Financing a New Flat

To plan how to pay for your new flat, learn how the Selective En bloc Redevelopment Scheme (SERS) compensation amount can be used for your new flat purchase and possible related expenses.

Using your SERS Compensation

SERS compensation

We will use your total compensation to pay off what you owe on your SERS flat. This includes:

  • Property tax
  • Outstanding housing loan
  • Amount to refund (with accrued interest) to your CPF ordinary account (OA)
Financing a new flat

Balance SERS compensation

The remaining amount will form your balance compensation. From the balance compensation:

  • There will first be a $1,000 retention sum set aside
  • From the amount remaining, you may get an advance payment of up to $35,000 to help with the renovation of your new flat, provided you do not need it to pay for the new flat. You can ask for the advance payment during key collection
  • If needed, the remaining proceeds can be used to pay for the new flat

When you return your SERS flat, the retention sum and any remaining amount will be given to you in cash.

Outstanding amount for new flat

You will be able to use all the CPF money (refund and savings) in your CPF OA to pay for the new flat. In the event that you do not have sufficient CPF money, you can pay the outstanding amount with a combination of:

  • Balance compensation (not including retention sum*)
  • CPF savings of additional co-owners
  • Personal savings
  • A housing loan

*The retention sum will be released as cash, together with any remaining balance compensation, when you return the SERS flat.

Financing a new flat

Important note for SERS flat owners aged 55 and above

If you are aged 55 and above, please read the additional information about refunded CPF money, home ownership considerations, and rehousing options.

Extra planning help

These videos can give you a better idea of how to plan the finances for your new flat.

How to finance your SERS replacement flat

Watch in: English  | Mandarin  | Malay  | Tamil

Choosing a same flat type

Watch in: English  | Mandarin  | Malay  | Tamil

Choosing a flat type that's right for you

Watch in: English  | Mandarin  | Malay  | Tamil


Getting a housing loan for the new flat

If you intend to take an HDB housing loan or a bank loan to pay for the replacement flat, these are the important details and conditions that apply.

Housing loan from HDB

If your existing flat is or was financed by an HDB concessionary housing loan, you will still be eligible for another HDB concessionary loan for the replacement flat. You must not own any private property*, if you intend to take a housing loan from HDB.

*Private property refers to any property (flat, house, building, or land) other than the SERS flat (whether residential or otherwise, including but not limited to HUDC apartments, executive condominiums (ECs), properties outside Singapore, properties acquired by gift or inheritance and properties owned, acquired, or disposed through nominees).


If you are eligible and intend to take an HDB concessionary loan to buy your new flat, you will need to get an HDB Loan Eligibility (HLE) letter. Our officers will invite you to apply for it when we serve the compensation notice to you.

Further conditions

If you take an HDB loan, you will not be able to get another HDB loan within 30 months from the date of purchase of replacement flat.

Loan amount

The maximum loan amount that can be granted depends on our credit assessment as listed below:

  • Maximum repayment period which is capped at 25 years, or up till you are 65 years, whichever is shorter
  • Monthly instalment which is capped at 30% of the gross monthly income, based on these assessed income types 
  • Interest rate which we may change from time to time, is set at 0.1% above the CPF ordinary account (OA) interest rate (currently reviewed every 3 months)
  • Loan limit which is up to 90% of the replacement flat's purchase price
  • You may retain up to $20,000 in your CPF Ordinary Account and use the rest of the available CPF Ordinary Account balance for the flat purchase, before we grant the housing loan. If you choose to do so, you can first set aside the amount needed to pay stamp and legal fees, as well as premium for the CPF Home Protection Insurance (if applicable), before using all of the remaining available savings

Planning assistance

Our SERS Financial Plan service can help you work out your finances by providing you your estimated loan amount and monthly instalments.

Use of SERS compensation and refunded CPF money

To help reduce your financial commitment for your second or subsequent HDB loan, you will have to reduce the loan by using:

  • All available money in your CPF Ordinary Account (after retaining up to $20,000 in your CPF Ordinary Account, if you choose to) 
  • Up to 50% of the remaining balance compensation (as long as you keep $1,000)

You may keep up to $35,000 or half of the cash proceeds, whichever amount is greater, before the remaining balance compensation is used to reduce the loan amount needed. Please see the table below for examples. 

Amount Type

Example 1

Example 2

Example 3

Balance SERS compensation




Retention sum




Remaining balance compensation




Amount you can keep as sales proceeds

(Up to $35,000 or 50% of the remaining balance compensation, if this applies)


(100% of the net cash proceeds)



(50% of the net cash proceeds)

Amount to reduce your second or subsequent concessionary loan




Housing loan from banks

You are not eligible for an HDB concessionary loan if any of these apply to you:
  • Your SERS flat is or was financed by an HDB market rate loan or bank loan
  • All the applicants and co-applicants are Singapore permanent residents
  • Any applicant, co-applicant, husband or wife, or other essential occupier forming the basic family unit in the application owns or has an interest in:
    • Private residential property (whether in Singapore or overseas)
    • HUDC apartments
    • Executive condominiums
    • More than 1 market or hawker stall, commercial, or industrial property (or both) inside or out of Singapore
    • 1 market or hawker stall, commercial, or industrial property and have other sources of income, or do not operate the business

If you prefer to take up a bank loan, you can check with the various banks to find out more about their housing loan packages.