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Housing Loans for HDB Flat Buyers
Learn about the housing loans offered by HDB or a Financial Institution (FI), as well as the key differences between both loans.
Last updated 10 March 2026
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If you need a loan to help pay for your new or resale HDB flat, you may apply for a housing loan from either HDB or a Financial Institution (FI) regulated by the Monetary Authority of Singapore (MAS).
To help you understand your housing loan options, this guide brings you through the housing loans offered by HDB and FIs, as well as the key differences between both loans.
Why is choosing the right housing loan for you important?
Choosing the right housing loan is important because it affects how much you can borrow, your monthly repayments, and your long-term financial commitments. A loan that suits your income, financial situation, lifestyle, and risk tolerance can help make home ownership more manageable.
HDB Housing Loan
What does the HDB housing loan offer?
The HDB housing loan offers:
A relatively stable interest rate pegged at 0.1%-point above the prevailing CPF Ordinary Account interest rate (reviewed quarterly).
The flexibility to change the repayment period if the situation calls for it.
Why should I choose an HDB housing loan?
You can consider the HDB housing loan if you are seeking a stable monthly payment plan. Do take note of the following:
You must use all of your CPF savings to pay for the flat purchase (you have the option to retain up to $20,000 in CPF savings per flat buyer), before the HDB housing loan can be granted. This is to minimise the amount of housing loan required for the flat purchase.
Each household can only take up to two HDB housing loans collectively.
Am I eligible for the HDB housing loan? How can I apply for it?
You will need to apply for an HDB Flat Eligibility (HFE) letter first to confirm your eligibility for an HDB housing loan. You and all persons listed in the HFE application must meet the eligibility conditions:
Citizenship: At least 1 applicant is a Singapore Citizen
Loan history: Have not taken 2 or more housing loans from HDB.
Monthly household income ceiling: $14,000 for families and $7,000 for singles
Property ownership: Must not own or have an interest in any private residential property (local or overseas) and must not have disposed of one in the last 30 months before your HFE application.
Check out more eligibility conditions.
You must be working at the point of HFE letter application and when HDB disburses the housing loan.
How much HDB housing loan can I get?
The HDB housing loan amount is determined based on factors such as:
Your financial situation: To ensure you are borrowing within your means, HDB considers your age, monthly income, financial stability, current loans and financial commitments (e.g. credit card bills, car loans), past repayment records, monthly cash savings.
Repayment period: 25 years, or 65 years minus the average age of applicants, or remaining lease of flat minus 20 years – whichever is the shortest
Monthly instalments: Up to 30% of your monthly income
Loan-to-Value (LTV) Limit: Up to 75% of flat purchase price for new flats like BTO and SBF, or up to 75% of resale price or value of resale flat (whichever is lower)
HDB will review your financial position nearer the completion of the flat, before we disburse the housing loan, to confirm there is no adverse change in your ability to pay your housing loan. If there are adverse changes, the loan amount may be reduced.
Housing Loan from Financial Institutions (FIs)
What does a housing loan from FIs offer?
A housing loan from FIs offers:
Greater flexibility in terms of interest rate packages and loan amount.
Longer loan tenures of up to 30 years, compared to the loan tenure of up to 25 years for HDB housing loan.
No requirement on usage of CPF before disbursement of housing loan.
💡 If you are taking a housing loan from an FI, it’s important to note that you need to appoint a private solicitor for the conveyancing (transfer of ownership of the flat to you) and mortgage of the flat. FIs typically work with an approved panel of law firms for home purchase transactions, so you should check with your FI on the relevant arrangements.
Why should I choose a housing loan from an FI?
You can consider a housing loan from an FI if you prioritise flexibility and are prepared to research and explore various loan packages offered by different banks for better deals. Remember to always check the terms and conditions before you commit to an FI loan.
Am I eligible for a housing loan from an FI? How can I apply for it?
You will need to apply for an HDB Flat Eligibility (HFE) letter first. Even if you’re not intending to take an HDB housing loan, the HFE letter confirms your fundamental eligibility to buy an HDB flat (BTO or resale) and receive grants.
You can apply for a housing loan from a participating FI directly on the HDB Flat Portal via our integrated loan application service. Here’s how:
In your HFE letter application, select the ‘Take up a housing loan’ option.
Scroll down to the ‘Check Housing Loan Eligibility’ section.
Click on the ‘Select Loan Provider(s)’ button and a window will pop up. This window provides a list of FIs where you can compare the different FIs’ loan packages as well as confirm your eligibility for an HDB loan.
Once you have clicked on the ‘Continue’ button in the pop-up window, the list of chosen FIs and HDB housing loan will be reflected on your HFE letter application.
Follow the steps on the HFE letter application form to submit the necessary documents and complete your HFE letter application.
After the HFE letter application is submitted, the application for In-Principle Approval (IPA) of the loan will be sent to the selected FIs.
The FIs available on the integrated loan application service on the HDB Flat Portal are:
DBS Bank Limited
Hong Leong Finance Limited
Maybank Singapore Limited
Overseas-Chinese Banking Corporation Limited
Sing Investments & Finance Limited
United Overseas Bank Limited
💡 Use HDB’s financial calculators to work out your budget and payment plan, with housing loan estimates from both HDB and the FIs.
Confirming a Loan Offer from a Participating FI
You will need to obtain a valid Letter of Offer (LO) to confirm the loan offer from an FI before you can:
Sign the Agreement for Lease for a new HDB flat
Exercise the Option To Purchase (OTP) for a resale flat
If you had earlier obtained an IPA through the integrated housing loan application service, you will be guided to submit a request for the LO on HDB Flat Portal after:
Selection of flat; for those buying a flat from HDB
Request for value; for those buying a resale flat
Differences between HDB Loan and Loan from Financial Institution (FI)
Here is a handy guide on the differences between a loan from HDB and an FI:
Differences between an HDB loan and loan from an FI
HDB Loan | Loan from an FI | |
Downpayment at signing of Agreement of Lease | 10% of the purchase price, which can be paid in full using your CPF Ordinary Account (OA), with cash, or with a combination of both. No minimum cash payment is required. | 20% of the purchase price, with at least 5-10% payable in cash and the remaining 10-15% payable in cash or your CPF OA savings (depending on Loan-to-Value limit of 75% or 55%). |
Maximum loan amount | Up to 75% of the purchase price for new flat For resale flats, it is 75% of the resale price or market valuation (whichever is lower) | Up to 75% of bank evaluation or purchase price (whichever is lower) |
Loan Period | Up to 25 years | Up to 30 years |
Interest Rate | Currently 2.6% per year (pegged at 0.1% above the prevailing CPF OA interest rate) | Varies between banks and may change with market conditions |
Early Repayment/ Refinancing | No penalty if you wish to pay off your loan early Option to refinance your loan with a bank anytime | May refinance an FI housing loan with one from another FI or with a different interest rate package, subject to the terms and conditions of the various FIs Not able to refinance to an HDB loan |
Conditions to take a second HDB housing loan | Before you can be granted a second HDB housing loan, you must first use the full CPF refund and part of the cash proceeds^ received from the disposal of your last-owned HDB flat/ private residential property, to pay for your new flat purchase. | Not applicable |