Eligibility Conditions for HDB Housing Loan

The eligibility conditions to apply for an HDB housing loan are detailed below. Alternatively, you can also use these enquiry facilities:

 

Eligibility

You can apply for a housing loan from HDB if you and your family members meet the following eligibility conditions.

Citizenship

  • At least one buyer is a singapore citizen

Household Status

  • Have not previously taken two or more housing loans from HDB
  • Have taken one housing loan from HDB and the last owned property is not a private residential property (local or overseas) such as:
    • HUDC flat
    • Property acquired by gift
    • Property inherited as a beneficiary under a will or as a result of the Intestate Succession Act
    • Property owned/ acquired/ disposed of through nominees

Income Ceiling

Average gross monthly household income does not exceed:

  • $14,000* for families
  • $21,000* for extended families
  • $7,000* for singles buying a 5-room or smaller resale flat or a 2-room new flat in a non-mature estate, under the Single Singapore Citizen (SSC) Scheme

* For HLE letter applications and flat applications received before 11 September 2019, the income ceilings are $12,000 for families, $18,000 for extended families, and $6,000 for singles.

If an applicant or occupier is unemployed for less than three months, his/ her average income will be computed based on the actual number of months he/ she has worked.

To find out about the documents to submit, please refer to our income guidelines.

Ownership/ Interest in Property

  • Must not own or have disposed of any private residential property in the 30 months before the date of application for an HDB Loan Eligibility (HLE) letter. A private residential property (local or overseas) will include:
    • Property acquired by gift
    • Property inherited as a beneficiary under a will or as a result of the Intestate Succession Act
    • Property owned/ acquired/ disposed of through nominees
  • Do not own more than one market/ hawker stall or commercial/ industrial property
  • If you own only one market/ hawker stall or commercial/ industrial property, you must be operating the business there, and have no other sources of income

Remaining Lease

  • The loan amount will depend on the extent the remaining lease can cover the youngest buyer to the age of 95.
  • Use the payment plan calculator to find out the payments required at various milestones for the purchase of a new or resale flat, and check that you have sufficient budget before committing to buy a flat.

Remaining lease of flat is more than 20 years and covers youngest buyer till the age of

HDB Housing Loan

≥ 95 years

Allowed, subject to:

  • Loan-to-Value (LTV) limit* of 90%; and
  • Loan tenure is the shortest of:
    • 25 years;
    • 65 years minus the average age of the buyers; or
    • Remaining lease at the point of flat application+ minus 20 years

< 95 years

Allowed, subject to:

  • Pro-rated LTV limit of 90% based on the extent the remaining lease can cover the youngest buyer till the age of 95; and
  • Loan tenure is the shortest of:
    • 25 years;
    • 65 years minus the average age of the buyers; or
    • Remaining lease at the point of flat application+ minus 20 years

Notes:
* The LTV limit refers to the maximum amount of loan a flat buyer can take up, expressed as a percentage of the purchase price or flat value.

+ For flat applications received before 10 May 2019, HDB housing loan may be reduced or disallowed if you are buying or taking over ownership of a flat with a remaining lease of less than 60 years.

The HDB housing loan amount you can take will depend on credit assessment, Loan-to-Value limit, remaining lease of the flat you are buying or taking over, and other HDB policies applicable at the point of the flat application. 

Income ceiling for extended family

The average gross monthly household income of extended families is calculated as follows:
 
Category Income of Group A
(cannot exceed $14,000* per month)
Income of Group B
(cannot exceed $14,000* per month)
Income Ceiling of Extended Family
Parents^ with single children Parents with a single working child Other single children Total incomes of Groups A and B must not exceed $21,000
Parents^ with married child+ Parents with single working children (if any) Married child's+ family

^ Includes widow/ widower or divorcee

+ Includes applicants applying under the Fiancé/Fiancée Scheme

* For HLE applications and flat applications received before 11 September 2019, the income ceilings are $12,000 for families and $18,000 for extended families.

Example

A married couple with three working children wishes to get an HDB housing loan to buy an HDB flat. Their average gross monthly incomes are as follows:

Husband = $4,000
Wife = $4,000
Child 1 = $5,000
Child 2 = $3,000
Child 3 = $5,000

Their average gross monthly income as an extended family works out to be as follows:

Income of Group A

  • Parents and one child
  • Cannot exceed $14,000*

Income of Group B

  • Remaining two children
  • Cannot exceed $14,000*

Income Ceiling of Extended Family

  • Total income of Groups A and B must not exceed $21,000*
Husband + Wife + Child 2 = $11,000 Child 1 + Child 3 = $10,000
$21,000

The extended family meets the income ceiling.

* For HLE applications and flat applications received before 11 September 2019, the income ceilings are $12,000 for families and $18,000 for extended families.

HDB Loan Eligibility (HLE) letter

If you wish to take an HDB housing loan to buy or take over ownership of a flat, you will need to first apply for an HDB Loan Eligibility (HLE) letter before committing to the transaction. The HLE letter will be valid for 6 months. You have to wait out 30 months from the date of disbursement of an HDB housing loan before you may apply for another loan.

Do apply early as you need to have a valid HLE letter when you:

  • Book a new flat^ with HDB*#
  • Obtain an Option to Purchase from a resale flat seller and submit a resale application
  • Apply to take over the ownership of an existing flat (by way of transfer)

Notes:
^ There is no mortgage loan financing for the purchase of a short lease 2-room Flexi flat. You will have to pay for the flat using your cash and/ or CPF savings.

Eligible first-timer couples who are full-time students or National Servicemen, or have completed their studies or National Service in the last 12 months before their flat application may qualify to defer the income assessment for an HDB housing loan and the Enhanced CPF Housing Grant (EHG) till about 3 months before key collection.

# Applicants without a valid HLE letter when they book a flat will not be eligible to apply for an HDB housing loan.

About the HLE letter

Knowing the housing loan amount will help you to work out your budget to buy, or take over ownership of a flat. The HLE letter is a financial planning tool, and will provide information on the:

  • Eligible loan amount
  • Monthly instalments
  • Repayment period
  • Amount of cash proceeds from disposal of the existing or last-owned flat to be used to pay for the next flat (if applying for second HDB housing loan)
  • Other terms and conditions

Validity of HLE letter

It will be valid for six months from the date of issue. There is no need for re-assessment during this period, so long as there is no change in financial position and family members. A week before expiry of the HLE letter, you may apply for a new one if you still need a valid HLE letter.

Review of HLE letter

The loan offer will be reviewed if:

  • Any given information is untrue or incorrect
  • There are any changes in your household income, family nucleus or other circumstances which may affect your eligibility for an HDB housing loan and purchase/ take over the ownership of a flat
  • You and your family members listed in the application do not comply with any of the terms and conditions to buy a flat and/ or take an HDB housing loan
  • There are any changes in HDB policies which may affect your eligibility to buy a flat and/ or take an HDB housing loan

If you have purchased an uncompleted flat from HDB, we will review your financial position nearer the completion of the flat. This is to confirm that there is no change in your ability to service the housing loan.