Total units: 6,952 BTO flats across 7 projects, offered for sale from 17 to 24 June 2026.
Locations: Ang Mo Kio, Bishan (Lakeview and Shunfu), Bukit Merah, Sembawang, and Woodlands.
Historic first: The Bishan projects mark the first new public housing in the Lakeview and Shunfu neighbourhoods in over 40 years, located near Marymount MRT Station on the Circle Line.
Shorter Waiting Time (SWT): 2,520 units in Sembawang have wait times of two to three years — well below the typical four to five year BTO wait.
Classification: Approximately half the units fall under Plus or Prime categories, carrying resale restrictions (Minimum Occupation Period of 10 years, no subletting whole flat for Prime) and income ceilings.
Application window: 17 June to 24 June 2026. Apply via the HDB Flat Portal at flat.hdb.gov.sg using your HDB Flat Eligibility (HFE) letter.
Overview: HDB BTO June 2026 Sales Exercise
The Housing & Development Board (HDB) launched 6,952 Build-To-Order (BTO) flats on 17 June 2026, spread across seven projects in five towns. The June 2026 exercise is one of the larger BTO launches of the year and introduces supply in several significant locations — most notably Bishan, where no new HDB flats have been offered in nearly four decades.
The BTO programme remains the primary route to homeownership for Singapore Citizens and Permanent Residents who meet the eligibility criteria. Under the Enhanced Contra Facility introduced in 2024, buyers who are concurrently selling an existing flat can now proceed with their BTO purchase even before completing the sale, reducing the need to source bridge financing.
All 7 Projects at a Glance
Figure 1: HDB BTO June 2026 — Unit Count by Project (Total: 6,952 Units)
Project
Town
Units
Wait Time
Classification
Flat Types
Sembawang Portico
Sembawang
875
~2yr 7mths (SWT)
Standard
2-Rm Flexi, 3-Rm, 4-Rm, 5-Rm
Sembawang Brook
Sembawang
1,160
~2yr 9mths (SWT)
Standard
3-Rm, 4-Rm, 5-Rm, 3Gen
Lakeview / Shunfu Project
Bishan
1,210
~4yr 6mths
Plus
3-Rm, 4-Rm, 5-Rm
Ang Mo Kio Project
Ang Mo Kio
950
~4yr 8mths
Plus
2-Rm Flexi, 3-Rm, 4-Rm, 5-Rm
Bukit Merah Project
Bukit Merah
618
~4yr 4mths
Prime
2-Rm Flexi, 3-Rm, 4-Rm
Woodlands Project A
Woodlands
987
~3yr 8mths
Standard
2-Rm Flexi, 3-Rm, 4-Rm, 5-Rm
Woodlands Project B
Woodlands
1,152
~3yr 10mths
Standard
3-Rm, 4-Rm, 5-Rm
The Bishan First: Lakeview and Shunfu After 40 Years
The most historically significant aspect of the June 2026 BTO launch is the Bishan project. Bishan’s Lakeview and Shunfu estates have not seen new public housing construction since 1984 — over 40 years. The new development, located near Marymount MRT Station (Circle Line), will offer 1,210 units of 3-room, 4-room, and 5-room flats under the Plus classification. This means buyers will face a 10-year Minimum Occupation Period (MOP) before the flats can be sold on the open market, and subletting the whole flat is prohibited within the first 10 years.
Bishan commands a premium among HDB towns — its central location, mature estate amenities, and proximity to Bishan-Ang Mo Kio Park make it perennially oversubscribed. The Plus classification is designed to limit immediate speculative demand while ensuring long-term community stability. Buyers attracted by the location must carefully weigh the extended MOP against their medium-term plans.
The two Sembawang projects — Sembawang Portico (875 units) and Sembawang Brook (1,160 units) — are flagship Shorter Waiting Time (SWT) launches. Sembawang Portico has a projected wait time of approximately two years and seven months from application to key collection; Sembawang Brook comes in at two years and nine months. Both projects are Standard classification, carrying a five-year MOP and no income ceiling restrictions beyond the standard HDB eligibility rules.
Sembawang Brook is notable for including 3Gen flats — purpose-designed multi-generational units that allow parents and married children to live in the same flat with some degree of spatial separation. The 3Gen flat type has a separate application queue for eligible multi-generational families.
Plus and Prime Classification: What Buyers Need to Know
Figure 2: June 2026 BTO — Unit Breakdown by Flat Classification (Standard / Plus / Prime)
Approximately half of all units offered in the June 2026 exercise are Plus or Prime. The HDB Classification Framework, introduced in October 2023, replaced the former Mature/Non-Mature estate distinction with three tiers based on locational advantage and subsidy level. Here is a quick reference:
Classification
MOP
Whole-flat subletting
Resale restrictions
Subsidy clawback on resale
Standard
5 years
Allowed after MOP
Open market after MOP
None
Plus
10 years
Not allowed (within 10yr)
Only to Singapore Citizens (eligible buyers) within MOP
Clawback applies for 10 years
Prime
10 years
Not allowed (within 10yr)
Stricter — buyers must meet income ceiling; clawback applies
Clawback applies for 10 years
Buyers of Plus and Prime flats receive a higher subsidy upfront, but HDB claws back a portion of that subsidy when the flat is subsequently resold within the 10-year window. The clawback is calculated as a percentage of the resale price at the time of sale. This mechanism is designed to ensure the subsidised housing stays affordable for subsequent buyers rather than locking in excessive gains for the first owner.
Frequently Asked Questions: HDB BTO June 2026
How do I apply for the June 2026 BTO exercise?
Applications for the June 2026 BTO exercise are open from 17 to 24 June 2026 via the HDB Flat Portal at flat.hdb.gov.sg. You must have a valid HDB Flat Eligibility (HFE) letter before applying — this is obtained via Singpass and assesses your eligibility (citizenship, income ceiling, ownership restrictions). You can apply for up to two projects per exercise. The application is non-binding; you pay S$10 per application, refundable if you are not selected or choose not to proceed.
What is the income ceiling for BTO flats?
For Standard and Plus BTO flats (2-room Flexi to 5-room), the gross monthly household income ceiling is S$14,000 for families and S$7,000 for singles applying under the Single Singapore Citizen scheme. For Prime classification flats and 3Gen flats, a lower income ceiling of S$12,000 applies for families. These income ceilings are assessed using the average gross monthly income over the 12 months preceding the application. Bonus income (e.g., annual variable component) is included in the assessment.
What priority schemes are available for June 2026 applicants?
HDB offers several priority schemes that improve your chances of being balloted: the Married Child Priority Scheme (MCPS, for applicants living near parents or vice versa); the Multi-Generation Priority Scheme (MGPS, for three-generation families applying together); the Third Child Priority Scheme (TCPS, for applicants with three or more children); the Assistance Scheme for Second-Timers (ASSIST, for second-timers affected by divorce or widowhood); and the Senior Priority Scheme (SPS, for applicants aged 55+ applying for 2-room Flexi). First-timer families continue to receive priority balloting over second-timers in all exercises.
Are the Sembawang SWT flats worth considering if I want to be near the MRT?
Sembawang Portico and Sembawang Brook are located near Sembawang MRT (North-South Line) and the upcoming Canberra MRT (also NSL, opened 2019), providing direct access to the city via Orchard and Raffles Place. While Sembawang is a northern estate without the central cachet of Bishan or Bukit Merah, the SWT advantage — keys in under three years — is a significant quality-of-life benefit for buyers who do not want a long wait. The Standard classification also means no resale restrictions beyond the standard 5-year MOP and no subsidy clawback, giving buyers full flexibility after MOP.
When is the next BTO launch expected?
HDB typically holds BTO sales exercises in February, June, and October each year, with an occasional smaller exercise in between. The next major exercise is expected in October 2026. HDB also announced plans in 2025 to introduce sites in newer growth areas including Tengah, Bidadari, and Bayshore in upcoming exercises. Applications and updates are published on the HDB website at hdb.gov.sg and the MyNiceHome portal at mynicehome.gov.sg.
Disclaimer: Unit counts, project names, wait times, and classification details in this article are based on HDB’s official June 2026 BTO exercise announcement published at hdb.gov.sg. Some project-level figures (e.g., Woodlands sub-project breakdown) are estimates. Always verify all details directly with HDB at hdb.gov.sg or via the HDB Flat Portal before applying. Eligibility rules, income ceilings, and subsidy clawback percentages are subject to change at HDB’s discretion.
