How HDB’s new exercise will help flat buyers own homes the next day

Starting from the middle of the year, you’ll be able to book an HDB flat the day after your application.

The new sale exercise offers flats on a rolling basis throughout the year.

Under the older system, unsold BTO flats are only available during a Sale of Balance Flats (SBF) or Re-Offer of Balance Flats (ROF) exercises. These events are semi-annual, which means you have to wait to get a shot at scooping up unsold BTO flats.

Under SBF or ROF, there is a week long wait after applications close, to find out if the application has been successful. Under the new sale exercise, results will be made known the next working day.

READ: FHR vs SIBOR: When it comes to loans, which home mortgage works best for you

The new scheme does not require the applicant to specify the flat type or location. Flats are made available according to your eligibility, on a first-come, first-serve basis.

According to the Minister of National Development, Lawrence Wong, the new sale exercise will be tested out on a small batch of 120 flats in the middle of the year.

HOW DOES THIS IMPACT FLAT BUYERS?

It makes the home buying process infinitely faster and more flexible.

1. EASE OF OWNERSHIP

Instead of waiting two to three years for a BTO launch, the new exercise allows potential home buyers to own a flat the next working day.

2. MINIMISE NEED FOR RENTAL

The new sale exercise stacks with SBF and ROF, minimising the need to rent while waiting for a flat.

3. FLEXIBLE HOME OWNERSHIP

You will no longer have to worry about delays in getting your flat. Under the new scheme, homeowners will be able to time the purchase, making financial planning easier.

That said, homeowners should be mindful not to allow the first-come, first-serve ruling rush you into making a decision.

This article first appeared on 99.co.