When buying a home in Singapore, you can choose to apply for a housing loan from the Housing & Development Board (HDB) or other financial institutions like banks. This article will detail the eligibility criteria for applying for an HDB housing loan and how to apply for one.
Before starting your home purchase journey, you can log in to the HDB Flat Portal to apply for an HDB Flat Eligibility (HFE) letter to get a comprehensive understanding of your housing eligibility and loan options. The HFE letter will state whether you are eligible to buy a new or resale HDB flat, as well as the housing grants and HDB housing loan amount you qualify for.
Below is a detailed introduction to the eligibility criteria, credit assessment standards, and other important information related to HDB housing loans.
Table of Contents
Eligibility Criteria
Applicants for an HDB housing loan need to meet the following conditions.
| Citizenship | At least 1 applicant must be a Singapore Citizen | |
| Household Status | The core applicants in the HFE application must not have taken more than two HDB housing loans previously. *Core applicants refer to the main applicant and essential occupiers. All core applicants must be listed in the flat application, and they must physically reside in the flat throughout the Minimum Occupation Period (MOP). The names of core applicants cannot be removed. |
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| Intention to Purchase | · Seniors aged 55 and above may not apply for a short-lease 2-room Flexi flat*. · Singles aged 35 and above can only purchase the following two types of HDB flats: 1. A 99-year lease 2-room Flexi flat in a non-mature estate; or 2. A 5-room or smaller resale flat *Seniors are not eligible for an HDB housing loan when purchasing a short-lease 2-room Flexi flat or a Community Care Apartment. They can only pay for the flat purchase using cash, savings from their CPF Ordinary Account, or a combination of both. |
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| Monthly Household Income Ceiling | The gross monthly household income must not exceed: · Families – S$14,000 · Extended families – S$21,000 · Singles – S$7,000 |
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| Property Ownership | The following situations are considered as having ownership of another property, regardless of whether the property is located in Singapore or overseas, and whether it is under construction or completed: · Property acquired by gift; · Property inherited by will or under the Intestate Succession Act; · Property owned, acquired, or disposed of through a nominee; · Property held in trust for another person or company. |
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| Based on the above definitions, property types considered under your name include but are not limited to: | ||
| Private Residential Property | Non-Residential Property | |
| · House, building, or land zoned for residential use · Executive Condominium (EC) · Privatised HUDC flat · Mixed-use development properties (e.g., shophouses with a residential component) |
· Property on land zoned for non-residential use (e.g., commercial properties like shops or offices) · Property not intended for residential use (e.g., market or hawker stalls, plantations or farmland) |
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| Specifically, the following rules apply to property ownership for applicants and occupiers: | ||
| Private Residential Property | Non-Residential Property | |
| All applicants and occupiers listed in the flat purchase application: · Must not own any local or overseas private property; and · Must not have disposed of any private property in the 30 months before submitting the HFE application (*). *This means that if you disposed of a private residential property on January 1, 2024, you can only submit your HFE application on or after July 1, 2026. |
When purchasing an HDB flat, a PLH resale flat, or a resale flat with CPF housing grants, all applicants and occupiers listed in the flat purchase application (as a household unit): · Can own a maximum of one non-residential property (any additional properties must be disposed of at least 30 months prior) |
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| Remaining Lease of the HDB Flat | The loan amount will depend on the extent to which the remaining lease can cover the youngest applicant until the age of 95 or more. | ||
| Remaining lease is more than 20 years and can cover the youngest applicant until they are | Loan-to-Value (LTV) Limit | Loan Tenure | |
| 95 years or older | New flat: Up to 75% of the purchase price Resale flat: Up to 75% of the resale price |
The lowest of the following three: · 25 years · 65 years minus the average age of the applicants · The flat’s remaining lease at the time of application minus 20 years |
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| Less than 95 years old | The LTV limit will be lower than 75%, pro-rated based on the extent the remaining lease can cover the youngest applicant to the age of 95 and above | ||
Conditions for Applying for a Second HDB Housing Loan
If you need to apply for a second HDB housing loan, in addition to meeting the eligibility criteria above, you must also meet the following requirements:
| When purchasing the second HDB flat | Conditions for obtaining a second HDB housing loan |
| You have already disposed of your current HDB flat or private residential property and do not own any HDB flats | Before submitting the HFE application, you and the essential occupiers must ensure that: · The last owned HDB flat or private residential property was disposed of at least 30 months prior; and · 50% of the cash proceeds (*) from the disposal of the previous property will be used for this flat purchase *Funds from your CPF Ordinary Account (OA) can also be used for the purchase of the second flat, but you must ensure that a balance of more than S$20,000 remains in it. |
| You have not yet disposed of your other properties | Until the disposal is complete, your second HDB flat will be charged a commercial housing loan interest rate, which is pegged to the average non-promotional rate for HDB flats offered by Singapore’s three local banks (*). After the disposal is complete, the interest rate on your second HDB flat will be converted to HDB’s concessionary rate.*The three local banks are DBS, OCBC, and UOB. |
What if I don’t meet the eligibility criteria?