Benchmark rate: 3-Month Compounded SORA has fallen from a ~3.5% peak in mid-2024 to ~1.07% in June 2026, the sharpest rate drop since the 2020 pandemic era.
Best rates now: Bank fixed rates start at 1.35–1.40% p.a. for private property; SORA-pegged floating rates begin at ~1.27% p.a. (3M SORA + 0.20%). HDB Concessionary Loan remains at 2.60%.
LTV limits: 75% for a first private property bank loan; 80% for an HDB Concessionary Loan. MAS stress-tests TDSR at 4% p.a. regardless of actual rate.
Fixed vs floating: Fixed rates offer certainty for 1–3 years; floating (SORA) packages could cost less now but carry rate-reset risk. Most analysts forecast SORA at 0.7%–1.2% through 2026.
Repricing vs refinancing: Repricing (same bank) is cheaper but offers fewer options; refinancing (new bank) takes longer but can yield better rates and cashback offers.
TDSR and MSR: Total Debt Servicing Ratio capped at 55% of gross income. Mortgage Servicing Ratio capped at 30% for HDB flat purchases. Both are regulated by MAS.
How Singapore Property Mortgages Work
A property mortgage in Singapore is a secured loan where the property itself serves as collateral. When you take a bank mortgage, the bank registers a legal charge over the property via the Singapore Land Authority (SLA). If you default, the bank has the right to repossess and sell the property to recover the outstanding loan.
The Monetary Authority of Singapore (MAS) regulates mortgage lending through Notices MAS 632 (banks) and MAS 1115 (finance companies). Key parameters include the Loan-to-Value (LTV) ratio, Total Debt Servicing Ratio (TDSR), and Mortgage Servicing Ratio (MSR). These rules apply to all financial institutions licensed to offer mortgage products in Singapore, ensuring borrowers are not over-leveraged.
The HDB Concessionary Loan is a separate product offered by the Housing & Development Board at a fixed rate of 2.60% per annum (0.1 percentage points above the CPF OA rate, currently 2.5%). It is available only for HDB flat purchases by eligible applicants and carries a higher LTV ceiling of 80% but is limited to HDB resale and BTO flats.
Singapore Mortgage Rates in June 2026
Figure 1: Singapore Mortgage Rates (June 2026) and Monthly Repayments by Loan Size — HDB Loan vs Fixed Rate vs SORA Floating
Loan Type
Rate (June 2026)
Lock-In
Monthly on S$800K / 30yr
Best For
HDB Concessionary Loan
2.60% p.a. (fixed)
None
S$3,218 / mth
HDB flat buyers who want certainty
Bank Fixed (2-year)
1.35–1.40% p.a.
2 years
S$2,666 / mth
Buyers wanting rate certainty for 2 years
Bank Fixed (3-year)
1.50–1.60% p.a.
3 years
S$2,757 / mth
Buyers wanting longer-term certainty
SORA Floating (3M+0.20%)
~1.27% p.a. now
None or 1–2yr
~S$2,617 / mth
Buyers comfortable with rate movement
Board Rate (legacy)
~2.10% p.a.
Varies
S$2,996 / mth
Avoid — opaque and usually uncompetitive
Rates sourced from published bank rate sheets and PropertyNet.sg (week of 15 June 2026). Monthly repayments calculated at 30-year tenure for illustration. Actual rates vary by loan quantum, LTV, and bank assessment. HDB Concessionary Loan calculated at 25 years as it is unavailable beyond that tenure.
SORA: Singapore’s Mortgage Benchmark Explained
SORA — the Singapore Overnight Rate Average — replaced the Singapore Interbank Offered Rate (SIBOR) and Swap Offer Rate (SOR) as the primary interest rate benchmark for Singapore-dollar financial products. The transition was completed in 2021 under MAS guidance. SORA is a backward-looking rate: it is calculated daily as the volume-weighted average rate of unsecured overnight transactions in the Singapore wholesale interbank market, published each business day by MAS.
For mortgages, banks typically use either the 1-Month Compounded SORA (1M SORA, currently ~1.16%) or the 3-Month Compounded SORA (3M SORA, currently ~1.07%) as the reference rate, to which they add a fixed bank spread (typically 0.20%–0.80%). Your effective rate resets monthly or quarterly depending on the package. Unlike SOR, SORA has no embedded credit or liquidity risk premium, making it more stable.
Figure 2: 3-Month Compounded SORA — Rise and Fall from 2022 to Q2 2026 (Source: MAS)
The 3M Compounded SORA peaked at approximately 3.52% in Q1–Q2 2024 as the US Federal Reserve held rates at 40-year highs. From mid-2024 through 2025, the US Fed began cutting rates, Singapore rates followed, and by June 2026 the 3M SORA has settled at ~1.07% — a 68% reduction from its peak. Industry analysts forecast 3M SORA to remain in the 0.7%–1.2% band through end-2026, barring unforeseen macroeconomic shocks.
Fixed vs Floating: How to Decide
The right choice depends on your risk tolerance, your mortgage tenure, and your view on rates. Consider these factors:
Choose a fixed rate if: you are on a tight budget and need payment certainty; you are buying with a co-borrower and want to avoid any surprises; your TDSR is near the 55% cap; or you are buying a new launch with a long construction period and want to lock in today’s rates now.
Choose a SORA floating rate if: SORA is at a cyclical low and you believe rates will not rise significantly; you have a financial buffer to absorb higher instalments; your loan tenure is short (under 15 years); or you plan to refinance or sell within the lock-in period and want the flexibility of a nil or short lock-in.
In June 2026, with 3M SORA at ~1.07% and fixed rates starting at 1.35%, floating packages are marginally cheaper now. However, the fixed-floating spread is only about 0.10%–0.30%. On an S$800,000 loan, that difference is approximately S$400–S$800 per year — modest relative to the certainty fixed provides. Most financial advisers recommend fixing for at least two years to ride out any near-term uncertainty.
LTV Limits and Downpayment Requirements
Scenario
Maximum LTV
Minimum Downpayment
Cash Portion
First bank loan, no outstanding loans
75%
25% (5% cash + 20% cash/CPF)
5% minimum
Second bank loan (1 existing loan)
45%
55% (25% cash + 30% cash/CPF)
25% minimum
Third+ bank loan (2+ existing loans)
35%
65% (25% cash + 40% cash/CPF)
25% minimum
HDB Concessionary Loan (HDB flat)
80%
20% (cash or CPF)
No minimum cash
These LTV limits assume the loan tenure does not extend beyond the borrower’s 65th birthday, and that no property loan remains outstanding on the HDB flat being sold (in the case of upgraders). Buyers who have not yet sold their existing property before taking a new mortgage fall under the higher LTV tier temporarily.
Repricing vs Refinancing: Choosing at Lock-In Expiry
Figure 3: Repricing vs Refinancing — Key Differences and When to Choose Each
When your mortgage lock-in period expires — typically after one to three years — you face two choices: reprice with your current bank (switch to a new package, fee ~S$300–S$800, no legal process) or refinance to a new bank (full legal process, fees S$2,000–S$3,500, but potentially better rates and cashback incentives). The break-even analysis is straightforward: if the annual saving from switching rates exceeds the legal and admin costs, refinancing makes financial sense. On an S$800,000 loan, a 0.30% rate improvement saves approximately S$2,400 per year — enough to cover legal fees in 1–2 years.
Banks competing for refinancing customers often offer cashback of S$1,000–S$3,000 or fee absorption on legal and valuation costs. These incentives effectively lower the refinancing break-even to under six months in many cases. Re-assess your mortgage every time your lock-in expires, or at least every two to three years.
Worked Example: Ng Family Refinancing in 2026
Mr and Mrs Ng bought their Bishan condo in 2022 for S$1,450,000 with a bank mortgage of S$1,087,500 at a fixed rate of 1.80% for two years, which rolled onto SORA + 0.50% in early 2024 (peak SORA ~3.52%, effective rate ~4.02%). Their monthly instalment jumped from S$3,930 to S$5,191. Their lock-in expired in March 2026.
