Housing Loan from Banks
Financial Planning

Buying an HDB flat is a long–term financial commitment that is likely to stretch more than 20 years. The HDB provides financial planning session to potential flat buyers. You can visit our Enquiry Counters at HDB Hub, Atrium 1st storey for advice.

Who has to take a bank loan?

Flat buyers who are not eligible for an HDB loan will have to apply for a loan from banks or financial institutions, if they need financing for their flat purchase.

You are not eligible for an HDB loan, if you or the essential occupiers:
    • have already taken 2 or more concessionary interest rate mortgage loans from the HDB previously. This is regardless of whether the previous loans taken were for buying of flats directly from the HDB or from the open market;
    • have already taken 1 concessionary interest rate mortgage loan and 1 housing subsidy previously and the property last disposed of was a private residential property;
    • own 2 or more owner-operated market/hawker stalls or commercial/industrial properties in or out of Singapore;
    • own 1 market/hawker stall or commercial/industrial property but do not operate the business yourselves;
    • own any private residential property in or out of Singapore.

If you wish to apply for a bank loan, please check with the banks/financial institutions on their housing loan packages.

What is the repayment period?

From 28 August 2013, the repayment period for bank loans to finance purchase of HDB flats is capped at 30 years.

Implementation Date

Transaction TypeCut-Off Date
Purchase of Resale flats / Transfer of Flat at Market ValueDate of granting of OTP on or after 28 August 2013

What is the loan ceiling?

The loan ceiling is based on the purchase price or valuation price, whichever is lower.

From 28 August 2013

Loan Tenure
No outstanding loan
≤ 25 years
> 25 years or loan period extends beyond borrower's age of 65

From 12 Jan 2013

Loan Tenure
No outstanding loan
With 1 outstanding housing loans
With 2 or more outstanding housing loans
≤ 30 years
> 30 years or loan period extends beyond borrower's age of 65

You will not be subjected to the lower loan ceiling when you obtain another housing loan for the purchase of an HDB flat if you are able to provide the financial institution granting the loan a copy of the signed undertaking to HDB committing to complete the sale of your sole existing property within the period stipulated in the undertaking.

Additional Measures to Ensure a Stable and Sustainable Property Market announced on 11 Jan 2013

Between 6 Oct 2012 and 11 Jan 2013

  • Repayment period up to 30 years
    Repayment Period + Buyer’s Age*
    No outstanding loan
    With 1 or more outstanding housing loans
    ≤ 65
    > 65
* The banks/financial institutions may continue to set their own lending guidelines on whether to use the average age of all buyers of a flat or the youngest buyer to determine the loan tenure.

  • Repayment period between 31 to 35 years#
    No outstanding loan
    With 1 or more outstanding housing loans
# Regardless of buyers’ age.

MAS's press release on 5 Oct 2012

Before 6 Oct 2012

  • No outstanding loan
    The loan ceiling is 80%.

  • One or more outstanding housing loans
    The loan ceiling is 60%.

When to Apply?

You must obtain a bank's Letter of Offer before you exercise the Option To Purchase.

Where to Apply?

You should consult any bank to find out the amount of loan which you can get based on your current income.

A list of all banks is available on the Monetary Authority of Singapore website:
Customer Information Sheet

If you are considering taking a bank loan, you may ask for a Customer Information Sheet. It is advisable to spend some time studying the different loan packages available from banks/financial institutions.

Useful information

These information would be useful if you are taking a housing loan from Banks:

    Hide details for CPF Withdrawal LimitCPF Withdrawal Limit

You can use the savings in your CPF Ordinary Account to service your housing loan. However, under the CPF Board's requirements, you are allowed to withdraw only up to a certain limit. Once the CPF withdrawal limit is reached, you will not be allowed to use your CPF money to pay for your flat.

To find out the maximum amount of CPF that can be used for the property, you may log on to the CPF Board's CPF Housing Withdrawal Limits Calculator (for flats with remaining lease of 60 years or more) (e-Service) or the Property with less than 60 Years Lease Calculator (for flats with remaining lease of less than 60 years, but at least 30 years) (e-Service).

If you are buying a flat with remaining lease less than 30 years, CPF monies cannot be used. This is applicable to resale applications received on or after 1 July 2013.

For enquiries on CPF withdrawal limits, you may call the CPF Board at 1800-2271188 or e-mail CPF Board.

Visit the Centralised Map Services to find out flat lease details.
    Hide details for Cash PaymentCash Payment

HDB flat buyers who are getting a mortgage loan from banks have to make a minimum cash payment of:

Loan Tenure
< 30 years
31-35 years
Age+Tenure > 65 years
No outstanding residential property loans
With one or more outstanding residential property loans
6 Oct 2012 - 11 Jan 2013
From 12 Jan 2013

The cash payment is computed based on purchase price or current market valuation of the flat, whichever is the lower.

Additional Measures to Ensure a Stable and Sustainable Property Market announced on 11 Jan 2013

Before 6 Oct 2012

HDB flat buyers who are getting a mortgage loan from banks have to pay a 5% cash payment.

If you have one or more outstanding housing loans (whether from HDB or a financial institution regulated by MAS) at the time of applying for a housing loan from banks or financial institutions, the cash payment is 10%.

    Hide details for Priority of PaymentPriority of Payment

When an HDB flat financed with a bank loan is sold, the sales proceeds will be applied in the following manner:

1st – to discharge the outstanding mortgage loan with the bank.

2nd – to refund the CPF savings withdrawn for the purchase of the property.

3rd – to pay the interest on the mortgage loan (from the date of default in payment) if applicable, and the interest on CPF money withdrawn.

The Association of Banks in Singapore (ABS) promotes and represents the interests of the banking community in Singapore.

The Association worked with major retail banks with CASE and MoneySENSE in producing the following articles. The aim is to help consumers understand money and debt management.

About Home Loans - Key Questions to Ask the Bank Before Taking a Home Loan
MoneySENSE Worksheet on Borrowing Money

Last Updated on 09 Dec 2014