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If you need financing to buy or take over ownership of a flat, you may apply for a housing loan from HDB or one from the financial institutions. Understand the key terms and considerations for the different loan options before making a decision.
Find out the eligibility conditions, credit assessment criteria and important information on the HDB housing loan below.
Check if you and all persons listed in the application meet the eligibility conditions.
You may also complete the questionnaire for a preliminary assessment of your eligibility for the purchase of a new or resale flat, housing grant(s), and an HDB housing loan.
All applicants and essential occupiers# listed in the application:
Intended flat purchase for the following profiles:
# An essential occupier is a family member who has enabled the applicant(s) to qualify to buy a flat. They do not have ownership of the flat and must remain in the flat application, as well as during the minimum occupation period (MOP) after the flat purchase.
Your average gross monthly household income must not exceed:
Refer to our income guidelines to find out the assessment criteria and required documents based on your employment type.
^ Private properties include but are not limited to houses, buildings, land, Executive Condominium (EC) units and privatised HUDC flats. You have acquired an interest in a property through purchase or when it is:
The loan amount will depend on the extent the remaining lease can cover the youngest buyer to the age of 95 and above.
Use the payment plan calculator to find out the payments required at various milestones to buy a new or resale flat, and check that you have sufficient budget before committing to a flat purchase.
New flat: Up to 80%^ of the purchase price.
Resale flat: Up to 80%^ of the lower of the resale price and value.
* The LTV limit refers to the maximum amount of housing loan a flat buyer may take up, expressed as a percentage of the lower of the flat price and value of the flat.
^ For flat applications submitted on or after 30 Sep 2022.
Flat buyers who have booked a new flat or submitted a resale application will be provided with a customised financial plan, which will include the applicable LTV limit at point of flat application (if they are taking an HDB housing loan), and the payments required at the various milestones of their flat purchase.
In addition to meeting the above eligibility conditions, your second HDB housing loan amount will be reduced by the full CPF refund and part of the cash proceeds from the disposal* of the existing or last-owned HDB flat. This promotes financial prudence and prevents over-borrowing.
To apply for a second HDB housing loan, you have to meet the following requirements:
You and the essential occupier have to use up to 50% of the cash proceeds from the disposal of the last-owned HDB flat.
You may retain up to $20,000 in your CPF Ordinary Account (OA) and use the remaining balance in your OA to buy the flat.
You will be charged commercial interest rate (pegged to the average non-promotional interest rate for HDB flats offered by the 3 local FIs+) for the housing loan to buy the next flat.
The interest rate will be converted to the concessionary rate after you have disposed of the existing flat, and used the CPF refund and up to 50% of the cash proceeds from the disposal to reduce the housing loan amount for the next flat. From the CPF monies refunded, you may retain up to $20,000 in your CPF OA.
Use the sale proceeds calculator to work out how much cash proceeds you need to use for your flat purchase. Be sure to secure sufficient financing before committing to sell your current flat or buy another one.
You have to take a housing loan from an FI if you need mortgage financing and one of the following applies to you:
Find out if you meet our assessment criteria.
Besides meeting the eligibility conditions, flat buyers have to fulfil our credit assessment criteria to apply for an HDB housing loan.
You may apply for an HDB Loan Eligibility (HLE) letter to check your loan eligibility. Do take some time to build up your finances and work records if you do not meet the credit assessment criteria for an HDB housing loan.
What you need to know about the HDB Loan Eligibility (HLE) letter and when to apply for one.
If you wish to take an HDB housing loan to buy or take over ownership of a flat, you have to first apply for an HLE letter before committing to the flat purchase.
Find out more about the HLE letter, when and where to apply.
Understand the considerations that determine your housing loan amount.
The HDB housing loan amount that you may take and repay over the loan period is based on the following:
Financial ability of flat buyers to service the mortgage instalments, to ensure that they do not borrow beyond their means.
This is based on flat buyers':
Capped at whichever is shortest:
To encourage flat buyers to borrow prudently, HDB uses the higher of the following to compute an eligible housing loan amount:
Pegged to the average non-promotional interest rates for HDB flats offered by the three local financial institutions, subject to a minimum of the concessionary interest rate.
The interest rate will be converted to the concessionary rate after the flat buyer has disposed of the existing flat and used the CPF refund and 50% of the cash proceeds received to reduce the second HDB housing loan amount.
Read more on the conditions to take a second HDB housing loan.
The interest payable on the HDB housing loan is computed on a monthly-rest basis or such other basis as HDB may decide. Find out more on the interest rate.
Refers to the maximum amount of housing loan a flat buyer may take up, expressed as a percentage of the lower of the flat price and value of the flat.
If the remaining lease of the flat does not cover the youngest buyer to the age of 95 and above at the point of flat application, the LTV limit will be pro-rated from 80%
^For flat applications submitted on or after 30 Sep 2022.
Flat buyers who have booked a flat with HDB or submitted a resale application will be provided with a customised financial plan, which will include the applicable LTV limit at point of flat application (if they are taking an HDB housing loan), and the payments required at the various milestones of their flat purchase.
Find out the requirements on the use of CPF savings for your flat purchase and for servicing the monthly instalments.
Buyers/ transferees have the option to:
The remaining balance in your CPF OA must be used to pay for the flat purchase or take over ownership of an existing flat, before the HDB housing loan can be granted.
The total amount of CPF savings that can be used to buy or take over the flat and pay the monthly mortgage instalments will depend on:
When the allowed CPF amount is used up, you have 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.
Find out more about the monthly repayment and how to save on interest payments.
Upon disbursement of the HDB housing loan, your first monthly instalment payment will start on the first day of the second month. Thereafter, your monthly instalments are due and payable on the first day of every month, until the housing loan is redeemed.
You can use your cash and/ or CPF savings to pay the monthly instalments, subject to the prevailing rules of CPF Board. If you choose to use cash instead of CPF savings, you can grow your retirement fund steadily with CPF interest rates. Find out more on the monthly repayment.
A smaller housing loan and paying it off early will give you greater financial flexibility for your other goals (e.g. building up retirement funds, investments, etc.).
To reduce your financial commitments and save on interest payments, you can also make regular partial payments or early repayment of your housing loan, or shorten your repayment period. Your monthly instalment will be adjusted accordingly. Find out more on servicing your HDB housing loan.
The insurance policies will protect you and your loved ones in the event of any unforeseen circumstances.
If you take an HDB housing loan to buy or take over ownership of a flat, you will have to buy these insurance policies:
The HDB fire insurance covers the cost of reinstating damaged internal structures, fixtures and areas built and provided by HDB. As it does not include home contents such as furniture, renovations and personal belongings, you are encouraged to buy additional home insurance from any insurer if you wish to go further to extend protection over your home contents. Find out more about the HDB Fire Insurance Policy.
For those who are not taking a housing loan, you are also encouraged to buy a fire and home insurance for your flat. You can do so from any insurer.
The Home Protection Scheme is a mortgage-reducing insurance scheme administered by the CPF Board. It insures CPF members and their families against losing their home, should the policy holder become permanently incapacitated or pass away before the housing loan is paid up.
Plan for your flat purchase with our ABCs of financing planning and work out your budget using our financial tools.
Financial institutions (FIs) offer housing loans with different conditions and benefits. Find out more here.
Find out the documents required and apply for an HLE letter to confirm your eligibility and the loan amount.
Find out more about the types of HDB flats available for sale and design features of new flats.