025 press information outlines the number of flats and towns for this sales exercise, along with example affordability scenarios tied to EHG tiers—useful for shortlisting projects by budget. Always check the official press note and sales portal for the exact window to submit your application and any location-specific eligibility notes.

Should You Choose an HDB Loan or a Bank Loan?

Choose HDB loan if you want:

• Stable rate (2.6% p.a. historically) and no cash downpayment requirement beyond what CPF doesn’t cover
• Simpler process integrated with HFE; capped tenure of 25 years.

Consider bank loan if you need:

• Longer tenure (up to 30 years) to improve monthly instalment affordability (may increase the maximum loan that fits MSR/TDSR)
• Potentially lower introductory rates (market-dependent)
  But bank loans require at least 5% cash downpayment and are subject to TDSR. Get AIP early so your financing is locked when you book.

Pro Tips to Improve Your Odds (and Peace of Mind)

• Apply early for HFE so there’s buffer to clear document queries before the Oct window opens
• Use priority schemes you’re eligible for (e.g., Parenthood, Married Child)
• Cast a wider net (more project choices, broader flat types) to maximise a successful queue number. (External summaries are helpful but rely on HDB rules for eligibility)
• Budget with the official calculator on the HDB Flat Portal, it estimates both HDB and bank loan amounts side-by-side.

FAQ (Quick Answers)

Q1) Can I apply for BTO without an HFE Letter?
No, you must have a valid HFE before you apply in any sales exercise. Its free!! 

Q2) How much is the BTO application fee?
$10 per application, non-refundable

Q3) What if my HDB loan estimate is too low for the flat I want?
Explore a bank AIP/IPA (longer tenure up to 30 years may improve your loan sizing under MSR/TDSR), but remember the 5% cash downpayment and interest-rate risks

Q4) How much do I pay at booking?
The Option Fee by NETS: $500 (2-room Flexi) / $1,000 (3-room) / $2,000 (4-room & bigger), later offset against downpayment

Q5) What grants can I use for BTO?
The EHG: up to $120,000 (families) and up to $40,000 (singles), subject to income and eligibility. Your HFE will state the exact amount

Q6) What are the key affordability caps?
MSR 30% of income (HDB flats) and TDSR 55% (total debt, mainly for bank loans). These constraints drive the maximum loan you can take