HDB Affordability Calculator
Calculate how much HDB flat you can afford in Singapore - MSR, TDSR, loan eligibility, and monthly installments
Age affects loan tenure and eligibility
Only SC and PR can buy HDB flats
Before CPF and tax deductions
All existing loan repayments
For downpayment and installments
Maximum 25 years for HDB loan, 30 years for bank loan
HDB Loan Results
Interest Rate Stress Test
See how interest rate increases affect your monthly payments
| Scenario | Interest Rate | Monthly Payment | Change |
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Important Disclaimer
This calculator is for estimation purposes only. Actual loan eligibility and amounts may differ based on:
- Detailed financial assessment by HDB or banks
- Credit history and credit score
- Specific property valuation
- Property remaining lease duration
- Other financial obligations not captured
- Changes in regulations and interest rates
Data Privacy: All calculations are performed locally in your browser. No personal data is stored or transmitted to any server.
For Official Information: Please consult HDB, banks, and licensed financial advisors for accurate assessments.
About HDB Affordability Calculator
The HDB Affordability Calculator is a comprehensive financial planning tool designed specifically for prospective home buyers in Singapore. Whether you're a first-time buyer looking at Build-To-Order (BTO) flats or considering resale HDB properties, this calculator helps you understand your true purchasing power based on current Housing & Development Board (HDB) regulations and Monetary Authority of Singapore (MAS) guidelines.
This calculator takes into account multiple critical factors including your age, income, existing financial commitments, CPF Ordinary Account savings, and loan preferences. It performs real-time calculations to show you the maximum property price you can afford, required downpayment breakdown, and realistic monthly installments under both HDB and bank loan scenarios.
Understanding your affordability is the first crucial step in the home-buying journey. Making an informed decision based on accurate financial projections can help you avoid overextending financially while ensuring you find a home that truly fits your budget and lifestyle needs.
The calculator incorporates 2026 regulations including the Mortgage Servicing Ratio (MSR) for HDB loans, Total Debt Servicing Ratio (TDSR) for bank loans, Loan-to-Value (LTV) limits, and CPF usage rules. All calculations are transparent, showing you exactly how your affordability is determined.
How to Use This Calculator
- Enter Your Personal Details: Start by entering your age and citizenship status. These factors affect loan eligibility, tenure limits, and available loan types. Singapore Citizens typically have more favorable loan conditions compared to Permanent Residents.
- Input Financial Information: Enter your monthly gross income (before CPF deductions), any existing monthly loan commitments (car loans, personal loans, credit card installments), and your current CPF Ordinary Account balance. Be accurate as these directly impact your borrowing capacity.
- Set Loan Preferences: Choose between HDB loan or bank loan, set your desired loan tenure (up to 25 years for HDB, 30 years for bank loans), and if applicable, enter the bank loan interest rate you've been quoted or expect to get.
- View Comprehensive Results: The calculator instantly displays your maximum affordable property price, loan amount, downpayment breakdown (CPF vs cash), and estimated monthly installments. It also shows whether you're within the MSR or TDSR limits.
- Compare Loan Options: Use the comparison feature to see HDB loan and bank loan side-by-side. This helps you understand the trade-offs between lower interest rates (HDB) and higher loan amounts (bank).
- Review Stress Test: Check how increases in interest rates would affect your monthly payments. This helps you plan for potential rate increases and ensures you can still afford the property if rates rise.
- Consider the Warnings: Pay attention to any warning messages about exceeding debt servicing ratios or age-related tenure limits. These indicate areas where you might need to adjust your expectations or financial planning.
Understanding Mortgage Servicing Ratio (MSR)
What is MSR? The Mortgage Servicing Ratio (MSR) is a key affordability measure used for HDB housing loans. It limits the monthly housing loan installment to a maximum of 30% of the borrower's gross monthly income. This regulation, implemented by HDB, ensures that buyers don't overextend themselves financially when purchasing an HDB flat.
