Updated 19 Sep 2026. The current HDB concessionary loan ceiling is generally 75%, subject to the flat’s lease, your finances and HDB’s assessment. That is a maximum loan-to-value limit, not a promise that HDB will lend three-quarters of any flat you choose.
For a buyer, the practical question is how much remains to be paid from usable CPF and cash, and when those funds are needed. A comfortable monthly instalment cannot solve a shortfall at completion.
Correction: This guide previously used an 80% current loan limit, a fixed-rate description and an incorrect minimum-cash rule. It also contained outdated eligibility thresholds and unsupported grant and repayment examples. These have been replaced with the current HDB rules and the explicitly bounded calculations below.
Start with your HFE letter
Apply for an HDB Flat Eligibility letter before embarking on the purchase. The HFE letter brings together eligibility to buy, CPF housing grants and an HDB loan assessment. An online repayment calculator cannot replace it. HDB’s housing-loan eligibility page sets out the conditions and links the application process.
At least one applicant must be a Singapore citizen. All core family members must not have taken two or more HDB housing loans. This includes the relevant occupiers who enable the household to qualify; it is not simply a fresh personal allocation of two loans for each new owner.
The current average gross monthly household income ceilings shown by HDB are S$16,000 for families, S$24,000 for qualifying extended families and S$8,000 for singles under the Single Singapore Citizen Scheme. The extended-family calculation has its own conditions. These loan ceilings do not establish eligibility for every flat type or grant.
Applicants and occupiers must also satisfy the private-property ownership and disposal conditions, including the 30-month period for an HDB loan following disposal of private residential property. Local and overseas interests can count. Non-residential interests are not automatically irrelevant: disclose them and check HDB’s household conditions. Older buyers, singles and short-lease purchases have additional restrictions. Use the HFE outcome for your household rather than a single income figure as an approval test.
What 75% means for a resale purchase
For a new flat, the maximum is based on the purchase price. For resale, it is based on the lower of the price and HDB’s valuation. The 75% limit applies to complete resale applications received from 20 August 2024 and new-flat applications from the October 2024 sales exercise. Earlier purchases should be assessed under their applicable rules, rather than having their historical financing rewritten.
Full 75% financing also requires the remaining lease to cover the youngest applicant to at least age 95. Where it does not, HDB prorates the limit. The lease must exceed 20 years. Do not substitute a percentage of the original 99-year lease for this age-and-lease test.
| Illustration | Price equals value | Price above value |
|---|---|---|
| Resale price | S$650,000 | S$650,000 |
| HDB valuation | S$650,000 | S$620,000 |
| 75% valuation-based ceiling | S$487,500 | S$465,000 |
| Purchase price outside that ceiling | S$162,500 | S$185,000 |
These are maximum-loan illustrations before HDB’s credit assessment and required use of available CPF. They exclude grants, duties, fees and renovation. The second column’s S$185,000 gap includes S$30,000 above valuation; do not assume all of that gap can be funded by CPF. Obtain the transaction’s payment plan and confirm the cash requirements before exercising the option.
Your actual loan may be smaller
HDB assesses income, age, employment stability, existing commitments, repayment history and cash savings. Monthly instalments may be up to 30% of applicants’ monthly income. HDB computes the eligible loan using the higher of its current 3% assessment floor or the prevailing HDB loan interest rate. That floor is an affordability test, not the rate currently charged or a ceiling on future rates.
The repayment period is the shortest of 25 years, 65 minus the applicants’ average age, or the flat’s remaining lease minus 20 years. A shorter period raises the monthly payment for the same principal. A buyer who can afford a loan over 25 years should not assume that tenure will be available.
For an uncompleted flat, HDB reviews finances again nearer completion. An adverse change can reduce the eventual loan. Avoid committing every spare dollar to renovation while assuming the original financing estimate cannot change.
The rate is 2.6% this quarter, not fixed for the whole loan
HDB’s current interest-rate table states 2.60% a year for 1 July to 30 September 2026. The concessionary rate is pegged 0.1 percentage point above the CPF Ordinary Account rate and reviewed quarterly.
A S$487,500 loan repaid over 25 years would cost approximately S$2,212 a month at 2.6%, or S$2,312 at 3%. These are standard monthly amortisation calculations rounded to the nearest dollar, assuming the respective rate remains unchanged throughout. The 3% comparison explains the assessment floor; neither figure is a personalised loan offer or a rate forecast.
Test the payment against the household budget after childcare, food, transport, insurance and essential savings. If one income stops, decide how many months you can keep paying in cash. The maximum permitted instalment need not be your own spending target.
CPF availability and cash timing are separate checks
HDB allows applicants to retain up to S$20,000 in each CPF Ordinary Account. After permitted uses such as stamp and legal fees, the remaining available OA balance must be used for the purchase before the HDB loan is granted. Choosing an HDB loan therefore does not mean you can retain all your OA money and borrow the maximum instead. Occupiers cannot use their OA savings or housing grant for the purchase or loan servicing.
CPF use is also subject to the relevant lease and usage limits. If those limits are reached, the balance must be paid in cash. Read HDB’s customised financial plan with your actual available OA balances, not the total across all CPF accounts.
For the S$650,000 example, assuming market value does not exceed the price, residential Buyer’s Stamp Duty is S$14,100: S$1,800 on the first S$180,000, S$3,600 on the next S$180,000 and S$8,700 on the remaining S$290,000. The IRAS rate table uses the higher of consideration or market value. This calculation covers BSD only; check whether ABSD, a remission or other purchase-specific costs apply.
Prepare a dated funding list: option money, the remaining purchase contribution, duties, legal fees, insurance, renovation and moving expenses. Mark each payment as cash or eligible CPF and confirm when it is due. Do not treat a grant estimate or expected sale proceeds as money already available in your bank account.
A second HDB loan needs a separate proceeds calculation
HDB requires the applicable CPF refund and part of the cash proceeds from the previous home to be used towards the next purchase. Its general rule allows retention of the higher of S$25,000 or 50% of cash proceeds, including the cash deposit; the remainder is taken into account when determining the second loan. HDB can determine the amount based on ownership arrangements or a court order. The S$20,000 OA retention option still needs to be considered within the applicable rules.
Buying the next HDB flat before disposing of the existing one can initially involve a commercial interest rate. Conversion to the concessionary rate is subject to disposal within six months of legal completion of the new purchase and the required use of CPF refunds and cash proceeds. Ask for the sequencing and payments in writing before promising a seller a completion date.
How to choose between HDB and a bank loan
Compare the approved amount, cash needed, rate structure, repayment flexibility and fees using your actual offers. A lower advertised bank rate is only useful if the total terms suit your finances. Our Singapore mortgage guide explains package comparisons and repayment stress tests.
HDB also requires fire insurance and, where CPF is used for instalments, Home Protection Scheme cover subject to the applicable requirements. Include premiums in the budget. Check what is insured: building-related cover is not the same as cover for your furniture, renovations and belongings.
Sources checked: HDB housing-loan eligibility, assessment, CPF and second-loan conditions; HDB’s July to September 2026 rate table; and IRAS’s current BSD bands, all linked above and checked 19 September 2026. The worked examples are calculations, not actual transactions or household approvals.