Housing Loan from Financial Institutions

You may finance your flat purchase with a housing loan from a financial institution (FI) that is regulated by the Monetary Authority of Singapore.

To plan for your flat purchase, use this calculator to work out your budget and find out the payments required for the purchase of a new or resale flat. The calculator will help you estimate the eligible loan amount and provide information on the terms and conditions in taking up a housing loan from HDB and the FIs.

If you take up a housing loan from an FI, you will not be allowed to refinance the loan with a housing loan from HDB later on.

Must I take a housing loan from an FI?

You do not need a housing loan if you have sufficient cash and/or CPF savings to pay for the flat purchase in full. Otherwise, you will have to take a housing loan from an FI if one of the following applies to you:

 What is the repayment period?

The maximum repayment period for a housing loan from an FI is 30 years.

What is the loan ceiling?

Loan Tenure

No Outstanding Loan

One Outstanding Housing Loan

Two or More Outstanding Housing Loans

≤ 25 years

75%

45%

35%

> 25 years or extends beyond the borrower's age of 65

55%

25%

15%

When to apply

Apply early as you need to obtain a Letter of Offer from a financial institution (FI) before you can sign the Agreement for Lease (for a new flat) or exercise the Option To Purchase (for a resale flat).

Give yourself enough time to:

  • Evaluate the different housing loan options available
  • Apply for your chosen housing loan
  • Obtain and accept the Letter of Offer

Where to apply

Approach any FI to find out the loan amount you can get based on your financial situation.

For a list of all FIs, please check the Monetary Authority of Singapore website, or this Financial Institutions Directory. When approaching the FIs, we recommend that you request to have a Customer Information Sheet for your reference.

Applicable limits for CPF usage

Your CPF Ordinary Account savings can be used to service your housing loan. However, under the CPF Board’s requirements, there is a limit on the total amount of CPF savings that can be used for your flat purchase. Once that limit is reached, you will not be able to withdraw more of your CPF savings to pay for the flat.

The total amount of CPF money that can be used for the flat purchase will depend on the extent the remaining lease of the flat can cover the youngest buyer up to the age of 95. CPF money cannot be used for the purchase of a flat with a remaining lease of 20 years or less. You are advised to use the online calculator at CPF Board’s website to check the amount of CPF money that can be used for the flat purchase.

For further enquiries on the use of your CPF money to buy a flat, please call CPF Board Service Line at 1800 227 1188 during office hours.

Information on the remaining lease of an HDB block is available on the HDB Map Services under “Housing”.

Cash payment

The minimum cash payment will depend on your age, loan tenure, and whether you have other outstanding housing loans.

Loan Tenure < 25 years > 25 years or Age + Tenure > 65 years
No outstanding residential property loans 5% 10%
  • The cash payment is based on the purchase price or current market value of the flat, whichever is the lower.
  • Property owners may be considered as having no outstanding residential property loans as they are required to dispose of their existing property within 6 months from their next HDB flat or EC purchase.

Other information

You may also like to refer to these 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 housing loan from an FI

Articles produced by the Association of Banks in Singapore (ABS)

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, and MoneySENSE.

ABS promotes and represents the interest of the banking community in Singapore.

Legal services

We provide legal services such as conveyancing and mortgage, to buyers of new flats. If you are taking a housing loan from an FI, we 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, we will not be able 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. If you engage the service of a private solicitor, you will need to submit a letter from your solicitor to us.

Priority of payment

If you sell an HDB flat with an outstanding housing loan from an FI, the sales proceeds will be applied in the following order:

  • First: To discharge the outstanding mortgage loan with the FI
  • Second: To refund the CPF savings withdrawn for the purchase of the property
  • Third: To pay the interest on the mortgage loan (from the date of default in payment, if applicable), and the interest on the CPF monies withdrawn