How MSR is Calculated: MSR = (Monthly Loan Installment ÷ Gross Monthly Income) × 100%. For example, if your gross monthly income is $5,000, your maximum monthly loan payment under MSR would be $1,500 (30% of $5,000).
Why MSR Matters: The MSR cap protects home buyers from taking on mortgage payments they cannot comfortably afford. By limiting loan installments to 30% of income, it ensures buyers have sufficient funds for other essential expenses like food, transport, utilities, insurance, and savings.
MSR Assessment Considerations: When calculating MSR, HDB uses a stress-tested interest rate floor of 3.0% (even though the actual HDB concessionary rate is currently 2.6%). This prudent approach ensures you can still afford payments if interest rates rise in the future.
Impact on Your Loan: The MSR directly determines your maximum loan amount for HDB loans. If you have a higher income, you can take a larger loan. However, if you have existing debt obligations, these reduce your effective income for MSR calculation purposes, thus lowering your borrowing capacity.
Understanding Total Debt Servicing Ratio (TDSR)
What is TDSR? The Total Debt Servicing Ratio (TDSR) is a comprehensive debt limit imposed by the Monetary Authority of Singapore (MAS) for bank housing loans. Unlike MSR which only considers your housing loan, TDSR takes into account ALL your debt obligations including credit card debt, car loans, personal loans, student loans, and other financial commitments. The TDSR is capped at 55% of your gross monthly income.
How TDSR is Calculated: TDSR = (Total Monthly Debt Obligations ÷ Gross Monthly Income) × 100%. For example, if you earn $6,000 per month and have existing debts totaling $1,000 monthly, you can only allocate up to $2,300 ($6,000 × 55% - $1,000) for your housing loan installment.
Why TDSR is Stricter: Bank loans typically offer higher Loan-to-Value ratios and longer tenures than HDB loans, which could lead to higher overall debt levels. The TDSR framework ensures that borrowers maintain a healthy debt-to-income ratio across all obligations, not just housing.
TDSR vs MSR Comparison: While TDSR (55%) appears more lenient than MSR (30%), the key difference is that TDSR includes ALL debts. This means if you have substantial non-housing debt, your actual capacity to take on a housing loan may be lower under TDSR than MSR. Conversely, if you have no other debts, TDSR allows you to allocate more income to housing compared to MSR.
Planning Tip: Before applying for a bank loan, consider paying down or consolidating existing high-interest debts. Reducing your non-housing debt obligations can significantly increase your TDSR capacity and thus your maximum loan amount for property purchase.
HDB Loan vs Bank Loan: Detailed Comparison
| Feature | HDB Loan | Bank Loan |
|---|---|---|
| Loan-to-Value (LTV) | Up to 80% (simulation purpose) | Up to 75% |
| Interest Rate | 2.6% (concessionary rate) | 3.5% - 4.5% (market rate) |
| Debt Limit | MSR: 30% of income | TDSR: 55% of income |
| Maximum Tenure | 25 years or age 65 | 30 years or age 75 |
| Rate Stability | Stable (pegged to CPF OA + 0.1%) | Variable (market-driven) |
| Prepayment Penalty | None | Varies (lock-in periods common) |
| Refinancing | Can refinance to bank anytime | Cannot refinance to HDB loan |
| Eligibility | Singapore Citizens/PR only | All buyers (including foreigners) |
| Best For | Lower income, first-time buyers, stability seekers | Higher income, investment-focused, flexibility seekers |
When to Choose HDB Loan: HDB loans are typically better if you prioritize interest rate stability and lower rates. The 2.6% concessionary rate is significantly lower than most bank rates, resulting in substantial interest savings over the loan tenure. The predictable rate (pegged to CPF OA rate) makes long-term financial planning easier.
When to Choose Bank Loan: Bank loans may be preferable if you need to borrow more (limited by TDSR's 55% vs MSR's 30%) or require longer tenure (up to 30 years vs 25 years). This is particularly useful for higher-income buyers purchasing more expensive properties. Additionally, bank loans offer more flexibility in refinancing to take advantage of competitive promotional rates.
