HDB flat breakdown
Grants, loans and how much CPF can carry, before you pick a flat.
Curated by the MAS-licensed financial planners on the Sum team.
Grants for first-timers
Housing grants go into your CPF and depend on household income, the flat and who you buy with. The Enhanced CPF Housing Grant is up to S$120,000; for a resale flat, the CPF Housing Grant is up to S$80,000 and the Proximity Housing Grant up to S$30,000.
HDB Flat Portal, with Singpass. The HDB Flat Eligibility letter (HFE) tells you which you get.
HDB loan or bank loan
An HDB loan's rate sits just above the CPF Ordinary Account rate, 2.6% today, and holds steady; a bank's rate moves with the market. Both lend up to 75% of the price. You can move from an HDB loan to a bank later, but not back.
The 30% line
30% of monthly income, the most an HDB instalment can be
An HDB or EC loan's monthly instalment can be at most 30% of gross monthly income (the Mortgage Servicing Ratio). All loans together are capped at 55% (the Total Debt Servicing Ratio).
The downpayment
25% of the price, paid upfront
With an HDB loan the 25% downpayment can come from CPF, cash or both. With a bank loan at least 5% of the price must be cash.
CPF for your flat
Ordinary Account savings can pay the downpayment and the monthly instalments. What you use, plus the interest it would have earned, goes back to your CPF when you sell.
From letter to keys
- HFE letter
- Apply
- Book
- Keys
First the HFE letter, then applying or booking, then keys. A new BTO flat takes years to build; a resale flat takes months.