Planning

Early and prudent financial planning for your flat purchase will make for an easier, more practical flat search. Here are the main considerations to take into account:

  • Amount of available cash and CPF Ordinary Account savings
  • Probable amount of eligible CPF Housing Grant
  • Eligible housing loan amount, and whether you can pay it off over the long term
  • Current and expected recurrent payments, fees, and other financial commitments

Cash savings

You will need sufficient cash savings for the payment of your HDB flat or EC purchase. These include:

  • $10 administrative fee to be paid by credit card when you apply to buy a flat from HDB. For DBSS and EC applications, please check with the developer on the amount that you need to pay when you submit an application
  • Option fee
  • Cash portion of downpayment
  • Cash proceeds from the disposal of the last-owned flat if you are taking a second HDB housing loan

If you are taking a second HDB housing loan to buy the new flat, you will need to set aside part of the cash proceeds from the disposal of your current or last-owned flat. That amount will be used to reduce the second HDB housing loan amount.

CPF savings

The savings in your CPF Ordinary Account can be used to pay for your purchase of a property, including an HDB flat or EC unit. From 10 May 2019, the total amount of CPF money that can be used for a property purchase will depend on the type of property, type of housing loan, and whether the remaining lease of the property can cover the youngest buyer up to the age of 95. Details on the use of CPF savings and the applicable limits are shown in the Tables below.

For HDB flat applications received on or after 10 May 2019:

    Remaining lease offlat is at least 20 years and can cover the youngest buyer upto the ageof 95 Applicable limits for CPF Usage
    Yes

    The amount of CPF money that buyers can use is capped at thelowerof the valuation or the price of the flat at the time of purchase.

    No

    The use of CPF money will be pro-rated based on the extent the remaining lease of the flat can cover the youngest buyer up to the age of 95. This will help buyers set aside CPF savings for their housing needs during retirement (e.g. buying a replacement property).

For information on the use of your CPF savings to buy a flat, you may use the CPF Board's online calculator.

For HDB flat applications received before 10 May 2019:

    Remaining lease of flat Applicable limits for CPF Usage
    60 years or more

    ^The amount of CPF money that buyers can use is capped at thelowerof the valuation or the price of the flat at the time of purchase.

    More than 30 years but less than 60 years
    • Buyers may use their CPF money if the remaining lease of the flat can cover the youngest buyer up to the age of 80

    • Total amount of CPF money that can be used is capped at thelowerof the valuation or the price of the flat at the time of purchase.

^Further withdrawal of CPF money (up to applicable limits) for the flat purchase may be allowed if the buyers are able to set aside the Basic Retirement Sum in their CPF accounts.

For further enquiries on the use of your CPF money to buy a flat, please call the 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”.

CPF Housing Grant (if eligible)

CPF Housing Grants are housing subsidies that the Government gives to eligible Singapore Citizens, in the form of CPF Ordinary Account savings. They can be used for the initial payment to buy a flat, thus reducing the required housing loan amount.

You may wish to find out more about the different types of CPF grants.

Housing loan (if required)

To finance a flat purchase, you may apply for a housing loan from HDB or a home loan from the Financial Institutions (FIs) regulated by the Monetary Authority of Singapore.

HDB housing loan

You may apply for an HDB housing loan if your household meets all the eligibility conditions and credit assessment criteria.

If you would like to take an HDB housing loan, please indicate your interest in the new flat application. We will advise eligible applicants who may have a chance to book a flat to apply for an HDB Loan Eligibility (HLE) letter.

You will need to have a valid HLE letter when you book a flat.

For flat applications submitted to HDB on or after 10 May 2019:

Flat buyers may apply for an HDB housing loan up to the full 90% Loan-to-Value (LTV) limit, if the remaining lease of the flat can cover the youngest buyer till the age of 95. The LTV limit will be pro-rated if the remaining lease does not cover the youngest buyer up to the age of 95 at the point of the flat application. You can click on the following link to use the online calculator to compute the allowable CPF usage and HDB housing loan:

    If you do not meet the eligibility conditions to apply for a housing loan from HDB or are buying an EC unit, you will need to obtain a housing loan from an FI if a mortgage loan is required. A Letter of Offer must be obtained from the FI before exercising the Option To Purchase or signing the Sale & Purchase Agreement. Similarly, for flat applications submitted to HDB on or after 10 May 2019, there may be limits on the use of CPF savings and taking of a housing loan for the flat purchase if you are buying a flat with remaining lease that does not cover the youngest buyer up to age 95 as at the date of the flat application.

    To help you work out and plan your finances, we have put together information on financing a flat purchase.

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