HDB downpayment guide: How much do you need for BTO, resale and EC?

Buying a HDB flat is a rite of passage for many first-time homeowners in Singapore. Whether it's a HDB BTO flat, resale flat or executive condominium (EC), you'd need to have enough money first off to pay the downpayment.

While the prices of BTO flats, resale flats and ECs can vary, there's no denying that they have all increased, and will take a significant chunk out of your savings and CPF.

But how much exactly do you need for this downpayment? How do you figure out how much it is for different type of flat? Here's where we come in. 

1. What's new for HDB downpayments?

June 2024: Lower upfront downpayment for young couples

In June 2024, HDB announced that eligible young couples — including students and full-time NSFs — only needed to pay an initial 2.5 per cent downpayment when booking a new HDB flat, instead of the usual 5-10 per cent. This lighter upfront cost helps couples who might not have a dual income yet secure a home sooner.

• Who qualifies: At least one applicant must be aged 30 or below and be a student, serving NS, or recently completed studies/NS. Applicants must also be married or applying under the Fiance/Fiancee Scheme.
• How it helps: Couples can defer their income assessment for grants and loans until key collection, making it easier to get higher grants or loan amounts.

August 2024: Lower loan limits, but bigger grants for first-timers

From Aug 2024, the HDB loan-to-value (LTV) limit dropped from 80 per cent to 75 per cent, meaning buyers needed to pay a slightly bigger downpayment for new or resale flats.

However, the Enhanced CPF Housing Grant (EHG) will be boosted-first-time families can now receive up to $120,000, and singles up to $60,000. With all grants combined, eligible first-timer families can get up to $230,000 off a resale flat, and singles up to $115,000. This aims to keep flats affordable for genuine buyers, even as borrowing rules get a bit stricter.

July 2025: Deferred income assessment widened

In July 2025, the Deferred Income Assessment scheme got even more flexible. Now, just one partner needs to be a student or in NS for couples to qualify (previously, both did). This change opens the door for more young couples to book a flat early and potentially enjoy higher grants or bigger loans by the time they collect their keys.

2. How much is HDB downpayment for BTO, resale, and EC?

We'll cut to the chase on how much the downpayment will cost on your first HDB flat:

All you need to do is to multiply the percentage by the purchase price. For example, for a $400,000 BTO flat:

• If you take an HDB loan, your downpayment would be $100,000 (25 per cent) in CPF or cash.
• If you opt for bank loan, your downpayment would be $20,000 (5 per cent) in cash + $80,000 (20 per cent) in CPF.

Note that the $100,000 total downpayment for an HDB loan and bank loan doesn't differ; only the proportion you have to pay in cash does.

If $100,000 sounds a lot, it's because of new measures to cool the resale market. As of 20 August 2024, HDB announced the lowering of the loan-to-value (LTV) limit for HDB loans from 80 per cent to 75 per cent.

While it means you can borrow up to the same rate as banks, you can still offset the cost of your HDB flat with various housing grants, which have also been increased.

Do note that the table above shows the total downpayment amount you'll have to fork out. This total downpayment is split into 2 payments — one during the signing of the Agreement for Lease, and the other during key collection. Read more about this below!

3. Why are there 2 different types of HDB downpayment?

Your downpayment largely depends on which type of loan you take: HDB loan or bank loan.

Most people used to go for HDB loans as you could borrow up to 80 per cent of the flat price, so your downpayment is only 20 per cent and you can pay for it in full through your CPF. However, now that the LTV is 75 per cent, same as banks, you may want to think about your options.

There are still other factors to consider when taking a loan. HDB's home loan interest rate is quite high at 2.6 per cent. And depending on the interest rate environment, bank interest rates could be higher or lower than the HDB one when you apply for your loan.

So the key things you need to know about your HDB downpayment are:

• Loan-to-Value (LTV) Limit: The amount that you can borrow from HDB or the bank — both of which are now 75 per cent, as of 20 August 2024
• Downpayment: The outstanding amount after deducting the borrowing limit, which you can use your CPF to pay partly or fully
• Minimum cash downpayment: Only applies if you take up a bank loan, in which case it's five per cent.

We'll also cover Stamp Duty (BSD and/or ABSD). This is a fee (of up to four per cent) on top of the purchase price, which you must pay in cash first, then request a reimbursement from your CPF (so either way you're still paying for it).

4. [BTO] HDB downpayment for BTO flat

Imagine this: you're a "newly" wedded couple eager to move out of your respective parents' places despite tying the knot two years ago.

Both of you have finally decided on this beautiful 3-room BTO flat in Tampines, a mature estate, with easy access to amenities and attractions. It costs $400,000 — can you afford it?

Here's the downpayment breakdown for your HDB BTO flat:

5. [BTO] When do you have to pay your BTO flat downpayment?