Scenario
Rate
Monthly Instalment
Annual Cost
Current (SORA+0.50%, board revert)
~1.57% now (was 4.02%)
S$3,523/mth
S$42,276
Reprice with same bank (new 2-yr fixed)
1.40%
S$3,418/mth
S$41,016
Refinance to new bank (2-yr fixed + S$2K cashback)
1.35%
S$3,386/mth
S$40,632 (–legal+cashback)
Outstanding loan (March 2026): approximately S$958,000 (after ~4 years of repayments). By refinancing to the best market rate of 1.35% with a S$2,000 cashback, the Ngs save approximately S$1,640 per year versus repricing, and approximately S$1,644 per year versus staying on the current revert rate. Legal fees of S$2,800 are covered in approximately 1.5 years of savings. The Ngs choose to refinance. Total saving over the 2-year fixed period: approximately S$3,300 net of costs.
Why This Matters in Singapore’s 2026 Rate Environment
The SORA rate cycle of 2022–2026 was a defining event for Singapore property owners. Mortgage costs more than doubled between mid-2022 and mid-2024, squeezing affordability and prompting a wave of careful cash-flow planning. The subsequent easing — SORA back to 2022-era lows — has provided significant relief. For buyers entering the market in mid-2026, current rates represent one of the most favourable financing windows since the post-COVID era.
MAS continues to use macroprudential tools (LTV limits, TDSR, ABSD) rather than interest rate policy to manage property market risks. This means Singapore mortgage rates are largely driven by global rates — primarily the US Federal Reserve’s policy — rather than local inflation alone. With the Fed expected to hold or cut modestly through 2026, analysts broadly expect 3M SORA to stay below 1.5% for the remainder of the year.
What Might Come Next for Singapore Mortgage Rates
The consensus among local bank economists is that SORA will remain in the 0.7%–1.2% band through end-2026, with the next potential increase contingent on any unexpected re-acceleration of US inflation or a significant weakening of the Singapore dollar. If the Fed were to hike rates again in response to a fresh inflationary episode, SORA could rise back toward 2%–2.5% within six to twelve months. Buyers on floating SORA packages should maintain a financial buffer equal to at least three to six months of mortgage instalments to absorb any rate shock. For those on fixed packages, the certainty is already baked in — focus on planning for the re-pricing at lock-in expiry.
Yes, but the switch is a one-way door. Once you refinance an HDB Concessionary Loan to a bank mortgage, you cannot switch back to the HDB loan. Before making this move, compare the total interest cost over your remaining tenure carefully. The HDB loan at 2.60% is currently above the best bank rates of 1.35–1.40%, but it comes with no lock-in period, allows you to use CPF OA freely, and does not require a legal process or valuation. For smaller loan balances in later stages of the mortgage, the cost saving from switching may not justify the hassle and loss of flexibility.
What is the TDSR and how is it calculated?
The Total Debt Servicing Ratio (TDSR) is a MAS regulatory framework that caps all monthly debt obligations — including mortgage, car loan, personal loan, and credit card minimums — at 55% of gross monthly income. For a joint purchase, the combined income is used. Banks must stress-test the TDSR at a floor rate of 4% per annum (or the actual contracted rate, whichever is higher) when calculating the maximum loan quantum. This means even if you can access a 1.27% SORA mortgage today, the bank models your repayment capacity at 4%, ensuring you remain serviceable if rates rise.
Can I use CPF to pay my monthly mortgage?
Yes. CPF Ordinary Account (OA) funds can be used to service monthly mortgage instalments on private property and HDB flats, subject to the Valuation Limit (VL) and Withdrawal Limit (WL) rules. Once your cumulative CPF withdrawals reach the Valuation Limit (100% of the lower of purchase price or bank valuation), you must set aside the Basic Retirement Sum (BRS) before withdrawing further. Beyond the Withdrawal Limit (120% of the VL), CPF withdrawals are stopped entirely. Accrued interest at 2.5% p.a. on all CPF drawn must be refunded on eventual sale.
What is a lock-in period and what happens if I break it early?
A lock-in period is a contractual commitment to keep your mortgage with the same bank for a specified duration — typically one to three years. If you refinance, fully repay, or make significant partial prepayments (usually above 10–20% of the outstanding balance) within the lock-in, the bank charges a prepayment penalty of approximately 1.0%–1.5% of the amount repaid. Always read the mortgage letter carefully. For a S$1,000,000 loan, a 1.5% penalty represents S$15,000 — a significant cost that can erode any rate savings from early refinancing.
Should I take a longer or shorter loan tenure?
A longer tenure (e.g., 30 years) lowers your monthly instalment and improves TDSR headroom, but results in substantially more interest paid over the life of the loan. A shorter tenure means higher monthly payments but lower total interest cost and faster equity build-up. The optimal tenure depends on your cash flow needs, retirement timeline, and opportunity cost of capital. If you have surplus savings earning more than 1.35% (e.g., in Singapore Savings Bonds or T-bills), there may be limited benefit to over-paying the mortgage. Conversely, if you are paying high-interest credit card debt, that should be retired first.
How often can I refinance my mortgage?
There is no regulatory limit on how often you can refinance, but practically, you should refinance at each lock-in expiry to avoid penalties and maximise savings. Most borrowers refinance every two to three years. Frequent refinancing to exploit small rate differences is rarely economical once legal fees and admin costs are accounted for — the minimum rate saving worth refinancing for is typically 0.25%–0.30% per annum on a loan of S$500,000 or above. Always calculate the break-even period before committing to a new lender.
What is the MSR and when does it apply?
The Mortgage Servicing Ratio (MSR) is a tighter constraint that applies specifically to HDB flat purchases and Executive Condominium (EC) purchases (during the initial launch phase). MSR caps the monthly mortgage instalment at 30% of gross monthly income — stricter than the 55% TDSR cap. MSR applies to the mortgage for the HDB flat or EC only; other debt obligations are captured under TDSR. For a household with S$10,000 gross income, MSR limits the HDB mortgage instalment to S$3,000/month, which at 2.60% over 25 years equates to a maximum loan of approximately S$667,000.
Disclaimer: This article is for general informational purposes only and does not constitute financial or mortgage advice. Interest rates are indicative only and change daily. Always obtain formal mortgage advice from a licensed mortgage broker or banker, and verify current rates and MAS regulatory requirements at mas.gov.sg. CPF usage rules are governed by the CPF Board at cpf.gov.sg. Stamp duty obligations should be confirmed with IRAS at iras.gov.sg before committing to any property purchase.
No MOP required — you can rent out a room in your HDB flat immediately after taking possession; the Minimum Occupation Period applies only to whole-flat subletting.
HDB portal approval is required before any tenancy starts, including room rentals to non-citizens.
Non-Citizen Quota (NCQ): only 8% of flats in a neighbourhood and 11% in any block may house non-citizen, non-Malaysian tenants at any one time.
Malaysian citizens are NCQ-exempt — they may rent from any eligible HDB flat owner regardless of the quota.
Minimum tenancy is 6 months; maximum is 2 years per tenancy agreement (renewable).
Maximum occupancy for a 4-room or larger flat is 6 unrelated persons across all rooms.
All rental income is taxable under the Income Tax Act 1947; deductible expenses include mortgage interest, property tax, and maintenance fees.
IRAS filing deadline is 15 April each year for the preceding year’s rental income.
What Is HDB Room Rental and Who Administers It?
Renting out a room in your Housing Development Board (HDB) flat is one of the most tax-efficient ways to generate supplementary income in Singapore. Unlike renting out the entire flat — which requires the flat to have cleared its Minimum Occupation Period (MOP) — room rental has no MOP prerequisite. You can begin renting a spare bedroom the day after you collect your keys, provided you register the tenancy through the HDB e-Service portal and comply with the occupancy and quota rules administered by HDB.
HDB oversees room rental under the Housing and Development Act 1959 (Cap 129) and associated policies. The Inland Revenue Authority of Singapore (IRAS) governs the tax treatment of rental income under the Income Tax Act 1947. Both agencies updated their guidelines in 2024–2025; this guide reflects the rules as at June 2026.
Room rental is distinct from whole-flat subletting, which requires MOP clearance and a distinct approval process. For subletting of the entire flat, refer to our HDB Subletting Guide 2026.
Figure 1: HDB room rental eligibility and tenant rules across citizenship categories — including the NCQ.
HDB Room Rental Eligibility Rules
To rent out a room in your HDB flat, you must be a registered owner who satisfies all of the following conditions:
Flat ownership: You must be a registered owner of the flat (joint or sole). Tenants of HDB flats cannot sublet rooms.
Residency: At least one owner must continue to reside in the flat during the rental period. You cannot rent out all bedrooms and vacate — that constitutes whole-flat subletting and requires separate approval.