Important Consideration: Once you refinance from an HDB loan to a bank loan, you cannot switch back to an HDB loan. This is a one-way decision, so carefully consider your long-term financial strategy before making the switch.
CPF Usage for HDB Purchase
CPF Ordinary Account (OA) Basics: Your CPF Ordinary Account savings can be used for purchasing HDB flats, including paying for the downpayment and monthly housing loan installments. This significantly reduces the cash outlay required for homeownership and leverages your retirement savings for property investment.
Downpayment Requirements: For HDB flats, a minimum 20% downpayment (if taking 80% loan) or 25% downpayment (if taking 75% bank loan) is required. The first 5% must be paid in cash, while the remaining can be paid using CPF OA savings. For example, on a $500,000 flat with HDB loan, you need at least $25,000 cash and can use CPF for the remaining $75,000 of the $100,000 downpayment.
Valuation Limit (VL): CPF usage is capped at the Valuation Limit, which is the lower of the purchase price or the property's market value. This prevents over-leveraging CPF on overpriced properties. For example, if you agree to pay $550,000 for a flat valued at $500,000, you can only use CPF up to $500,000.
Withdrawal Limit (WL): The total amount of CPF you can use over the property's lifetime is capped at 120% of the Valuation Limit. Once you reach this limit, all future loan payments must be made in cash. For a $500,000 property, the WL is $600,000. After using $600,000 in CPF, you must pay cash.
Remaining Lease Requirement: To use CPF for an HDB purchase, the property must have at least 20 years of remaining lease. Additionally, for maximum CPF usage, the remaining lease must be able to cover the youngest buyer until age 95. For example, if you're 30 years old, the flat should have at least 65 years remaining lease (95 - 30) for full CPF usage. Properties with shorter leases have prorated CPF usage limits.
Accrued Interest: When you use CPF for housing, you're "borrowing" from your retirement savings. Upon selling the property, you must refund the CPF used plus accrued interest (at the CPF OA rate) back to your CPF account. This ensures your retirement savings are preserved. For instance, if you used $200,000 in CPF and held the property for 10 years, you might need to refund approximately $255,000 (principal plus accumulated interest).
Strategic Planning: While using maximum CPF seems attractive (less cash outlay), consider balancing CPF usage with cash payments. Preserving CPF allows it to compound at favorable interest rates (2.5% for OA) for retirement. Additionally, using more cash now means less need to refund CPF upon sale, giving you more flexibility in your next property purchase.
Key Financial Terms Explained
Loan-to-Value (LTV) Ratio
The LTV ratio represents the percentage of the property's value that can be financed through a loan. For HDB loans, the LTV is up to 80% (for simulation purposes; official current limit is 75%), while bank loans offer up to 75% LTV. This means for a $500,000 property, you can borrow up to $400,000 (80% LTV) or $375,000 (75% LTV), with the remainder required as downpayment.
Example: Property price $500,000, LTV 80% = Maximum loan $400,000, Downpayment $100,000
Mortgage Servicing Ratio (MSR)
MSR caps your monthly housing loan payment at 30% of your gross monthly income. This applies only to HDB housing loans and ensures you don't overstrain your finances. Income here refers to your salary before CPF deductions and taxes. If you earn $5,000 monthly, your maximum loan installment is $1,500.
Example: Income $6,000/month, MSR 30% = Maximum housing installment $1,800/month
Total Debt Servicing Ratio (TDSR)
TDSR limits your total monthly debt obligations (housing loan + car loan + personal loans + credit cards, etc.) to 55% of your gross monthly income. Applied to bank loans, TDSR provides a comprehensive view of your debt affordability. If you earn $6,000 and have $500 in existing debts, you can allocate up to $2,800 ($6,000 × 55% - $500) to a housing loan.