After you book an HDB flat and pay the option fee, the HDB will get you to show up within nine months to sign the Agreement for Lease.

You will make the first portion of your downpayment at the signing of the Agreement for Lease. If you are taking out a bank loan, make sure you have obtained a valid Letter of Offer by then as you'll have to bring it to your appointment.

After that, you wait until your flat is built and then you can collect your keys. The balance downpayment must be paid when you pick up your keys. If all of the balance is covered by a loan, the HDB or your bank will disburse the money at this point.

Here's a breakdown of how much downpayment you'll pay at the two different stages:

6. [BTO] How much is my HDB downpayment under the staggered downpayment scheme?

You'll be happy to know that HDB also offers a staggered downpayment scheme. Under this scheme, you pay the same total amount of downpayment, and the downpayment is still split into two parts. However, you pay a smaller proportion upfront during the signing of the Agreement for Lease.

The conditions to be eligible for the staggered downpayment scheme are:

• You are both first-timer applicants, or you are a couple comprising a first-timer applicant and a second-timer applicant.
• You obtained a valid HFE letter on or before the younger applicant's 30th birthday.
• You have booked a 5-room or smaller flat.

OR

• You are downsizing to a smaller flat.
• You have booked an uncompleted 3-room or smaller flat in a non-mature estate.
• You have not sold or completed the sale of your existing flat at the time of your HFE letter application.

HDB will inform you if you are eligible for the staggered downpayment. There's no need to apply for it.

7. [BTO] How much is my HDB downpayment if I'm eligible for deferred income assessment?

Young couples eligible for deferred income assessment will pay an even smaller portion of the downpayment during the signing of the Agreement for Lease. Here are the eligibility requirements:

• Students/NSF: At least one of you must be be either a full-time student or National Servicemen (NSF), or have just completed full-time studies or National Service (NS) within the last 12 months before the HFE letter application.
• Age: At least one of you must be aged 30 or below at the point of the HFE letter application.
• Marital status: You must be married or be applying for a flat under the Fiance/ Fiancee Scheme.
• Household status: At least one of you must be a first-timer.

8. [BTO] Downpayment scenarios for BTO flats: How much do you pay upfront?

Trying to work out your actual cash outlay? Here are a few real-life scenarios to help you see how much downpayment you'll need for your BTO flat (assuming it costs $400,000), depending on your situation:

What this means for you:

Young couples (especially couples where one partner still in school or NS) can buy now and spread the big payments over a longer period-giving you precious time to build up your CPF or savings before you collect your keys.

Standard buyers will still need to set aside the usual 25 per cent upfront.

Tip: Not sure where you stand? Use the official HDB Flat Portal or CPF calculators to see your eligibility and grant amounts.

9. [Resale] HDB downpayment for resale flats

What if you don't want to wait a whole lifetime for a new BTO flat? Many of the conditions when buying a BTO flat apply to resale flats as well.

For simplicity's sake, let's imagine you're buying a 4-room resale flat in a mature estate like Bedok. At around $600,000, it's more expensive than new BTOs in non-mature estates, but hey, at least you can move in within the year.

However, unlike uncompleted BTO flats, you will not be eligible for HDB's staggered downpayment scheme. This means that you will have to cough up the $150,000 in cash or from your CPF when you sign the lease.

10. [EC] HDB downpayment for EC

Executive condominiums are technically HDB flats, but they're a whole different beast from BTO and resale flats.

Unlike BTOs and resale flats, you cannot apply for a HDB loan to purchase your EC. You'll have to go to the bank for that, and your downpayment will be much higher. The process largely follows that of the downpayment for a condo.

Here is the breakdown for a $1 million 3-room EC in a non-central neighbourhood:

The challenge arises from accruing $200,000 in your CPF and $50,000 in cash. Stamp duty is quite steep too, at $24,600-the fact that it's reimbursable from your CPF OA just means that you need that amount to begin with.

In total, you and your spouse need at least $74,600 in your bank accounts.

11. Should I get an HDB loan or bank loan?

As you can see, your HDB downpayment will vary significantly depending on whether you opt for an HDB or bank loan.

Cash-strapped Singaporeans would go for the HDB loan because you can use CPF to pay for the downpayment and not have to fork out any cash. 

Even though the HDB interest rate is currently, higher than that of bank loans, there's always a chance bank loan rates could creep up. HDB loans are fixed for the entire tenure of up to 25 years, meaning there is little to no fluctuation in your monthly instalments.

HDB is also more lenient in that you can choose to repay your loan early or even switch to another provider without penalty. However, bank interest rates are only locked in for two to three years, which means that you may need to refinance your loan every few years to keep on top of the best interest rates. 

12. FAQs

Do Permanent Residents (PRs) have to pay more downpayment?

