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)

Balance SERS compensation

The remaining amount will form your balance compensation.

  • You may advance up to $35,000 (if any, after setting aside a $1,000 retention sum) from the balance compensation after key collection to help with the renovation of your new flat, provided you do not need it to pay for the new flat.
  • If needed, the remaining proceeds (if any) 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*)
  • 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.


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 flats, 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.

HDB credit assessment

The housing loan that can be offered will depend on the following:

  • Applicants’ age, monthly income and financial situation
  • Loan repayment period which is capped at 25 years, or up till the applicant is 65 years old, or remaining lease of the flat at the point of flat application minus 20 years, whichever is shorter
  • Monthly instalment which is capped at 30% of applicant’s monthly income
  • Prevailing interest rate which is pegged at 0.1% above the CPF Ordinary Account (OA) interest rate (depending on a review every three months)
  • Loan limit which is up to 85% of the purchase price (or pro-rated accordingly if the remaining lease does not cover the youngest buyer/applicant to the age of 95 at the point of flat application)
  • Amount of savings in the applicants’ CPF OA. Applicants may use their savings in their CPF OA to pay the stamp and legal fees, as well as premium for the CPF Home Protection Insurance (if this applies). You also have the option of retaining up to $20,000 in your CPF OA. The rest of the available CPF OA balance must be used for the flat purchase, before an HDB housing loan is disbursed

If you are applying for a second or subsequent HDB concessionary loan, you must use the following to buy the replacement flat:

  • All available money in your CPF OA with the option of retaining up to $20,000 in your CPF OA
  • Up to 50% of the balance compensation. You may keep, the advance payment from your balance compensation or half of the cash proceeds, whichever is more, subject to maintaining a minimum retention sum of $1,000 

Example of a 3-room flat owner buying a replacement flat

Cash Flow

Example 1

Example 2

Example 3

Balance compensation




Retention sum




Remaining balance compensation




Amount you can keep (advance payment of up to $35,000 or 50% of remaining balance compensation, if this applies)

(100% of net cash proceeds)


(50% of net cash proceeds) 

Amount to reduce second concessionary loan




Planning assistance

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

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 flats
    • 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.