Everything You’ve Ever Needed to Ask About HDB Downpayments

Read this complete guide to HDB downpayments for the answers to everything you need to know - including rates, rules and how it all works. 

Whether you’re looking to get into the real estate game, or seeking to buy your very first flat, you’re probably wondering if your finances are up to the task. To find out, you’ll need to know much you’ll need to put up for an HDB downpayment. 

We’ve got you covered. Here’s a complete guide to HDB downpayment for a BTO flat, resale flat, or an executive condominium, including rates, rules and how it all works.

How much do you have to pay in downpayment when buying an HDB flat?

How much downpayment you have to pay depends on several factors, so it’s difficult to give a straightforward answer. There are two main factors that determine your downpayment: 

• How are you funding your mortgage - HDB loan or bank loan?
• What type of flat are you buying - BTO, resale flat or executive condominium (EC)?

Downpayment with an HDB loan: 20% of the purchase price

Downpayment when buying a BTO flat with an HDB loan

Along with the new HDB cooling measures that were announced on 29 September 2022, the Loan-To-Value (LTV) Ratio has been changed from 85% to 80%, for all flat applications received on or after 30 September 2022. This means that the downpayment has also increased from 15% previously to 20%.

This 20% downpayment can be paid in cash, using your CPF Ordinary Account balance (CPF-OA), or any combination of the two. 

As standard practice, you will pay the downpayment during the signing of the Agreement of Lease. 

However, if you're buying a new HDB flat, you are eligible for the Staggered Downpayment Scheme, you may opt for the downpayment to be paid in two tranches: 5% during lease agreement signing, which is about six months after you've booked the flat, and 15% when collecting your keys, which is typically  

Downpayment when buying a resale flat with an HDB loan

The details for buying a resale flat with an HDB loan are largely the same. 

The minimum downpayment you need to pay remains at 20% of the purchase price, which can once again be paid in cash, with your CPF-OA, or a mix of both. 

However, when you pay is slightly different. Once your financial plan is confirmed, an online transfer of your CPF funds will be initiated. 

If you’re paying with cash, you’ll need to submit a Cashier’s Order during the resale completion appointment. 

Downpayment with buying an EC with an HDB loan

Purchases of ECs are not eligible for HDB loans, so you’ll have to use a bank loan. See the next section for details.

Downpayment with a bank loan: 25% to 45% of the purchase price

Downpayment when buying a BTO flat with a bank loan

If you’re using a bank loan, you need to put in a downpayment of at least 25% of the purchase price. 

Of this, 20% can be paid using your CPF-OA funds, while the remaining 5% will have to be paid in cash.

With a bank loan, you can only borrow between 55% and 75% of the purchase price of your BTO flat. This means that there is still a remaining sum (from 5% to 35%, depending on your loan amount) to be settled. 

This remainder is paid when you collect your keys, and you can use your CPF, cash, or a combination of the two.

Downpayment when buying a resale flat with a bank loan

The downpayment when purchasing a resale flat with a bank loan is rather high - you’ll need to clear between 25% and 45% of the purchase price. 

Fortunately, you can fund the downpayment largely with your CPF-OA balance. 

If the value of your bank loan is up to 75% of the purchase price, your downpayment will be 25%. You must pay at least 5% in cash, with the remaining covered by your CPF-OA balance. 

If the value of your bank loan is up to 55% of the purchase price, your downpayment will be a hefty 45%. You must pay at least 10% in cash, with the remaining 35% paid using your CPF savings.

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Downpayment when buying an EC with a bank loan

The payment structure is the same when buying an EC using a bank loan.

As with resale flats, you may only borrow between 55% and 75% of your unit’s purchase price when taking out a bank loan. The remainder will have settled in your downpayment.

For bank loans up to 75% of the purchase price, your downpayment will be 25%. At least 5% must be paid in cash, with the remaining covered by your CPF-OA balance. 

For bank loans up to 55% of the purchase price, your downpayment will be 45%. At least 10% must be paid in cash, with the remaining 35% paid via your CPF savings.

What determines the loan ceiling of my bank loan?

Assuming that you are within your Mortgage Servicing Ratio and the Total Debt Servicing Ratio, the upper limit of your bank loan depends on two factors: the tenure of your loan, and how many housing loans you have at the point of application. 

See the following table for a quick summary.

When do I have to make the downpayment for my HDB flat?

Now that you know the downpayment amounts for different HDB flats and scenarios, you may be wondering when exactly you need to pay it 

We’ve included the info in the table at the beginning of the article, but to save you the trouble of scrolling all the way up, here’s a quick summary.