Take a look at the steps involved in receiving your bill and paying your upgrading cost. You can also learn about the interest rate that is used to calculate the amount payable.
Find out how you can pay your upgrading cost after you receive the invoice.
You will only start to pay your share of the upgrading cost after all upgrading works in your precinct are completed. We will send you an invoice to inform you of the amount payable.
You can choose any of our payment options, and make payment arrangement with your flat’s managing HDB Branch within 1 month from the invoice’s date of issue. Otherwise, monthly interest and late payment charges will be incurred on the outstanding balance.
You can choose to make an outright payment or pay in monthly instalments.
If you would like to pay your upgrading cost in full, you can choose to pay by:
You can take up an instalment plan for monthly payments by CPF of up to a maximum of 10 years, at the prevailing interest rate. You can apply for an instalment plan online with your Singpass
During the course of your monthly instalment plan, you can reduce the outstanding upgrading cost balance and repayment period by making a lump sum payment (partial repayment). You will receive an interest rate rebate if your lump sum payment is $500 or more. The interest charged includes the day that we receive the payment.
You may submit your application for lump sum payment (partial repayment) via My HDBPage. Upon logging in, look under 'My Flat>Purchased Flat>Financial Info>Other Related Services'.
You can make a lump sum payment (partial repayment) using any combination of the following payment services:
Instructions for payment modes
Only flat owners are allowed to pay by CPF from their CPF Ordinary Account.
You can access My HDBPage using your Singpass for pre-filled GIRO form. Print, sing and mail it to HDB.
You can also apply online if you have internet banking account with OCBC or UOB.
GIRO deductions will be made on the following dates:
We will deduct the amount on the next working day if the date falls on a Saturday, Sunday or public holiday. You can check your payment via My HDBPage on or after the 5th of the following month.
For every unsuccessful GIRO deduction, the bank may impose a penalty charge. We may also impose a late payment charge on the outstanding payments. Please maintain sufficient funds in your GIRO bank account to meet the specified payment.
If you wish to change the GIRO deduction amount, you can submit your request online via My HDBPage.
eNETS Debit or PayNow via SGQR
If you are making an online lump sum payment (partial repayment), you can do so via the eNETS Debit e-Service or PayNow via SGQR. The maximum amount that you can pay via eNETS Debit or PayNow depends on the withdrawal limit that you set with your bank. Therefore, please check with your bank before proceeding with the payment.
You will need to have an internet banking account with any of these participating banks:
For eNETS Debit
For PayNow via SGQR
There will be a 2-Factor Authentication for payments above certain amount as set by the bank.
Please ensure that you make your payment by the proposed date for lump sum payment (partial repayment).
AXS Channels: AXS Station (Kiosk), AXS m-Station (Mobile app) and AXS e-Station (Online)
You can make your NETS payment via any AXS Station (Kiosk), m-Stations (Mobile app) or e-Stations (Online). The maximum NETS amount payable depends on the limit set by your bank or by yourself with your bank.
If you have applied to pay for your upgrading cost through instalments, you can choose to redeem your upgrading cost without any fee imposed.
You may submit an online application to redeem your upgrading cost via My HDBPage. Upon logging in, look under 'My Flat>Purchased Flat>Financial Info>Other Related Services'.
Alternatively, you can download the application form for redemption of upgrading cost and submit the completed form by post to your managing HDB Branch.
Calculating your estimated redemption amount
To estimate your redemption amount, you can check your outstanding balance via My HDBPage.
The amount will include interest computed up to the proposed date of redemption that is scheduled 1 month from the application form’s date of receipt. The estimated redemption amount is calculated as such:
Estimated redemption amount
Outstanding upgrading cost as at the end of the application month
Interest (charged from the beginning of the redemption month up to the proposed redemption date)
$A × (R% ÷ 12) × (N ÷ M)
A = outstanding upgrading cost as at the end of the application month
R = prevailing per annum HDB interest rate charged on your upgrading cost
N = number of days from the beginning of the redemption month up to the proposed redemption month
M = total number of days in the proposed redemption month
For example, for an application made on 15 June, the proposed redemption date will be 14 July. With an outstanding upgrading cost balance of $5,000 as at the end of June and an interest rate of 2.6% per annum, the proposed redemption amount would be:
Proposed redemption amount
$5,000 × (0.026 ÷ 12) × (14 ÷ 31)
If you are:
You can only pay your upgrading cost by CPF if you have an existing arrangement with us to pay your monthly instalment by CPF.
