You may finance your flat purchase with a housing loan from a financial institution (FI) that is regulated by the Monetary Authority of Singapore (MAS).
Find out the key considerations and important information when taking a housing loan from an FI below.
Understand the terms and considerations when taking an FI housing loan.
Varies among FIs and may change with market conditions.
View and compare housing loan packages offered by the participating FIs.
Refers to the maximum amount of housing loan a flat buyer can take up, expressed as a percentage of the lower of the purchase price or flat value.
At least 5% of the flat price or value (whichever is lower) has to be paid in cash. The remaining balance can be paid in cash, CPF savings in your Ordinary Account (OA), and/ or housing loan.
The minimum cash payment will depend on the flat buyers’ age, loan period, and whether there are any outstanding housing loans.
You may use any amount in your CPF OA for flat purchase, up to the applicable limits as follows:
When the allowed CPF amount is used up, you need to pay for the balance purchase price and/ or the monthly mortgage instalments in cash.
For more information on the use of CPF savings, you may use CPF Board’s calculator.
You may refinance the FI housing loan with one from another FI or a different interest rate package. Do check with the FI on the terms and conditions (e.g., lock-in period).
You cannot refinance to an HDB housing loan.
If you sell an HDB flat with an outstanding housing loan from an FI, the sales proceeds will be applied in the following order:
The FIs offer a variety of housing loan packages with different features and benefits. Evaluate your options and understand the terms and conditions of your housing loan before making a decision and committing to a flat purchase.
Find out when and where to apply.
Apply early for an In-Principle Approval (IPA) from the FI for a preliminary assessment of your housing loan eligibility.
You will need to obtain a valid Letter of Offer to confirm the loan offer from an FI before you can:
Do plan ahead and give yourself enough time to:
Approach any FIs regulated by the Monetary Authority of Singapore to check your loan eligibility.
You may view the list of FIs from the Financial Institutions Directory. Do request a Customer Information Sheet from the FIs for your reference.
You do not need a housing loan if you have sufficient cash and/ or CPF savings to pay for the flat purchase in full. If you require a housing loan, you may take it from HDB or the FI, subject to meeting the eligibility criteria and credit assessment guidelines.
You have to take a housing from an FI if you are buying a unit from a property developer under the Executive Condominium Housing Scheme.
Learn more about taking a housing loan from FIs and debt management.
Plan your finances and make an informed decision with the following guides:
These articles were produced by the Association of Banks in Singapore (ABS) in close collaboration with major FIs, the Consumers Association of Singapore, and MoneySENSE.
Find out the conveyancing and legal services for your flat purchase.
The purchase of HDB flats require the services of solicitors for the conveyancing and mortgage (if you are taking a housing loan). We provide these legal services for those who are taking a housing loan from HDB to buy a new or resale flat.
If you are taking a housing loan from an FI, do take note of the following requirements, depending on your arrangement with the FI:
HDB can act for you in the purchase and/ or mortgage of the flat.
However, if a personal guarantee is required by the FI to secure the housing loan, HDB cannot act for you in the mortgage.
To engage our legal services, you will need to submit a signed Warrant to Act which will be provided by HDB.
Plan for your flat purchase with our ABCs of financing planning and work out your budget using our financial tools.
Find out more about the types of HDB flats available for sale and design features of new flats.