Booking an HDB flat? You'll need a loan eligibility letter

APPLICANTS of Build-to-order (BTO) flats who intend to take out loans from the Housing and Development Board (HDB) will now need to produce a valid HDB loan eligibility (HLE) letter when they book the flat, said HDB on Wednesday, as it launched 3,995 new flats under the February 2015 BTO exercise.

Previously, potential flat buyers were required to produce the HLE letter only when they signed the agreement for lease, four months after booking a flat.

The HLE letter states the loan quantum for which the flat buyer is eligible, as well as the monthly instalments for the plan. Having this in black and white helps ensure that flat buyers are able to pay for their home, and are not overstretching their finances, said HDB.