HDB financing guide · Updated 11 October 2026
HDB loan or bank loan?
Work out the cash first.
A lower opening rate can come with a tighter cash budget or a more expensive exit. Here is how to compare the two routes for the flat you want—and the household budget you need to protect.
Compare My HDB FinancingOpens an editable WhatsApp message. Start with your purchase stage and question; no financial documents are needed.
The useful starting point
Start with eligibility, cash and repayment terms.
An HDB loan deserves a closer look when…
You qualify for it, your eligible CPF can do more of the purchase funding, and you value the ability to repay early without an HDB early-repayment penalty. The concessionary rate follows CPF OA interest plus 0.1 percentage points and is reviewed quarterly.
A bank loan deserves a closer look when…
You can fund its cash requirement and a written package comparison makes sense over the period you expect to keep the loan. Check the later rate, fees and exit clauses together. Moving that mortgage to a bank closes the route back to HDB financing.
Per annum for 1 Oct–31 Dec 2026. Quarterly review; not a rate fixed for the life of the loan.
A ceiling under applicable conditions. Approval, age, tenure and remaining lease can reduce financing.
Of the lower resale price or valuation. Cash over valuation and other costs sit outside this figure.
Applicable HDB-flat mortgage repayments are assessed against gross income. A ceiling is not a comfortable budget.
Official policy figures checked 11 October 2026: CPF Board rate announcement, HDB loan rules, CPF loan comparison and MAS borrowing limits.
Can I fund the purchase?
Why 5% cash is not your whole cash budget.
For a resale flat, the loan is based on the lower of the agreed price and valuation. If you agree to S$650,000 and the flat is valued at S$620,000, the S$30,000 difference is cash over valuation (COV). Neither the housing loan nor CPF pays that difference.
A S$650,000 resale flat, with S$620,000 valuation
Hypothetical worked example*Assumes both routes approve S$465,000, with sufficient eligible CPF to cover the CPF/cash portion. Standard 75% bank LTV assumes no outstanding housing loans, tenure no more than 25 years for this HDB flat and a loan ending by age 65. HDB eligibility and remaining-lease rules also apply. Grants, stamp duties, legal/valuation fees, insurance, renovation and other costs are excluded. Approval and CPF usage may differ. The bars represent the S$650,000 purchase price, not a loan offer. HDB budgeting guidance.
How much cash will you need?
The price and assumed loan stay the same. Choose the eligible CPF available after applicable conditions, then compare the cash needed. No personal details are collected.
Try a CPF amount ↓
Calculation: cash = S$185,000 buyer funds − eligible CPF used. CPF is capped here at S$155,000 for HDB or S$124,000 for the bank, preserving the required cash portions. This is a funding illustration, not CPF eligibility advice; HDB's OA-use and retention rules still apply.
Check the full cash shortfall.
S$61,000 is the bank route's minimum cash in this example when eligible CPF covers S$124,000. If only S$100,000 CPF is available, the cash requirement becomes S$85,000 under either route. A lower approved loan increases the buyer contribution again.
Map each payment date.
Option payments, completion money and other bills do not all fall due together. Build a payment calendar from the actual resale or new-flat process. Treat deposits already paid as part of the purchase funding, so you do not add them twice.
Cash today, CPF tomorrow
Using CPF changes which savings you keep.
CPF OA can fund eligible housing payments, subject to limits. It can leave more cash available for renovation, a move or a period of lower income. But CPF used for housing is money no longer sitting in your OA for longer-term needs.
For an HDB loan, each buyer can retain up to S$20,000 in OA; the rest of the available OA balance generally must go towards the purchase before the HDB loan is taken. Check the specific HDB financial plan rather than assuming you can choose any CPF amount while keeping the maximum loan.
When you sell, CPF used for housing and accrued interest generally have to be refunded from the sale proceeds. Accrued interest is a restoration of retirement savings, not interest charged by the mortgage lender. If a property is sold at market value and the proceeds after the housing loan are insufficient, CPF's rules generally do not require a cash top-up of the refund shortfall.
Sources: HDB CPF retention rules and CPF housing refunds.
Before comparing packages
HFE first. A bank offer is a separate step.
The HDB Flat Eligibility letter establishes your eligibility to buy a flat, applicable grants and HDB-loan position. A bank's indicative approval does not replace HFE, and HFE does not guarantee a bank loan.
Average gross monthly household-income ceilings for HFE applications from 24 August 2026. Citizenship, household scheme, property ownership and previous HDB loans also affect eligibility. These figures do not confirm an individual application. HDB revised ceilings.
- 01
Apply before committing to the flat.
A valid HFE is required when applying for a new HDB flat. For resale, obtain it before receiving the seller's OTP and keep it valid when submitting the resale application. Apply early; HDB assesses the complete documents.
- 02
Use the confirmed funding position.