No MOP restriction for room rental: Unlike whole-flat subletting, there is no MOP period to serve before renting a room. This applies to BTO, resale, and DBSS flats.
Citizen/PR ownership: Only Singapore Citizens and Singapore Permanent Residents may own HDB flats.
Who Can Be Your Tenant?
Eligible tenants include Singapore Citizens, Singapore Permanent Residents, and non-citizens holding long-term passes such as Employment Passes (EP), S Passes, Work Permits (WP), Long-Term Visit Passes (LTVP), Student Passes, and Dependent’s Passes. Short-term visitors and tourists are not eligible. Non-citizens are subject to the Non-Citizen Quota (NCQ) — with the important exception that Malaysian citizens are NCQ-exempt.
Before commencing any tenancy with a non-citizen tenant, verify that NCQ slots are available for your block and neighbourhood, then register the tenancy on the HDB e-Service portal. Tenancies with Citizens and PRs do not require quota checks but must still be registered.
The Non-Citizen Quota (NCQ): How It Works
Figure 2: The NCQ caps — 8% neighbourhood, 11% block — apply to all non-citizen, non-Malaysian tenants in HDB room rentals.
The Non-Citizen Quota was introduced by HDB to maintain social integration in public housing estates and prevent over-concentration of foreign nationals in any single block or neighbourhood. Under the NCQ:
No more than 8% of all HDB flats in a neighbourhood may be occupied by non-citizen, non-Malaysian tenants at the same time.
No more than 11% of all HDB flats in any single block may be occupied by non-citizen, non-Malaysian tenants at the same time.
If either limit is reached, no new tenancy with a non-citizen, non-Malaysian tenant may commence in that neighbourhood or block until an existing occupancy clears. Malaysian citizens are entirely exempt from the NCQ. You can check real-time NCQ availability using the HDB NCQ portal.
Tenancy Duration and Registration
Each room rental tenancy must have a minimum duration of 6 months and a maximum of 2 years per agreement. Tenancies of less than 6 months — including Airbnb-style arrangements — are strictly prohibited and may result in compounding or flat confiscation. Registration is completed online via the HDB e-Service portal within 7 days of the tenancy start date.
Maximum Occupancy Limits
Flat Type
Max. Occupants (All Rooms Combined)
Notes
1-Room / 2-Room
4 unrelated persons
Including the flat owner(s)
3-Room
6 unrelated persons
Including the flat owner(s)
4-Room and above
6 unrelated persons
Including the flat owner(s)
Executive / DBSS
6 unrelated persons
Including the flat owner(s)
Studio Apartment
Not eligible for room rental
Intended for elderly residents only
The occupancy cap includes the flat owner(s) and all residents. A 4-room flat with two owner-occupiers can therefore accommodate at most 4 additional persons as tenants across all rooms.
Rental Income Tax: What You Must Declare to IRAS
All rental income from HDB room rental is assessable income under the Income Tax Act 1947 administered by IRAS. There are no exemptions for small amounts or casual arrangements. IRAS allows a range of deductible expenses that significantly reduce your net taxable rental income.
Figure 3: Gross rental income versus allowable deductibles and the net taxable position at three common rent levels.
What Is Taxable?
Your gross rental income includes all amounts received from tenants: monthly rent, any lump-sum advance payment, and reimbursements for utilities or services. Security deposits are not income when received but become income if forfeited.
Allowable Deductions
Deductible Expense
Basis
Notes
Mortgage interest
Actual interest portion of HDB or bank loan payments
Principal repayment is NOT deductible
Property tax
Annual property tax paid to IRAS
Deductible in full as a cost of letting
Maintenance and conservancy charges
Monthly S&CC paid to Town Council
Pro-rated to rental period if flat was partly vacant
Repairs and maintenance
Revenue repairs to restore lettable condition
Capital improvements are NOT deductible
Insurance premiums
Fire/content insurance attributable to the rental
Home Protection Scheme premiums are NOT deductible
Agent commission
Fees to a licensed estate agent for securing the tenancy
Deductible in full in the year paid
The net rental income is added to your other income and taxed at Singapore’s progressive personal income tax rates (0% on the first S$20,000 of chargeable income, up to 24% above S$1,000,000 effective from YA 2024).
When and How to File
Rental income must be declared annually in your income tax return via IRAS’s myTax Portal. The filing deadline is 15 April of the following year. Retain receipts and tenancy agreements for at least 5 years as IRAS may audit rental declarations.
Worked Example: The Tan Family, Tampines 4-Room
Mr and Mrs Tan are Singapore Citizens who own a 4-room HDB flat in Tampines. They have one spare room and decide to rent it to a Malaysian work-pass holder at S$1,500 per month from 1 April 2026.
Step 1 — Eligibility: No MOP required. NCQ check: Malaysian citizens are NCQ-exempt. HDB portal registration completed 29 March 2026.
Income calculation (Year of Assessment 2027, calendar year 2026):
Net taxable rental income: S$13,500 minus S$7,344 = S$6,156
Tax impact: Mr Tan earns S$72,000/yr. Adding S$6,156 raises chargeable income to approximately S$78,156. Marginal rate: 7% (S$40K–S$80K band). Incremental tax: approximately S$431. Net monthly cash after all costs and taxes: approximately S$1,014/month.
Why HDB Room Rental Matters for Flat Owners
Singapore has one of the highest rates of homeownership in the world — roughly 90% of residents live in public housing. Room rental offers a way to monetise a spare bedroom without the complexity of selling or refinancing. Industry figures show median room rents ranging from S$900/month in non-mature estates to S$2,200/month in central areas as at early 2026. With Singapore’s economy drawing a continued influx of international professionals, demand for affordable HDB rooms is expected to remain resilient.
For retirees, room rental income can supplement CPF LIFE payouts and reduce dependence on drawing down CPF savings. The Silver Housing Bonus (SHB) scheme, administered by HDB, provides additional cash bonuses of up to S$30,000 for elderly flat owners who right-size to smaller flats.
What Might Come Next: Future Policy Considerations
This section is editorial speculation and does not constitute confirmed government policy.
Short-term rental platforms such as Airbnb remain prohibited in HDB flats, and HDB is expected to continue enforcing this restriction. IRAS is rolling out auto-assessment for rental income by 2027, cross-checking declared rental income against HDB portal tenancy registrations. Flat owners who have not been filing rental income should consider voluntary disclosure via IRAS’s myTax Portal before automated enforcement begins. The NCQ thresholds of 8% and 11% have remained unchanged since 2012 and selective adjustments in newer estates with lower foreign-national density remain a possibility, though no change has been signalled as at June 2026.
Frequently Asked Questions
Can I rent out my HDB room before completing the Minimum Occupation Period?
Yes. The MOP restriction applies only to renting out the entire flat (whole-flat subletting), not to individual rooms. Room rental may commence immediately after the flat is handed over to you, subject to HDB portal registration and compliance with tenant eligibility and NCQ rules. If you are in the MOP period, you must continue to reside in the flat.
My block’s Non-Citizen Quota is full. Can I still rent to my Malaysian colleague?
Yes. Malaysian citizens are entirely exempt from the Non-Citizen Quota. The NCQ applies only to non-citizens who are not Malaysian. Your Malaysian colleague does not count toward the 8% neighbourhood or 11% block quota regardless of the pass type they hold. You can proceed with registration on the HDB portal without a quota check for Malaysian tenants.
Does HDB rental income affect my CPF contributions?
No. Rental income from HDB room rental is not employment income and is not subject to CPF contributions. It is, however, assessable income under the Income Tax Act and must be declared to IRAS. CPF voluntary top-up contributions remain available regardless of whether you earn rental income.
What happens if I rent out my room without registering on the HDB portal?
Renting out a room without HDB portal registration is a breach of the HDB lease. Consequences include a formal warning and compounding fine of up to S$5,000 per breach. Repeated or serious violations can result in HDB compulsorily acquiring the flat at HDB’s assessed valuation, which may be below open-market value. HDB conducts enforcement raids and acts on complaints from neighbours and town councils.
Can I deduct renovation costs or furniture purchases against rental income?
Generally, no. IRAS distinguishes between capital expenditure (acquiring or improving an asset) and revenue expenditure (maintaining the asset in its existing condition). Only revenue repairs are deductible. Furniture purchases are capital in nature and are not deductible. For specific situations, seek advice from a qualified tax practitioner or consult IRAS’s e-Tax Guide on rental income at iras.gov.sg.