Example: Income $8,000/month, existing debts $1,000/month, TDSR 55% = Maximum housing installment $3,400/month
CPF Ordinary Account (OA)
One of three CPF accounts, the OA is designed for housing, insurance, investment, and education. Savings earn at least 2.5% interest per annum (with an extra 1% on the first $60,000). OA funds can be used for property downpayments and monthly loan installments, reducing cash requirements significantly.
Current balance earning: 2.5% base + 1% extra (on first $60,000) = 3.5% on qualifying amount
Concessionary Interest Rate
HDB offers a concessionary (subsidized) interest rate for housing loans, currently 2.6% per annum. This rate is pegged at 0.1% above the CPF Ordinary Account interest rate, providing stability and savings compared to market rates. This translates to lower monthly installments and less total interest paid over the loan tenure.
Comparison: HDB 2.6% vs Bank 4.0% on $300,000/25-year loan = Save ~$250/month or $75,000 total interest
Stress Test Interest Rate
A prudential measure where lenders assess your loan eligibility using a higher interest rate than the actual rate. For HDB loans, a 3.0% floor is used for assessment (actual rate is 2.6%). For bank loans, MAS requires a 4.0% medium-term stress test rate. This ensures you can still afford the loan if interest rates rise.
Purpose: Protects borrowers from potential rate hikes and ensures sustainable homeownership
Real-World Calculation Examples
Example 1: Young Couple - First HDB Purchase
Profile:
- • Ages: 28 and 30 years old
- • Combined Monthly Income: $7,000
- • CPF OA Balance: $80,000
- • No existing debts
- • Preferred: HDB Loan, 25 years
Results:
- • Max Property Price: $485,000
- • Max Loan (80% LTV): $388,000
- • Downpayment: $97,000
- • Cash Required: $24,250 (5%)
- • CPF Usage: $72,750
- • Monthly Installment: $2,100 (30% of income - MSR limit)
Analysis: This couple can comfortably afford a 4-room BTO flat. Their CPF savings cover most of the downpayment, requiring minimal cash outlay. The MSR-compliant monthly installment leaves them with $4,900 for other expenses.
Example 2: Mid-Career Professional - Resale Flat
Profile:
- • Age: 40 years old
- • Monthly Income: $9,000
- • CPF OA Balance: $150,000
- • Car Loan: $800/month
- • Considering: Bank Loan, 25 years
Results:
- • Max Property Price: $615,000
- • Max Loan (75% LTV): $461,250
- • Downpayment: $153,750
- • Cash Required: $30,750 (5%)
- • CPF Usage: $123,000
- • Monthly Installment: $2,875 (under TDSR 55%)
Analysis: Bank loan provides higher borrowing capacity due to TDSR's 55% limit. However, the higher interest rate (4% vs 2.6%) means more interest paid over time. The existing car loan reduces available TDSR capacity by $800/month.
Example 3: Single Buyer - Maximizing Affordability
Profile:
- • Age: 35 years old
- • Monthly Income: $5,500
- • CPF OA Balance: $100,000
- • Personal Loan: $300/month
- • Comparing: HDB vs Bank Loan
HDB Loan Option:
- • Max Property Price: $358,000
- • Monthly Installment: $1,650 (MSR 30%)
- • Total Interest (25 years): $132,000
Bank Loan Option:
- • Max Property Price: $412,000
- • Monthly Installment: $2,275 (TDSR 55%)
- • Total Interest (25 years): $217,500
Analysis: Bank loan allows 15% higher property price but costs $85,500 more in interest. HDB loan offers better affordability with lower monthly payments and substantial interest savings, though limiting maximum property price. Recommendation: HDB loan for stability and savings, unless specific property requirement exceeds HDB loan capacity.
Important Notes and Considerations
⚠️ Regulation Changes
This calculator uses 2026 regulations. Note that in 2026, the official HDB LTV limit is 75%, but this tool supports up to 80% for simulation and comparison purposes. Always verify current regulations with HDB and MAS before making decisions.