You can only pay by GIRO if you have an existing arrangement with us to pay your monthly instalment by GIRO.
Access My HDBPage using your Singpass for pre-filled GIRO application form. Print, sign and mail to HDB. You can also apply online if you have internet banking account with OCBC or UOB.
If you wish to change the GIRO deduction amount, you can submit your request online via My HDBPage .
If you are making an online redemption, you can use the eNETS Debit e-Service or PayNow via SGQR to make your payment. The maximum amount that you can pay via eNETS Debit or PayNow depends on the withdrawal limit that you set with your bank. Therefore, please check with your bank before proceeding with the payment.
For eNETS Debit
For PayNow via SGQR
Please ensure that you make your payment by the proposed date of redemption.
You are given 1 month from the date of billing to pay for your upgrading cost in full or make arrangements to pay by monthly instalments. Late payment charges apply if you do not make any arrangement to settle your upgrading cost by the bill expiry date or pay your monthly instalment on time.
From 1 April 2008, the computation of late payment charges has been revised for easier understanding.
The revised computation is based on 2% above the average prime lending rate (PLR) determined by the Ministry of Finance. The late payment rate is reviewed annually and fixed on 1 April. The current late payment rate is 7.5% (average PLR of 5.5% + 2%) per annum.
Late payment charges will continue to be imposed based on the total outstanding upgrading cost or outstanding instalment as at the end of every month, rounded up to the nearest $0.05.
If you have not made any arrangement to settle your upgrading cost in full by the bill expiry date that is 1 month from the invoice’s date of issue, late payment charges will be imposed based on the total outstanding upgrading cost as at the end of the month.
Any payment received by us will first be used to settle the outstanding late payment charges. The balance will then be applied towards the payment of the other outstanding charges.
If you have opted to pay your upgrading cost in monthly instalments, the instalment payments are due and payable on the 1st of every month. If you do not pay the instalment payment within the month, a late payment charge will be imposed based on the outstanding instalment as at the end of the month.
If you are currently paying through GIRO, the late payment charges and the arrears amount, including your current month’s charges, will be deducted from your bank account on the 28th of the month. If the deduction is unsuccessful, we will make another attempt on the 6th of the following month. If the date falls on a weekend or public holiday, the deduction will be made the next working day. The GIRO payment will be posted to your upgrading cost account on the last day of the month. You may check your payment via My HDBPage on or after the 5th of the following month.
Your bank may impose a penalty charge for every unsuccessful GIRO deduction and we may also impose a charge for late payment. Hence, please maintain sufficient funds in your GIRO bank account to meet the specified payment.
There are different interest rate schemes for upgrading costs paid by instalments.
Singapore Citizen households which opt to pay the upgrading costs by instalments will be charged the HDB concessionary interest rate at 0.1 percentage points above the prevailing CPF interest rate. The HDB concessionary interest rate is revised quarterly in January, April, July, and October in tandem with the revision of the CPF interest rate.
The concessionary interest rates for the last quarter and the prevailing quarters are as follows:
HDB market interest rate
Non-Singapore Citizen households and corporate ownership who are billed for their share of the upgrading cost will be charged the HDB market interest rate if they opt to pay the upgrading cost by instalments.
The HDB market interest rate is pegged to an Adjustable Rate Mortgage (ARM) index. The ARM index is computed based on the average of the non-promotional HDB housing loan rates of the 3 local banks, namely (DBS (POSB) Bank, OCBC Bank, and UOB, subject to the floor rate of the HDB concessionary interest rate.
The current HDB market interest rate is 3.16% p.a. The rate is reviewed on the 15th of each month, and any revision will take place on the first day of the second month that follows.
For example, if the ARM index changes resulting in a corresponding revision in of the HDB market interest rate on 15 January, the new rate will take effect for payments due on 1 March.
The HDB mortgage interest is computed on a monthly rest basis, where interest is imposed monthly based on the outstanding loan balance at the beginning of the month:
Monthly interest payable
Outstanding loan balance as at 1st of the month
Where R = interest rate p.a.
Here is an example of how the outstanding loan balance as at the 1st of the month is computed:
Outstanding loan balance (as at 1 September 2014)
Outstanding loan balance (as at 1 August 2014)
Interest charged for August 2014
Payment made in August 2014
Convert upgrading cost interest rate
Learn more about converting your upgrading cost interest rate.