If you need a mortgage to finance your HDB flat purchase and do not meet the eligibility criteria for an HDB housing loan, your only option is a bank housing loan.
Credit Assessment Criteria
In addition to meeting the eligibility criteria above, flat applicants must also satisfy the following credit assessment standards.
For regular employees, you need to ensure:
- You are employed at the time of submitting the HFE application
- You have stable employment and income
For individuals with other income who do not make monthly CPF contributions, in addition to the above conditions, you must also have a good credit standing.
Details of the HDB Housing Loan
The housing loan amount granted by HDB will be determined based on the following:
| Financial Situation of the Flat Applicant | The HDB housing loan must not exceed the applicant’s repayment capacity. HDB will assess the applicant’s financial situation based on the following criteria: · Age · Monthly income · Employment stability · Other loans and financial commitments (e.g., credit card bills, car loans, etc.) · Past repayment history · Monthly cash savings Please note: 1. The applicant must be employed with an income at the time of submitting the HFE application and when HDB disburses the housing loan. 2. If the applicant is purchasing an uncompleted flat, HDB will review the applicant’s financial situation upon the flat’s completion to ensure there has been no adverse change in repayment capacity. The loan amount disbursed may be reduced if the financial situation deteriorates. |
| Repayment Period | The maximum repayment period is the shortest of the following three: · 25 years · 65 years minus the average age of the applicants · The flat’s remaining lease at the time of application minus 20 years |
| Applicable Interest Rate | To encourage more prudent borrowing, the interest rate applicable to the HDB loan will be the higher of the following two: · A floor rate (currently 3.0% per annum) · The prevailing HDB housing loan interest rate |
| Monthly Instalment | Capped at 30% of the applicant’s monthly income |
| LTV Limit | LTV refers to the maximum housing loan amount an applicant can take, expressed as a percentage of the property’s price or value, whichever is lower. · New flat: 75% of the flat’s purchase price · Resale flat: 75% of the flat’s price or value (whichever is lower) |
Additional Information:
The HDB housing loan will be disbursed upon key collection. Once the housing loan is disbursed, it means that:
- You will not be able to apply for another HDB housing loan within 30 months from the date of purchase.
- All core members (*) in the HFE application will be considered to have taken an HDB housing loan.
*Core members refer to the applicants and occupiers listed in the HFE application, who must physically reside in the flat during the Minimum Occupation Period (MOP). The information of these occupiers cannot be removed during the MOP.
HDB Housing Loan Monthly Repayments and Interest Payments
Monthly Repayments
Once your HDB housing loan becomes effective, your first monthly payment will be due on the first day of the following month. Thereafter, you will need to make timely payments on the first day of each month until the entire principal and interest are paid off.
You can use cash, savings from your CPF Ordinary Account, or a combination of both for your monthly repayments, subject to the prevailing rules of the Central Provident Fund Board. If you choose to pay with cash, the CPF funds you accumulate can be used for your retirement savings.
Saving on Interest Payments
Given the choice, no one wants to pay more interest to the HDB. You can effectively save on the interest you have to pay through the following methods.
- Minimize the loan amount: Besides borrowing the minimum amount from the start, you can also choose to make early repayments when you have extra funds.
- Shorten the loan tenure: A shorter loan tenure means a heavier monthly repayment burden. However, shortening the loan tenure can significantly save on housing loan interest.
Here are two simple examples for comparison.
- Assume you apply for a loan tenure of 25 years with an interest rate of 2.60%.
| Total Loan Amount | S$250,000 | S$200,000 |
| Monthly Repayment | S$1,135 | S$908 |
| Total Loan (Principal + Interest) | S$340,500 | S$272,400 |
| Total Interest | S$90,500 | S$72,400 |
As you can see, a S$200,000 loan will save you S$18,100 in interest payments.
- Assume you apply for a total loan amount of S$250,000 with an interest rate of 2.60%.
| Loan Tenure | 25 years | 20 years |
| Monthly Repayment | S$1,135 | S$1,337 |
| Total Loan (Principal + Interest) | S$340,500 | S$320,880 |
| Total Interest | S$90,500 | S$70,880 |
As you can see, a 20-year loan will save you S$19,620 in interest payments.
Managing your housing loan wisely can provide you with greater financial flexibility, helping you achieve other goals such as accumulating retirement savings, making other investments, and more.
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