Read the loan amount and grants in the HFE outcome. If considering a bank, request its assessment separately. An In-Principle Approval is indicative; it is not the final Letter of Offer.
- 03
Check the resale valuation and offer before exercise.
Update the cash budget once valuation is available. A resale buyer using a financial-institution loan must have a valid Letter of Offer before exercising the OTP. Its issue date must be on or before exercise.
- 04
For a new flat, follow the payment milestones.
Booking, downpayment and key-collection payments follow a different timetable. Any eligible payment arrangement has its own conditions. Revisit income, CPF, cash and loan terms as completion approaches.
Sources: HDB HFE process and resale OTP requirements. Use the requirements for your actual purchase stage.
Can I handle repayments?
Test a higher repayment before choosing the rate.
Keep the loan amount and tenure the same when comparing monthly payments. Then ask what happens if the rate moves or household income falls. A payment you can meet today can feel very different after childcare costs, a career break or an unexpected bill.
Bank fixed rates apply for a stated period; floating rates follow the package's reference rate and spread or other disclosed formula. Record the rate after the initial period, reset frequency and any floor. Today's SORA is not a forecast of every future instalment.
The 30% MSR applies to relevant HDB-flat financing; applicable bank loans also face the 55% Total Debt Servicing Ratio, which includes other recognised debt. Those rules assess borrowing capacity. Your own budget still needs room for living costs and reserves.
Sources: MoneySense loan structures and MAS debt-servicing limits.
Same S$465,000 loan.
Same 25-year tenure.
About S$243 more each month.
Calculated as a new, fully drawn loan with 300 equal monthly payments at each constant rate, excluding fees. The 2.6% assumption uses the prevailing HDB rate for Oct–Dec 2026, which is reviewed quarterly; it is not a 25-year rate promise. 3.6% is a hypothetical stress input, not a bank offer or forecast. An actual reset depends on the remaining balance and tenure.
See the calculation
Monthly payment = P × r ÷ [1 − (1 + r)−n], where P = S$465,000, r = annual rate ÷ 12 and n = 300. Percentage rates are converted to decimals. Figures rounded to cents.
Compare the period you will actually hold the loan
The lowest opening rate can lose over three years.
An initial rate is easy to compare. The harder—and more useful—comparison is the interest and costs over the same holding period. This example shows why the rate after year two matters.
| What is being compared | Illustration A | Illustration B |
|---|---|---|
| Rate assumptions | 2.0% → 3.5%2.0% for 24 months, then assumed 3.5% for 12 months | 2.4% for 36 monthsConstant within this example |
| Monthly instalment | S$1,970.92 → S$2,300.76Recalculated at month 25 over the remaining 276 months | S$2,062.73Throughout the 36 months |
| Interest over 36 months | S$33,094Rounded to the nearest dollar | S$32,020Rounded to the nearest dollar |
| Balance after month 36 | S$423,183Still owed after the comparison period | S$422,762Still owed after the comparison period |
Monthly-rest amortisation uses the payment formula above. A's payment is recalculated on its actual remaining balance after month 24, retaining the original end date. This does not predict real bank rates or compare a guaranteed 25-year HDB rate. Actual lender rounding and dates may produce small differences.
Use the same worksheet for your actual quotes.
- Hold principal and tenure constant. A longer tenure may reduce the instalment while increasing total interest; it may also affect the applicable loan limit.
- Write out every rate period. Record the initial rate, subsequent reference-rate formula and spread, and when each reset occurs. For a floating rate, test more than one scenario.
- Add costs over one common horizon. Compare interest paid, legal/valuation and other fees, and exit charges, less subsidies actually retained. A clawed-back subsidy is lost benefit; do not count the same amount twice.
- Keep the ending balance beside the cost. Check how much debt remains at the comparison date, especially if tenures or repayment structures differ.
- Use the fact sheet and Letter of Offer. Ask the lender to clarify the repayment schedule, Effective Interest Rate, lock-in, cancellation and bundled requirements in writing.
What flexibility am I giving up?
The refinancing decision has a one-way door.
You may refinance an HDB loan with a bank, subject to approval. Once that flat is financed through a bank, that mortgage cannot be refinanced back to HDB. A later purchase of a different flat is a separate eligibility question.
A fixed-rate period and a lock-in are different terms.
One tells you how long the stated rate applies. The other determines whether an early exit triggers charges. Their dates need not match. Read the start date, end date and exceptions in the Letter of Offer; “floating” does not automatically mean unrestricted repayment.
Ask about partial repayment, too.
A lump sum from savings or a bonus might reduce interest, but check notice periods, minimum sums and any prepayment or subsidy-clawback charge first. HDB imposes no early-repayment penalty; its procedures still apply. Bank terms depend on the specific offer.
Sources: HDB financial-institution loan rules, HDB repayments and DBS's example of package-dependent partial-repayment conditions. No DBS terms are assumed for other lenders.
