# How much HDB flat can you afford? Price, downpayment, CPF and cash explained

> How your income turns into a maximum flat price under MSR, TDSR and the 75% LTV limit, how much of the downpayment can come from CPF, what else you must budget for, and how to stress-test the monthly instalment.

- Tool: [HDB Affordability Calculator (MSR & TDSR)](https://toolsg.com/en/hdb-affordability-calculator)
- Language: en (available: en, zh, ms, ta)
- Last verified against official sources: 2026-10-16
- Source site: ToolSG — a planning guide, not official or financial advice. Cite the agencies listed under Sources.

## Key figures at a glance

| Fact | Value | Source |
| --- | --- | --- |
| Monthly instalment cap (MSR) | 30% of gross monthly income — Applies to HDB flats with an HDB or a bank loan. | [MAS](https://www.mas.gov.sg/regulation/explainers/new-housing-loans/msr-and-tdsr-rules) |
| All-debt cap for bank loans (TDSR) | 55% of gross monthly income | [MAS](https://www.mas.gov.sg/regulation/explainers/new-housing-loans/msr-and-tdsr-rules) |
| Maximum loan-to-value (LTV) | 75% — so at least 25% downpayment — For HDB loans and first bank loans since 20 Aug 2024. | [HDB](https://www.hdb.gov.sg/cs/infoweb/business/estate-agents-and-salespersons/letters-to-keos/Measures-to-Cool-the-HDB-Resale-Market-and-Provide-Greater-Support-for-First-time-Home-Buyers) |
| Rates used to size the loan | 3% (HDB loan) / at least 4% (bank loan) — You pay 2.6% on an HDB loan, or your bank package rate. | [HDB / MAS](https://www.hdb.gov.sg/residential/buying-a-flat/working-out-your-flat-budget/credit-to-finance-a-flat-purchase) |
| Cash needed with a bank loan | At least 5% of the price — With an HDB loan the whole 25% downpayment can come from CPF OA. | [HDB](https://www.hdb.gov.sg/residential/buying-a-flat/working-out-your-flat-budget/credit-to-finance-a-flat-purchase) |
| CPF Withdrawal Limit | 120% of the Valuation Limit — The most CPF you can put into one property; after that, instalments are cash. | [CPF Board](https://www.cpf.gov.sg/member/home-ownership/using-your-cpf-to-buy-a-home) |

## Setting a realistic flat budget: step by step

Affordability is the price you can pay without straining your monthly budget — not just the biggest loan a lender allows.

1. **Work out the loan side** (First) — Enter income, age, other debts and loan type. The calculator turns 30% of income into a maximum loan at the stress rate, then divides by 75% to get the matching price. Tools: [HDB Loan Eligibility Calculator (HLE)](https://toolsg.com/en/hdb-loan-eligibility-calculator), [TDSR & MSR Calculator (How Much Home Loan Can I Get)](https://toolsg.com/en/tdsr-msr-calculator)
2. **Add your own money** (Second) — Check your CPF Ordinary Account balance and how much cash you can set aside. With a bank loan at least 5% of the price must be cash. Tools: [CPF Contribution Calculator](https://toolsg.com/en/cpf-calculator)
3. **Add grants** (Third) — First-timers can receive up to $230,000 in CPF housing grants on a resale flat. Grants go into CPF and lower what you need to borrow. Tools: [HDB Grant Calculator (EHG)](https://toolsg.com/en/hdb-grant-calculator)
4. **Subtract the one-off costs** (Fourth) — Budget for stamp duty, legal fees, valuation, renovation and furniture, and any cash over valuation on a resale flat. Tools: [Singapore Buyer’s Stamp Duty Calculator](https://toolsg.com/en/bsd-stamp-duty-calculator), [Property True Cost Calculator](https://toolsg.com/en/property-true-cost-calculator), [HDB Renovation Loan Calculator](https://toolsg.com/en/hdb-renovation-loan-calculator)
5. **Stress-test the instalment** (Before you commit) — Look at the +1% and +2% rows. If a bank-loan instalment at +2% would squeeze your budget, aim lower or keep a bigger cash buffer. Tools: [Singapore Loan Repayment Calculator](https://toolsg.com/en/loan-repayment-calculator), [SORA Rate Today](https://toolsg.com/en/sora-index)
6. **Confirm with HDB or the bank** (Before the OTP) — Apply for an HFE letter (and a bank In-Principle Approval if needed). The official figures replace this estimate.