The above calculations were made with Singapore citizens in mind. Singaporeans only need to pay buyer's stamp duty (BSD) for a first property purchase, so stamp duty does not affect the downpayment. PR couples, however, need to pay additional buyer's stamp duty (ABSD). This is usually five per cent of the property's price for a first home.

If you are a PR and your spouse is a Singaporean, you do not have to pay ABSD when making a HDB downpayment.

What determines the loan ceiling of my bank loan?

The HDB Loan-to-Value ratio (LTV) is currently 75 per cent. That means you can borrow a maximum of 75 per cent of the property price when you take out an HDB loan.

However, how much you can borrow depends on a couple of factors, including the following:

• Mortgage Servicing Ratio (MSR): Not more than 30 per cent of your gross monthly income can go towards repaying all property loans, including the one you are applying for.
• Total Debt Servicing Ratio (TDSR): Not more than 55 per cent of your gross monthly income can go towards repaying monthly debt obligations, including the loan you are applying for. This includes credit card debt, student loans and so on.

Does the new Plus housing model change anything?

From the Oct 2024 BTO sales launch onwards, a new class of BTO projects came into existence.

Unlike "standard" flats, which are run-of-the-mill HDB flats with the usual subsidies and restrictions we all know and love, Plus flats fall into a new category.

Plus flats are built in locations considered more attractive, such as in HDB town centres or new MRT stations. Such flats will be a bit pricier than the Standard flats, so the government will dish out more generous subsidies.

However, tighter rental restrictions will also apply, and you'll have to return HDB some money if/when you sell your flat. For the Oct 2024 BTO launch, Plus flats come with a 6 - 8 per cent subsidy clawback of the flat's resale or valuation price, whichever is higher.

The idea will be similar to the Prime Location Public Housing (PLH) model, except that these flats will not necessarily be in central or city fringe areas. Plus flats will enjoy less generous subsidies than PLH flats and also come with less onerous restrictions.

As far as downpayment and loans go, there's no change to the rules for Plus flats. These flats are just another type of BTO flat, and the usual BTO downpayment rules will apply.

13. How much HDB downpayment can you afford?

When you're eyeing your first home, it's tempting to look at flat prices and think, "Can I really afford this?" The good news: HDB, banks, and CPF all have clear rules to help you buy within your means. Here's how to work out what's safe for your budget:

1. Know your main affordability rules

Mortgage Servicing Ratio (MSR): For HDB loans, you can only use up to 30 per cent of your gross monthly income on your mortgage repayments.

Total Debt Servicing Ratio (TDSR): If you're taking a bank loan, all your monthly debt repayments-including your home loan-must stay within 55 per cent of your gross monthly income.

Loan-to-Value (LTV) Limit: HDB loans now cap at 75 per cent of your flat price, so you'll need to cover at least 25 per cent (via CPF and/or cash) upfront.

Minimum cash outlay: For bank loans, at least five per cent must be paid in cash, the rest can come from CPF.

2. Factor in the real upfront costs

Downpayment (we went through lots of scenarios above)

Stamp duty (use this IRAS residential property calculator)

Legal and administrative fees

Other one-time expenses (e.g., option fee, agent's commission, renovation deposit)

3. Check your CPF savings

Log in to your CPF portal to see how much you can use for your downpayment and monthly repayments.

Don't forget: You'll need to keep a minimum sum in your OA if you plan to use CPF for housing.

4. Use the official budget calculators

HDB Flat Portal Budget Calculator: Input your income and savings to get an instant estimate of how much flat you can afford and what your monthly repayments will look like.

CPF Housing Usage Calculator: See how much CPF you can use, and how much you need in cash.

Bank affordability calculators: Most major banks in Singapore offer free tools — helpful for cross-checking your numbers if you're considering a bank loan.

5. Tips to avoid over-stretching

Keep an emergency fund-aim for at least six months' expenses set aside, even after your downpayment.

Remember, monthly mortgage repayments should feel comfortable, not tight-plan for interest rate increases.

Factor in renovation, furnishing, and moving costs after the purchase.

Depending on where you are at in your property journey, home valuation tools such as HomerAI from property technology start-up OhMyHome might also help. If you're a total newbie, you may use its GPT function to answer all your burning property questions. There's no judgement if you still need help understanding more about downpayments.

For those ready to sell your current home and start a new chapter in your life, you may use the platform to get an estimated home valuation and cash proceeds. 

You may even use it to see your neighbour's transacted prices, as well as other properties in the area. These numbers are updated monthly, so you can track the upward/downward movement of your home value and property transaction prices in their area. Honestly, it's pretty handy even if you're not doing any property-related legwork and just feeling a little kaypoh.

[[nid:728114]]

This article was first published in MoneySmart.