How do I calculate the deductible mortgage interest for a joint HDB loan?
For an HDB concessionary loan, your annual statement from HDB shows the principal and interest breakdown for each repayment. Add up the interest components paid during the calendar year — this is your deductible amount. For a bank loan, your bank provides an annual loan statement. If you jointly own the flat, each co-owner may only deduct interest in proportion to their ownership share.
Can I rent a room to a family member who is a foreigner?
Yes, provided the family member holds an eligible pass (EP, S Pass, WP, LTVP, DP, Student Pass) and the NCQ is not exhausted for your block and neighbourhood (unless the family member is Malaysian). You still need to register the tenancy on the HDB portal. Close family ties do not create any exemption from HDB’s room rental registration requirements, though there is no restriction on the commercial terms of the tenancy.
This article is produced by the LovelyHomes Editorial Team for general information purposes only. It is not legal, tax, or financial advice. HDB rules and IRAS tax regulations are updated periodically; always verify current requirements on hdb.gov.sg and iras.gov.sg before entering into any tenancy agreement. For personalised tax advice, consult a qualified tax practitioner.
CPF accrued interest is the interest your CPF Ordinary Account (OA) would have earned had you not withdrawn the funds to buy property — currently 2.5% per annum.
When you sell your property, the CPF Board requires you to refund both the principal withdrawn and the full accrued interest back to your CPF OA — not to your bank account.
This reduces your net cash proceeds from the sale. A S$200,000 CPF draw held for 15 years accrues approximately S$84,600 in interest that must be returned to CPF.
The Valuation Limit (VL) caps total CPF usage at the lower of the property’s purchase price or current market value. A separate Withdrawal Limit (WL) may apply based on lease coverage to age 95.
Since September 2019, most buyers must set aside the Basic Retirement Sum (BRS — S$106,500 in 2026) before drawing CPF OA above the Valuation Limit.
CPF accrued interest exists to protect retirement adequacy: it ensures property investment does not permanently erode your retirement savings.
The refunded amount goes straight back into your CPF OA at 2.5%, where it continues compounding for retirement.
What Is CPF Accrued Interest?
Every Singaporean or Permanent Resident who uses Central Provident Fund (CPF) monies to buy property faces a concept that surprises many first-time sellers: accrued interest. The CPF Board does not charge you interest while you hold the property — but when you eventually sell, it expects the full opportunity cost of having used those retirement savings to be returned.
In plain terms, accrued interest is the amount your CPF OA would have grown at 2.5% per annum had you never withdrawn the funds. The Board administers this under the Central Provident Fund Act (Cap 36) and the associated CPF (Investment Schemes) Regulations. The policy exists for a straightforward reason: Singapore’s CPF is a compulsory retirement savings system. If property buyers could permanently deplete their OA without consequence, many Singaporeans would reach 65 with inadequate retirement savings.
The 2.5% floor rate has applied to CPF OA since January 2008 and is reviewed quarterly. As of the April–June 2026 quarter, the OA rate remains at 2.5% per annum. An additional 1% interest is earned on the first S$60,000 of combined CPF balances (capped at S$20,000 from OA), but this extra 1% does not apply to the CPF property withdrawal for accrued interest calculation purposes — only the base 2.5% accrues on property funds.
How Accrued Interest Is Calculated
The calculation is straightforward compound interest. For each CPF withdrawal used for property, accrued interest accumulates from the day of each payment until the date the funds are returned to CPF on sale or redemption:
Accrued Interest = Principal × ((1.025)n − 1) where n = number of years since the withdrawal
In practice, most buyers make multiple CPF withdrawals over the loan tenure — each monthly CPF mortgage payment starts accruing interest from its withdrawal date. The total accrued interest is the sum across all individual withdrawals. The CPF Board’s My CPF portal provides a real-time running total under “Property” → “CPF Usage for Property.”
As an illustration, consider a buyer who drew S$150,000 from CPF at purchase and continued monthly payments of S$2,000 over 10 years. After 10 years, the initial S$150,000 would have accrued approximately S$40,900 in interest, while the monthly payments would each carry their own accrued interest based on how long ago they were drawn. The total CPF refund on sale would be well in excess of the S$174,000 principal drawn.
Figure 1: Accrued interest accumulation at 2.5% p.a. for four CPF principal amounts over 25 years. A S$300,000 CPF draw held for 20 years generates S$187,400 in accrued interest that must be returned to CPF on sale.
The Valuation Limit and Withdrawal Limit
Two separate caps govern how much CPF you can use on a property purchase. Understanding both prevents unpleasant surprises — particularly for buyers of older or shorter-lease properties.
Valuation Limit (VL)
The Valuation Limit is the lower of the purchase price or the property’s market value at the time of purchase. You may not use more CPF OA funds on the property than the VL, unless your combined CPF OA and Special Account balances meet or exceed the Full Retirement Sum (FRS — S$213,000 in 2026) — in which case you may draw up to 120% of VL. For most buyers who purchase below the FRS threshold, the VL effectively caps total CPF usage.
Why does this matter? If you overpay for a property — say you pay S$850,000 for a flat valued at S$820,000 — the VL is S$820,000, not your purchase price. Your CPF cannot bridge that S$30,000 gap in over-valuation; cash is required.
Withdrawal Limit (WL) for Properties Below 60 Years Remaining Lease
From May 2019, the CPF Board applies a further lease-based restriction. If the property’s remaining lease at the time of purchase does not cover the youngest buyer to at least age 95, the WL is pro-rated downward. For example, a 40-year-old buyer purchasing a property with 50 years of lease remaining would fall short of the age-95 threshold (50 years takes them to age 90, not 95). In such cases, the CPF withdrawal is pro-rated: the buyer can only use CPF up to an amount proportional to the lease years that do cover the household to age 95.
Properties with fewer than 20 years of remaining lease cannot use CPF at all. The CPF Housing Usage Calculator at cpf.gov.sg provides exact withdrawal limits for any property and buyer age combination.
BRS and FRS: The Retirement Set-Aside Rules
Since 1 September 2019, the CPF Board requires that before you can use CPF OA funds to service your mortgage beyond the Valuation Limit, you must have set aside the Basic Retirement Sum (BRS) in your CPF Special Account or Retirement Account. The BRS for 2026 is S$106,500. This rule was introduced specifically to ensure that frequent upgraders and investors do not repeatedly hollow out their retirement savings across successive property purchases.
For most first-time buyers well below the BRS threshold, this rule has little immediate impact — they are drawing CPF well within the VL, so the BRS set-aside is not triggered. The rule primarily affects buyers aged 35 and above who have made multiple property transactions and have significantly depleted their Special Account balances.
Figure 2: How CPF accrued interest erodes net cash profit over time. A property sold at S$1.6M after 20 years yields significantly less cash than the same property sold after 5 years, because a larger CPF refund (principal plus decades of accrued interest at 2.5% p.a.) must be returned to CPF.
Summary Table: CPF Property Rules at a Glance
Parameter
Rule / Rate
Key Notes
CPF OA Interest
2.5% p.a. (floor)
Guaranteed; reviewed quarterly
Accrued Interest Rate
2.5% p.a. (same)
Compounds annually on each withdrawal from date drawn
Valuation Limit
Lower of purchase price or market value
Can draw up to 120% VL if FRS met (S$213,000 in 2026)
Withdrawal Limit
Pro-rated for leases <60 yrs
No CPF use for <20 yrs remaining lease
BRS Set-Aside
S$106,500 (2026) in SA/RA
Required before drawing OA beyond VL (from Sept 2019)
Refund on Sale
Principal + accrued interest
Refund goes to CPF OA, not to seller’s bank
Net Cash to Seller
Sale price − loan − CPF refund
Cash profit can be zero even if property appreciated
Figure 3: CPF property withdrawal rules at a glance — valuation limits, withdrawal limits, and BRS requirements for Singapore property buyers in 2026.
Worked Example: The Chua Family’s CPF Reality
Mr and Mrs Chua (Singapore Citizens, joint purchasers) bought a three-bedroom condominium in Bishan in January 2014 at S$1,350,000. They took a bank loan of S$1,012,500 (75% LTV). At purchase, the property was valued at S$1,350,000, so the VL was S$1,350,000. Neither had met the FRS at that time, so the BRS rule did not restrict their withdrawal.