💰 Additional Costs Not Included
This calculator focuses on loan affordability. Remember to budget for: Stamp Duty (BSD), Legal Fees, Valuation Fees, Fire Insurance, Home Protection Scheme (HPS), renovation costs, and moving expenses. These can add $15,000-$30,000 to your total costs.
📊 Income Assessment
For loan applications, lenders assess income stability. If you're self-employed, income is averaged over 2-3 years. Commission-based income may be discounted. Variable bonuses might not be fully counted. Ensure you have proper documentation (CPF statements, tax returns, payslips).
🏠 Property Factors
Remaining lease affects loan approval and CPF usage. Properties with less than 60 years remaining lease face restrictions. Location, flat type, and market conditions influence valuation. Always get professional valuation before committing to purchase price.
🔄 Refinancing Considerations
You can refinance from HDB to bank loan anytime, but NOT from bank back to HDB. Consider this carefully. Refinancing involves costs (legal fees, valuation fees) typically $2,000-$3,000. Only worthwhile if interest savings exceed refinancing costs.
👥 Joint Applicants
For couples or joint applicants, combine incomes and CPF savings for better affordability. However, both applicants' debts and ages are also considered. The younger applicant's age determines maximum loan tenure, while oldest applicant might limit tenure if significantly older.
Frequently Asked Questions
What is the difference between MSR and TDSR?
MSR (Mortgage Servicing Ratio) limits your housing loan payment to 30% of income and applies to HDB loans. TDSR (Total Debt Servicing Ratio) limits all debt payments to 55% of income and applies to bank loans. MSR only considers housing debt, while TDSR includes all debts like car loans, credit cards, and personal loans. For someone with no other debts, TDSR allows higher housing loan payments than MSR.
Can I use 100% CPF for my HDB downpayment?
No, you cannot use 100% CPF for the downpayment. The first 5% of the purchase price must be paid in cash. The remaining 15% (for 20% total downpayment with HDB loan) or 20% (for 25% total downpayment with bank loan) can be paid using CPF Ordinary Account savings. For example, on a $500,000 flat, you need at least $25,000 in cash, and can use CPF for up to $75,000-$100,000 of the downpayment depending on your loan type.
How does my age affect loan eligibility?
Your age affects maximum loan tenure in three ways. First, HDB loans cannot extend beyond age 65 (maximum 25 years or until age 65, whichever is shorter). Second, bank loans cannot extend beyond age 75 (maximum 30 years or until age 75, whichever is shorter). Third, shorter tenure means higher monthly installments, which may exceed MSR or TDSR limits, reducing your maximum affordable property price. For example, a 45-year-old can only take a 20-year HDB loan (65 - 45), not the full 25 years.
Should I choose HDB loan or bank loan?
Choose HDB loan if you prioritize lower interest rates (2.6% vs 3.5-4.5%) and rate stability, which saves significant interest over time. Choose bank loan if you need to borrow more (TDSR 55% vs MSR 30% allows higher loan amounts), require longer tenure (30 vs 25 years), or want flexibility to refinance. Consider your income level, debt situation, and long-term financial goals. Higher-income buyers often benefit more from bank loans despite higher rates, while moderate-income buyers save more with HDB loans.
What happens if interest rates increase?
For HDB loans, the concessionary rate (currently 2.6%) is pegged to CPF OA rate plus 0.1%, so increases are gradual and predictable. For bank loans, rates can change based on market conditions, potentially increasing your monthly payments significantly. Use the stress test feature in this calculator to see how +1% or +2% rate increases affect your payments. If rates rise, you may struggle with affordability, which is why lenders use stress test rates (3.0% for HDB, 4.0% for banks) to assess your eligibility. Always budget with some buffer for potential rate increases.
Can Permanent Residents (PR) take HDB loans?
Yes, Permanent Residents can take HDB loans, but with some restrictions compared to Singapore Citizens. PRs face stricter resale levy if they previously owned HDB flats. They can only purchase resale flats (not BTO) unless buying with a Singapore Citizen spouse. The loan amount, MSR, and interest rates are the same for PR and Citizens. However, PRs should verify their specific eligibility with HDB as policies can change based on government housing priorities.
