Buying an HDB flat in Singapore is a major financial milestone. Whether you are applying for a BTO flat or purchasing a resale unit, the same question often arises:

Do I really need to engage a property agent?

The honest answer is that it is not legally required. However, while you can technically handle everything yourself, the process must be executed correctly. Mistakes in eligibility, financing, valuation or documentation can result in delays, financial shortfalls, or even loss of deposit. The real question is not whether an agent is mandatory, but whether you have the confidence and expertise to manage the process properly.

Buying a BTO Flat

*Agent Not Required. 

When purchasing directly from the Housing & Development Board, the structure is relatively straightforward because you are dealing directly with HDB.

You apply during a launch, ballot for a unit, secure financing approval and proceed through signing and key collection stages. In most BTO cases, buyers do not engage property agents. The portal is guided, and there is no negotiation with an open-market seller.

That said, financial planning remains crucial. Your HDB Flat Eligibility (HFE) letter determines not only your eligibility to buy, but also your CPF housing grants and HDB loan amount. Misunderstanding loan limits or grant entitlement can affect your long-term affordability. While the BTO process itself is manageable, the financing structure behind it should not be treated casually.

Buying a Resale HDB Flat

*Agent Not Required. But having one will save you lots of paperwork problems. 

Purchasing a resale HDB flat involves multiple moving parts, financial eligibility, negotiation, valuation risk, legal documentation and strict timelines. While the process is digitalised through the Housing & Development Board portal, buyers must ensure each step is executed correctly.

Below is a clear and structured step-by-step breakdown.

Step 1: Obtain Your HFE Letter

Before viewing or making any offer, apply for your HDB Flat Eligibility (HFE) Letter.

The HFE confirms:

• Your eligibility to buy a resale flat
  
• CPF housing grants eligibility
  
• HDB loan eligibility (if applicable)
  
  

Without an approved HFE, you cannot proceed with a resale transaction.

Step 2: Secure Loan Eligibility (HDB or Bank)

Decide early whether you will take:

• An HDB concessionary loan
  
• A bank loan (Check out the latest rate here) 
  
  

This affects:

• Downpayment structure
  
• Mortgage Servicing Ratio (MSR)
  
• Cash and CPF planning
  
  

Proper loan structuring ensures you do not face shortfalls later during valuation or completion.

Step 3: House Hunting & Price Negotiation

Once financially ready:

• Contact sellers or seller’s agents
  
• Review recent transacted prices
  
• Assess potential Cash Over Valuation (COV) risk
  
• Confirm ethnic quota compliance
  
  

Price negotiation must be done carefully because valuation may not match the agreed purchase price.

Step 4: Issuance of Option to Purchase (OTP)

When price is agreed:

• Pay $1,000 option fee
  
• Seller grants you a 21-day OTP
  
  

This 21-day window is critical. During this period, you must finalise your financing and valuation.

Step 5: Request for Valuation (If Taking Bank Loan)

After OTP issuance:

• Submit valuation request via HDB Portal
  
  

If valuation is lower than the agreed price:

• The difference becomes COV
  
• COV must be paid in cash
  
  

Understanding this risk before exercising the OTP is crucial.

Step 6: Exercise the OTP

If financing and valuation are confirmed:

• Pay balance option fee (up to $5,000 total including initial $1,000)
  
• OTP is officially exercised
  
  

Once exercised, backing out may result in forfeiture of deposit.

Step 7: Engage Conveyancing Services

Depending on your loan type:

• HDB legal services (for HDB loan)
  
• Private lawyer (for bank loan)
  
  

The lawyer handles:

• Legal transfer of ownership
  
• Mortgage documentation
  
• CPF disbursement
  
  

Step 8: Submit Resale Application via HDB Portal

Both buyer and seller must submit the resale application.

HDB will review:

• Eligibility compliance
  
• Financial documents
  
• Grant approvals
  
  

Once approved, completion date will be scheduled.

Step 9: Pay Buyer’s Stamp Duty (BSD)

BSD must be paid within 14 days of the HDB approval date.

Failure to pay on time results in penalties. This is a mandatory statutory requirement.

Step 10: Completion Appointment

Typically around 8 weeks after submission:

• Balance purchase funds are disbursed
  
• Keys are handed over
  
• Ownership officially transfers
  
  

Can You DIY the Entire Process?

Yes. Many buyers today complete resale transactions without appointing a property agent. The HDB portal is streamlined, and information is accessible. If you are financially literate, comfortable negotiating and confident managing deadlines, it is possible to handle the process independently.

However, the risk lies not in filling out forms, but in structuring the purchase correctly.

Loan eligibility under HDB and bank financing follows different frameworks, including MSR calculations and stress-test rates. CPF usage affects your long-term retirement adequacy. Valuation risk impacts how much cash you must prepare. Even minor miscalculations can create unexpected financial pressure.

An agent’s role traditionally focuses on marketing and negotiation. But buying a home is ultimately a financial transaction first and a property transaction second. The largest risk most buyers face is not paperwork, it is the loan financing 

Where Mortgage Advisory Matters

At Fairloan Mortgage Advisory, we are not property agents. We do not sell houses or collect property commissions. Instead, we focus purely on ensuring the financing and procedural aspects of your purchase are executed correctly.

This includes reviewing your HFE outcome, structuring the most suitable loan, assessing valuation exposure before you commit, coordinating with banks and lawyers, and overseeing timelines to prevent costly errors.

In short, while engaging a property agent is optional, ensuring the process is done right is not.

Final Verdict

You do not need to engage an agent to purchase a BTO or resale HDB flat in Singapore. The system allows you to DIY.

But whether you should depends on your experience, financial clarity and confidence in managing critical steps such as HFE approval, loan structuring, OTP timelines, valuation risks, legal conveyancing and stamp duty compliance.

Property transactions are unforgiving of mistakes. When in doubt, it is prudent to seek professional oversight.

If you prefer unbiased financial guidance without paying property commission, Fairloan Mortgage Advisory is well positioned to guide you through every stage of your HDB purchase journey, ensuring the process is smooth, compliant and financially optimised from start to completion.