Over 12 years, their CPF usage breaks down as follows:
Initial lump-sum CPF payment (downpayment): S$180,000 drawn in January 2014
Total CPF principal drawn: approximately S$583,200
By January 2026 (12 years later), the accrued interest on the initial S$180,000 draw alone is approximately S$180,000 × (1.02512 − 1) = S$55,400. The 144 monthly payments also each carry accrued interest from their respective withdrawal dates. Using the CPF Housing Usage Calculator, total accrued interest on all withdrawals by sale date is approximately S$109,500.
The Chuas sell in February 2026 at S$1,820,000. Their net position:
Item
Amount
Sale Price
S$1,820,000
Outstanding Mortgage Balance
− S$398,000
CPF Principal Refund
− S$583,200
CPF Accrued Interest Refund
− S$109,500
Agent Commission (1%)
− S$18,200
Legal & Other Selling Costs
− S$5,500
Net Cash to Chuas
S$705,600
CPF Refund returns to OA (combined)
S$692,700
The S$470,000 gain (S$1,820,000 − S$1,350,000) splits roughly S$705,600 cash and S$692,700 back into CPF. The Chuas are not “poorer” — they have more CPF — but their liquid cash gain is less than the headline appreciation might suggest. Planning this number in advance is essential for anyone considering whether to upgrade, downgrade, or hold.
Why This Matters for Your Property Decisions
CPF accrued interest is one of the most misunderstood elements of Singapore property finance. Several important strategic considerations flow from understanding it correctly.
The cash-poor paper-rich problem. Many long-term property owners are surprised to find that a flat they bought for S$350,000 and sold for S$620,000 yields minimal cash because decades of CPF mortgage payments — all accruing at 2.5% — consume most of the apparent gain. The gain is real, but it goes back into CPF, not the bank account. For owners approaching 55 who plan to withdraw CPF as cash, this distinction narrows considerably — once CPF is returned after sale, it becomes withdrawable from 55 at the applicable rates.
Upgrading strategy. The CPF refund that goes back into your OA after a sale can be used to fund the downpayment on the next property. This gives upgraders a mechanism to “recycle” their CPF through property. However, each successive property restarts the accrued interest clock, so the compounding effect accelerates with each transaction. Buyers planning to sell within 5 years should carefully model whether the expected price appreciation offsets BSD, SSD (if applicable), agent fees, and the lost opportunity cost of the CPF accrued interest refund.
Decoupling and joint ownership. Spouses who hold a property jointly and wish to decouple (one transfers their share to the other) are not selling in the conventional sense, but a partial transfer still triggers a partial CPF refund proportional to the share transferred. This is an important cost to factor into any decoupling calculation. The relevant guide on joint property ownership rules in Singapore covers the full decoupling arithmetic.
Cash versus CPF for later payments. Some buyers choose to service later monthly mortgage instalments with cash rather than CPF OA, deliberately slowing the growth of accrued interest. This strategy can be useful for buyers who plan to sell within 5–7 years and want to maximise cash proceeds. However, it also reduces OA balance, which affects retirement adequacy. There is no single right answer — it depends on the buyer’s retirement planning horizon, expected holding period, and cash flow.
What Might Come Next
This section reflects informed analysis; it is not official CPF Board policy and should not be relied upon as financial advice.
The CPF Board periodically reviews its housing withdrawal rules in response to Singapore’s ageing demographics and retirement adequacy concerns. A possible future direction is a further tightening of the BRS/FRS set-aside thresholds — particularly for owners in the 55–65 age bracket who are using CPF to fund investment properties. The 2019 BRS rule was itself a tightening of the prior “CPF Minimum Sum” framework, and the Board has signalled that retirement adequacy remains a policy priority.
Some commentators have suggested that Singapore could eventually move towards a tiered accrued interest rate that adjusts based on holding period — charging a lower notional rate for long-term owner-occupiers and a higher rate for investment properties. This would be a significant structural change and would require legislative amendment. As of June 2026, no such proposal has been announced by the CPF Board or the Ministry of Manpower.
For current policy, buyers and sellers should refer to the CPF Board’s Home Ownership pages and consult a licensed financial adviser for personalised guidance.
FAQ: CPF Accrued Interest for Property
If I sell my property at a loss, do I still have to repay the CPF accrued interest?
Yes — the CPF refund obligation is not conditional on making a profit. You must return the principal plus accrued interest regardless of the sale outcome. If the net sale proceeds after clearing the mortgage are insufficient to cover the full CPF refund, you return whatever is available (the CPF Board will accept a shortfall if the property was sold at market value). You cannot be required to top up from other assets to meet the shortfall, but the remaining CPF debt is tracked and offsets future CPF top-ups.
Does CPF accrued interest apply to HDB flats purchased with a HDB loan?
Yes, the same accrued interest rules apply to HDB flat purchases whether financed by HDB loan or bank loan. When you sell an HDB flat, all CPF OA withdrawals used — including the initial downpayment, monthly instalments, and any renovation top-ups charged to CPF — accrue at 2.5% p.a. The HDB portal and the CPF My Account portal both show the running accrued interest total. One distinction for HDB buyers: Medisave is separate and is not counted toward property accrued interest.
Can I voluntarily repay CPF ahead of a sale to reduce accrued interest?
You cannot make a partial voluntary repayment of CPF used for property in order to reduce future accrued interest — the CPF Board only accepts the full refund at the time of property disposal or mortgage redemption. Some homeowners repay their bank mortgage ahead of schedule and then allow the property to be ‘unencumbered’, but this does not return CPF; the accrued interest clock continues running until the formal CPF refund is processed. If you fully redeem your bank loan, you can voluntarily refund the CPF used at that point, which stops the accrued interest clock — check the CPF Board’s procedures for voluntary property CPF refund.
Does accrued interest affect my CPF retirement account once it is returned?
Yes — the refunded principal and accrued interest go into your CPF OA (or SA/RA if you are 55 and above). Once in the OA, the funds earn 2.5% p.a. (or higher if the combined-balance bonus applies). If you are 55 or above, funds in your Retirement Account earn 4% p.a., making the CPF refund on sale even more valuable for retirement purposes. The bottom line is that the accrued interest mechanism transfers wealth from liquid cash to locked-away retirement savings rather than destroying it.
My property has appreciated significantly — will my CPF refund really affect my cash profit?
For strong appreciations over a short holding period, the CPF refund has a proportionally smaller impact. A property bought at S$800,000 in 2020 with S$200,000 CPF used (accrued interest ~S$27,000 after 6 years) sold at S$1,100,000 yields net cash of roughly S$873,000 before selling costs — the S$227,000 CPF refund is real but the S$300,000 price gain still nets significant cash. The impact is most pronounced when (a) holding periods are very long, (b) the property has appreciated modestly relative to CPF drawn, or (c) the mortgage balance is still high. Modelling your own CPF-adjusted proceeds before committing to a sale timeline is always worthwhile.
Do foreigners or PRs face the same CPF accrued interest rules?
Permanent Residents who have CPF OA balances may use their CPF to buy HDB flats (subject to eligibility) and resale private property (subject to Withdrawal Limit rules). The accrued interest rules apply identically to PRs. Foreign nationals do not have CPF accounts and therefore have no CPF accrued interest to consider — their entire purchase and sale proceeds are in cash. However, foreigners pay 60% ABSD on residential property purchases, which is a far more significant financial consideration. See our guide on the ABSD Singapore 2026 complete guide for full details.
How do I find out exactly how much CPF I have used and how much accrued interest has accumulated?
Log in to your CPF My Account portal at cpf.gov.sg using Singpass. Navigate to ‘My Dashboard’ → ‘Home Ownership’ → ‘Properties with CPF Withdrawals’. The portal shows a property-by-property breakdown of total CPF principal drawn, total accrued interest to date, and the refund amount applicable if you were to sell today. The figure updates daily. Both buyers and co-owners can view this for jointly-held properties. The CPF Board’s Housing Usage Calculator at cpf.gov.sg also lets you model future accrued interest projections for planning purposes.
This article is for general informational purposes only and does not constitute financial, legal, or investment advice. CPF rules, interest rates, BRS/FRS/ERS thresholds, and housing policy are subject to change. Always verify current CPF rules at cpf.gov.sg and current MAS guidelines at mas.gov.sg. For personalised advice on CPF planning for property, consult a CPF-accredited financial planner or a licensed property professional registered with the Council for Estate Agencies (CEA). LovelyHomes.com.sg accepts no liability for reliance on the information provided herein.