Compare staying, repricing and refinancing on the same date.
Ask your present bank for a repricing offer as well as checking another lender's refinancing offer. Include legal and valuation costs, notice requirements, lock-in charges and subsidy conditions. A lower rate is useful only after those costs and the time needed to recover them are understood.
If you expect to sell, check the flat's applicable minimum occupation period and permitted-sale rules separately. Mortgage flexibility does not override HDB ownership restrictions.
Read the refinancing guide →Choose a buyer scenario
Which situation matches your purchase?
These are hypothetical situations, not SHS client stories or personalised recommendations. Open the one closest to the question you are trying to resolve.
RESALE BUYER“We have S$100,000 CPF and S$65,000 cash. Is that enough?”
For the S$650,000 / S$620,000 valuation example, the assumed S$465,000 loan leaves S$185,000 of buyer funding. With S$100,000 eligible CPF, S$85,000 cash is needed under either route. S$65,000 cash leaves a S$20,000 shortfall before the excluded fees and other costs.
A bank's “5% cash” figure does not solve that shortfall. The next conversation is about the confirmed loan, eligible CPF, valuation and full payment schedule. Resolve the funding gap before committing; a slightly lower interest rate does not create completion money.
BTO / NEW-FLAT BUYER“Our CPF is healthy, but key collection is years away.”
The planning problem is the gap between today's eligibility and the household at completion. CPF contributions, income, family spending and bank packages can change. Follow HDB's payment milestones, understand any eligible arrangement, and revisit the loan and cash reserve as key collection approaches.
If comparing bank financing, ask how long the indication is valid and what is required before disbursement. Do not assume today's promotional rate or indicative loan amount will still apply when keys are collected.
BUYER EXPECTING A LUMP SUM“We want to reduce the mortgage when our bonus arrives.”
Put the expected repayment date beside the lock-in and subsidy-clawback dates. For a bank quote, ask for the permitted partial repayment, minimum amount, notice and charge on the sum repaid. A charge can change the benefit of paying early.
For an eligible HDB loan, the absence of an early-repayment penalty may be useful, but repayment procedures and the household's need for cash still matter. Keep enough reserve for the purchase and ongoing expenses before deciding how much to repay.
Before you sign
What to confirm before you sign.
Keep one page for each financing route. Bring the unanswered questions to the lender or discuss them with SHS.
- Confirmed financing
HFE outcome and, for a bank, the actual loan offer. Note the loan amount, tenure and any conditions still to be met.
- Completion funding and reserves
Price, valuation, COV, eligible CPF, cash payments, fees and the money left after each milestone.
- Rate path and repayment range
Initial rate, later formula, reset dates and a higher-rate repayment test on the same amount and tenure.
- Cost over a common holding period
Interest, fees, exit charges, retained subsidies and ending balance. Keep the assumptions with the comparison.
- Exit and partial-repayment terms
Lock-in dates, notice, cancellation, prepayment, repricing and clawback conditions—not just the rate period.
- Your household's limit
What happens if income falls or expenses rise? Decide which cash and OA reserves you need to keep.
Questions that often change the comparison
HDB and bank loan questions
Select a question to expand its answer.
Does a 75% limit mean I will receive a 75% loan?
No. It is the applicable ceiling, not an offer. Income, debt, age, tenure, remaining lease and the lender's assessment can produce a lower amount. Use the confirmed loan in your completion budget.
Can a bank mortgage later return to HDB?
That mortgage cannot be refinanced back to HDB after bank financing. Repricing with the same bank and refinancing to another bank may remain options, subject to terms and assessment. Eligibility for a different flat purchase is a separate question.
Is CPF accrued interest another bank charge?
No. It is the interest the CPF housing money would have earned in CPF and generally forms part of the housing refund on sale. It restores retirement savings. The mortgage lender's interest and fees are separate amounts.
Does a fixed package guarantee the same payment forever?
No. The fixed rate applies for its stated period. Check the rate formula after that period and the loan's reset terms. The lock-in and fixed-rate periods are separate contractual terms.
Can I compare bank loans before my HFE is ready?
You can discuss indicative options, but complete HFE at the required purchase stage and obtain the bank's confirmed offer. An indicative comparison is not permission to commit without the required eligibility and financing documents.
What should I share with SHS first?
Start with new flat or resale, your purchase stage, HFE status and the question you want to resolve. Approximate price, valuation if known and the loan amount can help the comparison. Do not send NRIC images, Singpass credentials or financial documents in the first enquiry.
Discuss your financing
Bring the question.
We’ll help you examine the terms.
Discuss the cash requirement, repayment assumptions or a bank package you are considering. SHS can help you review relevant bank-financing options and the questions to clarify. HDB or the selected lender decides eligibility, loan amount and approval.
WhatsApp · +65 9188 4246
Open the editable message, add your purchase stage and question, then send when ready. Loan rates and terms come from the lender’s current offer.