Purchasing HDB Flat (BTO, DBSS, Resale): How Much Can You Afford and Borrow?

Posted by Sean Lim on May 19, 2017


This is the latest matrix showing the financing options for HDB flats in Singapore. You can take up a HDB loan or a bank loan. There are eligibility conditions, TDSR and MSR factors. This article includes the latest announcement by HDB on 27 August 2013 on mortgage tenure and MSR.

  • To be eligible for HDB concessionary Loan, your average gross monthly household income cannot be more than:-

    • $10,000 for families

    • $15,000 for extended families

    • $5,000 for singles

  • If you do not qualify for HDB Loan, your next option is HDB Bank Loan.

  • For HDB concessionary and HDB Bank Loan, if LTV is 80% ,Loan Tenure is up to 25 years or age 65 whichever is earlier. If you borrow 60% or lesser from a bank, the Loan Tenure is up to 30 years and capped at age 75 whichever is earlier.

  • Minimum cash downpayment for HDB loan is ZERO. Bank requires a 5% upfront if you borrow up to 80%. For up to 60% LTV borrowing, be prepared for 10% cash. The rest of downpayment can be funded from CPF OA.

  • The age of all borrowers used to calculate loan tenure is based on income-weighted. It is not a simple average income of borrowers. It will be adjusted according to the age and income of each person. So it will be biased towards the higher earner and/ or older person.

  • Assessment of borrowing limits for HDB loan and bank loan are based on these factors:

    • 60% of Total Debt Servicing Ratio (TDSR)

    • 3.5% Medium-term Interest Rate

    • 30% Mortgage Servicing Ratio (MSR)

For quick self-help assessment, check out the Singapore TDSR calculator and MSR calculator

TDSR MSR table for HDB loan vs Bank loan


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Topics: HDB

Written by Sean Lim

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