📌 Quick Answer: CPF Housing Grants in Singapore (2026)
Enhanced CPF Housing Grant (EHG): Up to S$120,000 for families earning ≤ S$9,000/month, or S$60,000 for singles earning ≤ S$4,500/month — available for both BTO and resale HDB flats.
CPF Housing Grant (Family Grant): Up to S$80,000 for new BTO or S$50,000 for resale flats; income ceiling S$14,000/month for SC+SC or SC+SPR couples.
Proximity Housing Grant (PHG): S$30,000 to live together with parents/children, or S$20,000 to live within 4 km — no income ceiling, resale flats only.
Step-Up CPF Housing Grant: S$15,000 for second-timer families upgrading from a 2-room subsidised flat to a 2–4 room BTO; income ceiling S$7,000/month.
Maximum stacking: A Singapore Citizen family buying a resale flat can receive up to S$230,000 by combining the EHG + Family Grant + PHG.
How to apply: All CPF housing grants are applied for through the HDB Flat Eligibility (HFE) letter — there is no separate application form; the grants are assessed automatically.
CPF OA for private property: Grants do not apply to private property purchases; however, your CPF Ordinary Account balance can be used for the down payment, monthly instalments, and stamp duties on private property — subject to the Valuation Limit and Withdrawal Limit.
What Are CPF Housing Grants?
CPF housing grants are cash subsidies administered by the Housing and Development Board (HDB) and funded from the government’s housing budget. They reduce the cash or CPF Ordinary Account (OA) outlay required to purchase a subsidised HDB flat, effectively lowering the loan quantum needed and the monthly instalment burden for eligible Singapore Citizens and Permanent Residents.
Unlike bursaries or income supplement schemes, CPF housing grants are credited directly into the buyer’s CPF Ordinary Account once the flat purchase is completed, and are applied first to reduce the purchase price at the point of resale or disbursed at key collection for BTO flats. They do not count as accrued interest and do not need to be repaid upon sale, but the grant amount — along with accrued interest at 2.5% per annum on any CPF used — must be refunded to CPF upon the sale or transfer of the flat.
The grant landscape was significantly reformed on 20 August 2024, when the EHG for families was raised from S$80,000 to S$120,000 and the singles grant doubled from S$30,000 to S$60,000. The Family Grant and PHG remain at their current levels as of June 2026.
Figure 1: Singapore CPF Housing Grants at a Glance — Grant types, maximum amounts, income ceilings and eligible property types (2026).
Enhanced CPF Housing Grant (EHG): The Largest Grant
The EHG is the flagship CPF housing grant, designed to help lower-income Singaporeans purchase their first flat. It replaced the Additional CPF Housing Grant (AHG) and Special Housing Grant (SHG) in September 2019, combining them into a single, more generous scheme with a sliding scale tied to household income.
Key eligibility conditions for the EHG (2026):
At least one applicant must be a Singapore Citizen, and the household must include at least one other Singapore Citizen or Permanent Resident.
All applicants and occupants must be first-timer applicants (no prior ownership of an HDB flat or private property in Singapore).
Monthly household income must not exceed S$9,000 (families) or S$4,500 (singles buying a 2-room Flexi under the Single Singapore Citizen Scheme).
All working applicants must have been employed continuously for at least 12 months and must be working at the time of the HFE letter application.
The flat purchased must have a remaining lease of at least 20 years and must cover the youngest buyer until at least age 95.
The EHG amount is determined on a sliding scale: applicants at the lowest income bracket (≤ S$1,500/month) receive the maximum S$120,000, tapering down to S$5,000 for households earning close to the S$9,000 ceiling. See Figure 3 for the full sliding scale. This design ensures that the subsidy is proportionally larger for those who need it most.
The EHG applies to both new BTO flats and resale HDB flats, making it one of the few grants usable across the full flat type spectrum. It does not apply to Design, Build and Sell Scheme (DBSS) flats or Executive Condominiums (ECs).
CPF Housing Grant (Family Grant): The Mainstream Grant
The Family Grant is available to Singapore Citizen households with a broader income range, up to S$14,000 per month. Unlike the EHG, it is not means-tested on a sliding scale — eligible buyers receive the full amount or nothing.
Flat Type
Grant Amount (SC+SC)
Grant Amount (SC+SPR)
Income Ceiling
New 2-room Flexi to 4-room BTO
S$40,000
S$30,000
S$14,000/mth
New 5-room or larger BTO
S$40,000
S$30,000
S$14,000/mth
Resale 2-room to 3-room
S$40,000
S$30,000
S$14,000/mth
Resale 4-room and larger
S$50,000
S$40,000
S$14,000/mth
Singles (2-room Flexi resale only)
S$25,000
N/A
S$7,000/mth
Source: HDB, effective as of June 2026.
The Family Grant for resale 4-room and larger flats was raised to S$50,000 (SC+SC) and S$40,000 (SC+SPR) in the same August 2024 revision. This reflects the government’s effort to keep resale HDB flats affordable as median prices in many towns have risen sharply since 2020.
Proximity Housing Grant (PHG): Living Near Family
The Proximity Housing Grant was introduced in August 2015 to incentivise multi-generational proximity — a social policy objective as much as a financial one. It is unique in having no income ceiling, meaning even higher-income families can benefit from it when buying resale flats near parents or children.
The PHG pays S$30,000 if the applicant purchases a resale flat to live in the same flat as their parents or child (joint application or within the same household). It pays S$20,000 if the resale flat is purchased within 4 kilometres of the parent’s or child’s residence. The 4 km is measured using the straight-line distance between the two postal addresses. It applies to resale HDB flats only — it cannot be applied to BTO flats or DBSS flats.
To receive the PHG, at least one of the parents or child must be a Singapore Citizen or Permanent Resident. The proximity requirement must be maintained for five years after the key collection of the resale flat; failure to do so may result in a clawback of the grant.
Step-Up CPF Housing Grant and Other Targeted Grants
The Step-Up CPF Housing Grant of S$15,000 is specifically targeted at second-timer Singapore Citizen families who previously purchased a 2-room subsidised flat (BTO) and wish to upgrade to a 2-room to 4-room BTO flat. The income ceiling is S$7,000/month and the household must not own any other private property. This grant acknowledges the financial difficulty of moving up the housing ladder on a modest income.
The Seniors’ Priority Scheme (SPS) is not a cash grant but provides elderly Singapore Citizens aged 55 and above with priority allocation in BTO exercises when they are purchasing a 2-room Flexi flat near their adult children. Priority is given to multi-generational applicants — parents applying together with children — further reinforcing the proximity-and-community theme across Singapore’s housing grant framework.
Figure 2: Maximum CPF housing grant combinations by buyer profile. A Singapore Citizen family purchasing a resale flat near parents can stack up to S$230,000 in grants.
How to Apply for CPF Housing Grants
All CPF housing grants are administered through a single gateway: the HDB Flat Eligibility (HFE) letter. Introduced in May 2023, the HFE letter replaced the previous system of separate Eligibility Letters for different grants. To apply, eligible buyers must log in to the HDB Flat Portal (flat.hdb.gov.sg) with their Singpass and submit an HFE application. The assessment is integrated with CPF and IRAS data and typically takes around 21 working days.
The HFE letter is mandatory before a buyer can:
Book a BTO flat during a sales launch exercise;
Exercise an Option to Purchase (OTP) for a resale HDB flat;
Apply for an HDB loan.
Once issued, the HFE letter is valid for nine months. It confirms the buyer’s eligibility, the specific grants they qualify for and their amounts, and the maximum HDB loan they may borrow. Buyers must obtain a new HFE letter if their circumstances change materially (e.g., income, marital status, property ownership) or if the existing letter expires.
Grant Summary Table: All CPF Housing Grants at a Glance
Grant
Max Amount
Min SC Required
BTO?
Resale?
Income Ceiling
EHG (Families)
S$120,000
1 SC
✓
✓
S$9,000/mth
EHG (Singles)
S$60,000
Applicant is SC
✓
✓
S$4,500/mth
Family Grant (SC+SC)
S$50,000 resale 4R+
2 SC
✓
✓
S$14,000/mth
Family Grant (SC+SPR)
S$40,000 resale 4R+
1 SC
✓
✓
S$14,000/mth
PHG (living together)
S$30,000
1 SC/SPR
✗
✓
None
PHG (within 4 km)
S$20,000
1 SC/SPR
✗
✓
None
Step-Up Grant
S$15,000
1 SC
✓ (2–4 Rm)
✗
S$7,000/mth
Note: Buyers must be first-timers for EHG and Family Grant. Grants are not available for EC (Executive Condo) or private property purchases. Source: HDB, June 2026.
