You can choose to finance your flat with a housing loan from a bank that is regulated by the Monetary Authority of Singapore (MAS).
If you take a housing loan from a bank, you will not be allowed to refinance your flat with a housing loan from HDB.
You can if you choose to, or if any of these apply to you:
The maximum repayment period for a housing loan from a bank is 30 years.
Different loan ceilings will apply, depending on the date of booking or Option to Purchase.
No Outstanding Loan
1 Outstanding Housing Loan
2 or More Outstanding Housing Loans
≤ 25 years
> 25 years or loan period extends beyond borrower's age of 65
For more details, please refer to MAS's press release on 5 July 2018.
≤ 25 years
> 25 years or loan period extends beyond borrower’s age of 65
≤ 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 were announced on 11 January 2013.
Repayment Period + Buyer’s Age*
1 or More Outstanding Housing Loans
* 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.
No Outstanding loan
# Regardless of buyers’ age
MAS's press release on 5 Oct 2012
Apply early as you need to give us a bank’s Letter of Offer before you sign the Agreement for Lease (for new flats) or exercise the Option to Purchase (for resale flats).
Give yourself enough time to:
Approach any bank to find out the loan amount you can get based on your current income.
For a list of all banks, please check the Monetary Authority of Singapore website, or this Financial Institutions Directory. When approaching the banks, we recommend that you request for a Customer Information Sheet for your reference.
Your CPF Ordinary Account savings can be used to service your housing loan. However, under the CPF Board’s requirements, you may only withdraw monies for home payments up to the withdrawal limit. When the CPF withdrawal limit is reached, you may no longer use your CPF monies to pay for your flat.
The total amount of CPF that can be used for the flat purchase will depend on the extent the remaining lease of the flat can cover the youngest buyer to the age of 95. You are advised to check the amount of CPF that can be used for the flat purchase.
For information on the use of your CPF usage to buy a flat, you may use the online calculator at CPF Board’s website.
CPF monies cannot be used for purchase of a flat with 20 years remaining lease or less.
For further enquiries on the use of your CPF to buy a flat, please contact CPF Board Service Line at 1800 227 1188.
Information on the remaining of an HDB block is available on the HDB Map Services under “Housing”.
Your minimum cash payment* depends on your loan tenure, age, and whether you have other housing loans.
From 28 August 2013
Between 12 Jan 2013 and 27 August 2013
< 30 Years
31 to 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 January 2013
Before 6 October 2012
If you do not have any other housing loan, the minimum cash payment is 5%. If you have one or more outstanding housing loans, the cash payment is 10%.
You might also like to refer to this information:
Articles about money and debt management when buying a flat
Conveyancing and other legal services we provide if you are buying a new HDB flat
Priority of payment if you sell an HDB flat financed by a bank loan
For further information to help you learn more about money and debt management, you may like to read these articles:
These articles were produced by the Association of Banks in Singapore (ABS) in close collaboration with major retail banks, the Consumers Association of Singapore (CASE), and MoneySENSE.
ABS promotes and represents the interest of the banking community in Singapore.
We provide legal services such as conveyancing, to buyers of new HDB flats. If you are taking a housing loan from a bank, we can act for you in the purchase and/ or mortgage of the flat. However, if a personal guarantee is required by the bank to secure the housing loan, we will be unable to act for you in the mortgage.
If you wish to engage our legal services, please submit a signed Warrant to Act to us.
Alternatively, you can appoint a law firm to act for you. When you use a private solicitor, you will need to submit a letter from your solicitor to us.
If you sell an HDB flat that is financed with a housing loan from a bank, the sales proceeds are applied in the following order: