A lender answers three separate questions: how much of the property’s value it may finance, how much debt your assessed income supports, and whether its own underwriting accepts the application. Passing one test does not guarantee the other two.
Mortgage payment and debt-ratio calculator
Use the expected loan amount, not the property price. Test the payment at both the quoted rate and the lender’s affordability rate.
This scenario is within the displayed ratio caps.
Planning estimate, not a loan offer. The effective assessment rate is never lower than the current 3% HDB or 4% bank floor entered into this model. HDB or a bank may use a higher rate, haircut income, count additional debts or lend less. MSR does not apply to every private-property loan; the calculator labels it accordingly.
The current rules at a glance
- The HDB concessionary housing-loan rate is 2.6% a year for 1 July to 30 September 2026. It is pegged 0.1 percentage point above the CPF Ordinary Account rate and reviewed quarterly.
- An eligible HDB loan can finance up to 75% of the applicable price or value.
- A first bank housing loan can also have a maximum 75% LTV, subject to debt, tenure, age, valuation and underwriting.
- The Mortgage Servicing Ratio is capped at 30% of gross monthly income for HDB flats and qualifying EC purchases.
- The Total Debt Servicing Ratio is capped at 55% of gross monthly income for bank property loans.
- Banks assess residential mortgages using at least 4%, or a higher applicable thereafter rate. HDB uses the higher of its prevailing rate and a 3% floor when computing eligible loan size.
The 3% and 4% figures are assessment rates, not promises about the interest actually charged.
HDB loan or bank loan?
| Question | HDB housing loan | Bank housing loan |
|---|---|---|
| Available for | Eligible HDB-flat buyers | HDB, EC and private-property buyers, subject to the bank |
| Rate | 2.6% for Jul–Sep 2026 | No single market rate; fixed and floating packages vary |
| Base maximum LTV | Up to 75% | Up to 75% with no outstanding housing loan |
| Cash within a standard 25% balance | No prescribed 5% cash component; CPF OA and cash may be used, subject to rules | At least 5% of purchase price in cash in the ordinary 75% LTV case |
| CPF OA | Available OA is generally used first, although buyers may each retain up to S$20,000 | Borrower chooses the amount, within CPF limits |
| Early repayment | No lock-in or early-redemption penalty | Lock-in, redemption charge or subsidy clawback may apply |
| Switching later | Can refinance to a bank, subject to approval | Cannot switch back to an HDB loan |
An HDB loan is not automatically cheaper. Its attractions include a transparent rate mechanism, no ordinary 5% compulsory cash component and freedom to repay early. A bank package may start lower, but compare the lock-in, thereafter rate, SORA spread, reset timing, repricing fee, partial-repayment rules and legal-subsidy clawback.
LTV, affordability and approval are separate
| Outstanding housing loans | Standard maximum bank LTV | Lower maximum | Minimum cash |
|---|---|---|---|
| None | 75% | 55% | 5% at 75% LTV; 10% at 55% |
| One | 45% | 25% | 25% |
| Two or more | 35% | 15% | 25% |
The lower column generally applies when the tenure exceeds 30 years, exceeds 25 years for an HDB flat, or runs beyond the relevant age-65 test. Bank tenure is capped at 30 years for an HDB flat and 35 years for non-HDB property.
An HDB-issued loan is generally capped at the shortest of 25 years, 65 minus the applicants’ average age and the remaining lease minus 20 years.
Price, value and cash over valuation
Suppose a resale flat costs S$700,000 but HDB values it at S$680,000. A 75% loan is based on the lower value, producing S$510,000. The buyer therefore supplies S$190,000 toward the price. The S$20,000 difference is Cash Over Valuation and cannot be financed with the housing loan or CPF.
With a standard bank loan, at least S$35,000 is the 5% cash component and the S$20,000 COV is also cash. The remaining S$135,000 can come from CPF OA and/or more cash, subject to CPF rules. HDB resale option payments also require cash but form part of the price; do not count them twice.
MSR and TDSR test different things
MSR divides the assessed housing instalment by gross monthly income. Its 30% cap applies to HDB flats and specified EC purchases, whether the lender is HDB or a bank.
TDSR divides the assessed mortgage payment plus other monthly debt by gross monthly income. Its 55% cap applies to bank property loans. Relevant debts can include car, personal and education loans, other mortgages and credit-card obligations.
Financial institutions also apply at least a 30% haircut to qualifying variable income such as commissions, bonuses and allowances. The simplified calculator above does not make that adjustment.
On a S$510,000, 25-year loan with S$9,000 income and S$700 other debt, the 3% HDB assessment payment is about S$2,418: 26.9% MSR. At a 4% bank assessment rate the payment is about S$2,692: 29.9% MSR and 37.7% TDSR. Passing these simplified ratios does not guarantee approval.
Test the loan after the attractive rate disappears
| Rate held for illustration | Monthly payment | Total interest over 25 years |
|---|---|---|
| 2.6% | S$2,314 | S$184,114 |
| 3.5% | S$2,553 | S$255,954 |
| 4.5% | S$2,835 | S$340,424 |
The 3.5% and 4.5% figures are stress scenarios, not forecasts or current bank quotations. The move from 2.6% to 4.5% adds about S$521 a month on this loan.
CPF OA can fund a home, but it still has a cost
Eligible CPF Ordinary Account savings may be used for downpayments, instalments, Buyer’s Stamp Duty, legal fees and Home Protection Scheme premiums. Availability depends on the property, financing, value, remaining lease and owners’ ages.
A property generally needs more than 20 years of remaining lease before CPF can be used. If the lease does not cover the youngest CPF user to age 95, the usable amount may be prorated. For a bank-financed home, usage beyond the basic Valuation Limit up to 120% may require the applicable Basic Retirement Sum to be set aside.
Use CPF Board’s calculator for the actual property. When the home is sold, the owner generally refunds principal used, eligible grants used and the interest those amounts would have earned in CPF. That accrued interest makes CPF an alternative source of funds, not a discount on the purchase.
If a home is sold at market value and the proceeds after repaying the housing loan cannot satisfy the required CPF refund, the owner generally need not top up the shortfall in cash. Home Protection Scheme cover is generally compulsory when CPF pays instalments on an HDB flat.
A practical loan checklist
- Obtain the HFE outcome for an HDB purchase or a current bank in-principle assessment.
- Calculate loan size from the lower of price and valuation.
- Separate compulsory cash, CPF and cash over valuation.
- Test the payment at the quoted, assessment and stress rates.
- Compare bank packages through and after the lock-in period.
- Check CPF lease and retirement-sum limits for the property.
- Keep an emergency payment buffer instead of emptying both cash and OA.
- Recalculate after any change to price, value, income, debt or package.
A 75% maximum LTV and a ratio below the cap are not promises to lend. Use the HFE letter or a lender’s current written assessment before committing to an option.
Related guides
Primary sources
- CPF Board — CPF and HDB loan rates, July to September 2026
- CPF Board — HDB loan or bank loan
- HDB — Housing loan from HDB
- MAS — Mortgage Servicing Ratio and Total Debt Servicing Ratio
- MAS — Housing-loan tenure and loan-to-value limits
- MAS — Calculating TDSR for property loans
- HDB — Request for Value for a resale flat
- CPF Board — How much CPF can be used for a home
- CPF Board — CPF housing usage calculator
- CPF Board — CPF refund when selling or transferring property
- CPF Board — HDB option fee and housing expenses
- IRAS — Mortgage duty
Last fact-checked: 3 September 2026. Rules, fees and official pages can change; check the linked source before acting.