Worked Example: How Much Can Mr & Mrs Tan Actually Save?
📄 Worked Example — SC Couple Buying Resale 4-Room Flat in Tampines
Profile: Mr & Mrs Tan, both Singapore Citizens, first-time buyers. Combined household income S$7,800/month. Mrs Tan’s parents live in Tampines, 1.2 km from the flat they are considering. They have been employed continuously for 14 months.
Flat: 4-room resale HDB flat in Tampines, asking price S$620,000.
Grants they qualify for:
EHG: Household income S$7,800/month → approximately S$35,000 (sliding scale; income ≤ S$7,500/month band).
Family Grant (SC+SC, resale 4-room): S$50,000.
PHG (within 4 km of Mrs Tan’s parents): S$20,000.
Total grants: S$35,000 + S$50,000 + S$20,000 = S$105,000
Effective purchase price after grants: S$620,000 − S$105,000 = S$515,000
HDB Loan (at 80% LTV on effective price S$515,000): S$412,000 at 2.6% p.a. over 25 years → monthly instalment S$1,864/month (MSR: 23.9% — PASS at 30% ceiling).
Cash outlay at completion (5% cash + BSD + legal): 5% × S$515,000 + S$13,200 + S$2,500 (legal) = S$41,450 cash. Balance of CPF OA available for the remaining 15% down payment.
Note: Grant amounts are illustrative based on the published EHG sliding scale. Actual grant eligibility is confirmed via the HFE letter. BSD calculated on full purchase price (not after grants). CPF accrued interest at 2.5% p.a. applies to all CPF withdrawn.
Why CPF Housing Grants Matter: The Broader Policy Context
Singapore’s CPF housing grant framework is one of the most generous owner-occupier subsidy systems in Asia. In a city where median resale HDB flat prices have risen by roughly 40–55% since 2020, grants of S$100,000–S$230,000 provide meaningful relief for households in the S$4,000–S$9,000/month income band — the working and lower-middle class that earns too much for full public housing in many neighbouring countries but faces real affordability pressure in Singapore’s private market.
The August 2024 doubling of the EHG was a direct policy response to research showing that pre-grant affordability had deteriorated for first-timers in the S$5,000–S$9,000 income band since 2020. By front-loading the subsidy into the capital cost rather than the monthly instalment, HDB avoids the MAS mortgage stress-test complexity that would arise from an interest-rate subsidy model.
From a buyer’s perspective, the grants also have a leveraging effect: a S$120,000 EHG on a S$450,000 BTO flat reduces the loan quantum by 27%, lowering the debt-service burden by approximately S$540/month on a 25-year HDB loan — a meaningful improvement in household cash flow over the life of the mortgage.
Figure 3: The EHG sliding scale — grant amount decreases as household income rises, from S$120,000 at ≤S$1,500/month to S$5,000 at ≤S$9,000/month. Singles receive half of the family amount.
What Might Change Next: Grant Policy Outlook 2026–2028
The August 2024 EHG increase followed roughly four years of HDB price inflation, suggesting that grant levels are periodically reviewed against affordability indices rather than adjusted on a fixed schedule. The following is editorial speculation based on observable trends and is not government policy.
Given that the URA private residential price index has continued to rise modestly in Q1 2026 (+0.5% QoQ) and HDB resale prices remain elevated (RPI 216.3 in Q1 2026), a further grant increase would not be out of place if the next round of BTO supply does not materially ease affordability pressure. The income ceiling for the EHG (S$9,000/month for families) was last revised in 2019; with median household income now at approximately S$10,000–S$11,000/month, there is a structural argument for raising the ceiling to include more middle-income households — though this would carry a significant fiscal cost.
There is also industry discussion about whether the PHG’s 4-km definition should be relaxed to accommodate households in sprawling new towns (Tengah, Punggol North) where the road network means 4 km of air-line distance may correspond to a 15-minute drive. Whether HDB adjusts the proximity metric to a travel-time standard remains to be seen.
Frequently Asked Questions
Can I use CPF housing grants for an Executive Condo (EC)?
No. CPF housing grants — including the EHG, Family Grant, PHG, and Step-Up Grant — are not available for Executive Condo purchases. ECs are co-developed by private developers and are considered a hybrid between public and private housing. They are subsidised only indirectly: EC buyers enjoy a lower land cost embedded in the pricing, and second-timer EC buyers may use their CPF Ordinary Account balance. However, no cash grant is payable. The grants exclusively apply to HDB flats (BTO and resale).
If my income increases after receiving the grant, does HDB claw it back?
No. Grant eligibility is assessed at the time of the HFE letter application, and the grant amount is fixed at that point. A subsequent increase in income after the application date does not trigger a clawback. However, if you misrepresent your income on the HFE application — for example, by failing to disclose commission income or rental income — HDB may require repayment of the grant and impose penalties under the Housing and Development Act. It is important to declare all sources of income accurately at the time of application.
My parents live overseas. Can I still get the Proximity Housing Grant?
No. The PHG requires that the parents or children you are purchasing near are Singapore Citizens or Permanent Residents, and they must be residing in Singapore at the relevant address. The grant is specifically designed to encourage multi-generational proximity within Singapore’s social fabric and does not apply to buyers seeking to be near family members based overseas. If your parents are in the process of relocating to Singapore, they must be in residence at the qualifying address at the time of the HFE letter application.
Can the grants be used to pay Buyer’s Stamp Duty or legal fees?
Not directly. CPF housing grants are credited into the buyer’s CPF Ordinary Account. From there, CPF OA funds can be used to pay the Buyer’s Stamp Duty (BSD) on HDB resale flats or new BTO flats, as well as legal conveyancing fees. So while the grant does not directly pay these costs, it increases the CPF OA balance available to cover them. Additional Buyer’s Stamp Duty (ABSD) cannot be paid from CPF — it must be paid in cash within 14 days of signing the Option to Purchase or Sale and Purchase Agreement.
I previously sold an HDB flat and am buying again. Can I still get any grants?
Second-timer buyers have more limited grant access. The Family Grant and EHG are generally reserved for first-timers. However, you may be eligible for the Step-Up CPF Housing Grant (S$15,000) if you are upgrading from a 2-room Flexi BTO flat to a larger flat. The PHG also has no first-timer restriction, so if you are purchasing a resale flat near parents or children, you may still qualify for the PHG regardless of prior HDB ownership. Confirm your exact eligibility via the HFE letter portal.
What happens to the grants when I sell my flat?
When you sell your HDB flat, all CPF monies withdrawn for the flat — including the grant amount — must be refunded to your CPF Ordinary Account, along with accrued interest at 2.5% per annum. The grant itself is not repaid to HDB; it is simply treated as CPF OA funds that were used for the flat purchase. The refund reduces your cash profit from the sale. For example, if you received a S$120,000 EHG 10 years ago, the refund to CPF on sale would be S$120,000 × (1.025)^10 ≈ S$153,600. This is a common point of confusion among upgraders who expect a larger cash balance after sale.
Do foreigners or PRs qualify for CPF housing grants?
Singapore Permanent Residents (SPRs) have limited access to CPF housing grants. An SPR can be included as a co-applicant in an HFE application where the primary applicant is a Singapore Citizen, and the household can then qualify for the EHG and Family Grant at the SC+SPR rates (which are typically S$10,000–S$15,000 lower than SC+SC rates). SPRs applying alone do not qualify for any CPF housing grant, and they cannot purchase HDB flats without a Singapore Citizen co-applicant. Foreign nationals have no access to CPF housing grants and cannot purchase subsidised HDB flats.
Disclaimer: The information in this article is for general educational purposes only and reflects publicly available data from the Housing and Development Board (HDB) and Central Provident Fund Board (CPF) as of June 2026. Grant amounts, eligibility criteria, and income ceilings are subject to change by the government at any time. This article does not constitute financial, legal, or housing advisory advice. For a definitive assessment of your grant eligibility, apply for an HDB Flat Eligibility (HFE) letter at flat.hdb.gov.sg. For personalised financial guidance, consult a licensed mortgage broker or financial adviser regulated by MAS.