What is the CPF Withdrawal Limit (WL)?
The CPF Withdrawal Limit is the maximum CPF amount you can use for a property over its lifetime, set at 120% of the Valuation Limit (lower of purchase price or market value). For example, if you buy a $500,000 property, your WL is $600,000. This includes downpayment, monthly installments, and any other CPF usage. Once you reach this limit, all future payments must be in cash. The WL ensures you don't deplete your entire CPF retirement savings on housing. Track your CPF usage carefully if you plan to hold the property long-term or use CPF heavily for installments.
How is the maximum loan amount calculated?
Maximum loan amount is determined by the lower of two calculations. First, LTV limit: 80% of property value for HDB loans (75% for banks). Second, debt servicing limit: monthly payment that keeps you within MSR (30% of income for HDB) or TDSR (55% of income minus other debts for banks), calculated backwards using stress test interest rates to determine affordable loan quantum. For example, with $6,000 income and HDB loan: MSR allows $1,800/month payment, which at 3.0% stress rate over 25 years equals roughly $356,000 maximum loan.
Do I need to pay back CPF when I sell my flat?
Yes, you must return all CPF principal used plus accrued interest (calculated at CPF OA rates) when you sell your HDB flat. This amount is called the "CPF refund". For example, if you used $200,000 CPF and held the property for 15 years with 2.5% annual interest, you must refund approximately $289,000. This refund goes back to your CPF OA, protecting your retirement savings. Only the remaining sale proceeds (after CPF refund and loan settlement) is yours in cash. If sale proceeds are insufficient, you must top up from cash.
Can I refinance from HDB loan to bank loan later?
Yes, you can refinance from HDB loan to bank loan anytime without restrictions, as long as you meet bank eligibility criteria. However, this is a one-way decision - once you switch to a bank loan, you cannot refinance back to an HDB loan. Refinancing makes sense if bank rates drop significantly below HDB rates, or if you need to unlock equity through higher LTV. Consider refinancing costs ($2,000-$3,000 in fees) and ensure interest rate savings exceed these costs. Also, remember bank loans have rate volatility unlike HDB's stable concessionary rate.
What other monthly commitments are included in TDSR?
TDSR includes ALL monthly debt obligations: housing loan, car loans, motorcycle loans, personal loans, student loans, credit card minimum payments, overdraft facilities, renovation loans, and any other financial commitments. Even if you're a loan guarantor for someone else, that obligation counts. To maximize your housing loan capacity under TDSR, consider paying off high-interest debt first, especially credit cards and personal loans. Some buyers strategically delay car purchases or pay off existing loans before applying for housing loans to improve TDSR.
How does remaining lease affect my loan and CPF usage?
Remaining lease affects your housing purchase in three critical ways. First, minimum 20-year lease required to use CPF. Second, for full CPF usage, remaining lease must cover youngest buyer until age 95 (e.g., 30-year-old needs 65 years remaining lease). Properties with shorter leases face prorated CPF usage limits. Third, loan tenure cannot exceed remaining lease minus 20 years. For example, a flat with 55 years remaining lease limits loan tenure to 35 years (55 - 20), though HDB's 25-year and age limits may impose further restrictions. Older flats with less than 60 years remaining lease have significantly reduced loan and CPF access, affecting affordability.
Is this calculator accurate for my actual loan approval?
This calculator provides reliable estimates based on standard regulations and formulas, but actual loan approval depends on additional factors not captured here. Banks and HDB conduct detailed credit assessments, verify income documentation, evaluate employment stability, review credit bureau reports, and perform property-specific valuations. Your credit score significantly impacts approval and may affect interest rates offered. Use this calculator for initial planning and budgeting, but always get pre-approval from lenders before committing to property purchases. The calculator is most accurate for salaried employees with stable income and good credit; less accurate for self-employed individuals or those with complex income structures.