## From income to maximum price

The calculator works backwards from what you can pay each month:

1. **Monthly cap.** 30% of gross monthly household income (MSR). With a bank loan, the cap is also limited by TDSR: 55% of income minus your other monthly debts.
2. **Maximum loan.** The loan that monthly cap repays over your tenure at the stress rate — 3% for an HDB loan, at least 4% for a bank loan.
3. **Maximum price.** Because a loan can cover at most 75% of the price, the matching price is the loan ÷ 0.75.
4. **Downpayment.** The other 25%. With an HDB loan it can all be CPF; with a bank loan at least 5% is cash.

| Household income, 25-year HDB loan | Max loan | Max price | Downpayment (25%) | Instalment at 2.6% |
| --- | --- | --- | --- | --- |
| $5,000 | $316,300 | $421,800 | $105,400 | $1,435 |
| $7,000 | $442,800 | $590,500 | $147,600 | $2,009 |
| $10,000 | $632,600 | $843,500 | $210,900 | $2,870 |

The same $7,000 household with a 25-year bank loan sized at 4% gets a lower maximum (about $397,900 loan, $530,500 price) and must pay at least **$26,500 in cash**; its instalment depends on the bank's rate. Over 25 years, or past age 65, a bank loan on an HDB flat drops to 55% LTV with at least 10% in cash.

> **Tip:** The maximum price is a ceiling, not a target. If the downpayment would empty your CPF and savings, you have no buffer for renovation, emergencies or a rate rise.

## Downpayment: CPF versus cash

| | HDB loan | Bank loan |
| --- | --- | --- |
| Minimum downpayment | 25% | 25% |
| Minimum in cash | None | 5% of the price |
| Rest | CPF OA and/or cash | CPF OA and/or cash |
| Cash over valuation (resale) | Cash only | Cash only |

The calculator flags when your CPF OA balance is not enough to cover the CPF part, so you can see how much extra cash you need.

## What else you must budget for

The flat price is not the whole bill. Typical extra costs on a resale purchase:

- **Buyer's Stamp Duty** (and ABSD if you already own property) — due within 14 days of exercising the OTP.
- **Legal and conveyancing fees**, the HDB resale application fee and the valuation fee.
- **Cash over valuation** if the price is above HDB's valuation.
- **Insurance** — HDB fire insurance with an HDB loan, and HPS if CPF pays the instalments.
- **Renovation and furnishing**, often the largest cost after the downpayment.

The [property true cost calculator](https://toolsg.com/en/property-true-cost-calculator) adds these up for a given price.

## Stress-testing the instalment

The stress test shows the monthly instalment at your rate and at +1% and +2%. For the $7,000 household above, an HDB loan of $442,800 costs **$2,009** a month at 2.6%, **$2,241** at 3.6% and **$2,487** at 4.6%.

An HDB loan's rate moves only with the CPF OA rate, so large jumps are unlikely. A bank loan's floating rate follows SORA after any lock-in, so the +2% row is a realistic scenario to plan for.

## How CPF use is limited

- **Valuation and Withdrawal Limits.** You can use CPF up to the Valuation Limit (the lower of price and valuation), and up to the Withdrawal Limit (120% of it) once your Basic Retirement Sum is set aside.
- **Remaining lease.** You can use CPF in full only if the lease covers the youngest buyer to age 95; otherwise CPF use is pro-rated. See the [lease and CPF calculator](https://toolsg.com/en/hdb-lease-cpf-calculator).
- **Refund on sale.** All CPF used, plus the interest it would have earned, goes back to your CPF account when you sell.

## Common mistakes

- **Budgeting at 2.6% instead of 3%.** HDB sizes the loan at 3%, so your real maximum is lower.
- **Forgetting the 5% cash with a bank loan.** On a $600,000 flat that is $30,000 that cannot come from CPF.
- **Treating the maximum as a target.** Leave room for renovation and an emergency fund.
- **Ignoring other debts with a bank loan.** A car loan can make TDSR bind before MSR.
- **Ignoring lease decay.** A cheap old flat may limit both your loan tenure and CPF use.

## Related tools

- [HDB loan eligibility](https://toolsg.com/en/hdb-loan-eligibility-calculator) — the loan side in more detail.
- [HDB grant calculator](https://toolsg.com/en/hdb-grant-calculator) — grants that reduce what you borrow.
- [TDSR and MSR calculator](https://toolsg.com/en/tdsr-msr-calculator) — for bank loans and private property.
- [Loan repayment calculator](https://toolsg.com/en/loan-repayment-calculator) — full amortisation schedule.

## Frequently asked questions

**What is the difference between MSR and TDSR?**

MSR (Mortgage Servicing Ratio) caps the monthly mortgage instalment for an HDB flat at 30% of gross monthly income, whether the loan is from HDB or a bank. TDSR (Total Debt Servicing Ratio) caps all monthly debts, including the new mortgage, at 55% of income and applies to bank loans. For an HDB flat with a bank loan both limits apply, so the stricter one decides your loan.

**Can I use CPF for the whole downpayment?**

With an HDB loan, yes: the minimum 25% downpayment can be paid fully from your CPF Ordinary Account. With a bank loan, at least 5% of the price must be paid in cash and the remaining 20% can come from CPF or cash. Cash over valuation is always paid in cash.

**How does my age affect the loan?**

An HDB loan runs for the shortest of 25 years, 65 minus the applicants' average age, or the remaining lease minus 20 years. A 45-year-old can therefore borrow over at most 20 years. Bank loans on HDB flats can run to 30 years, but the loan-to-value limit drops if the tenure goes past 25 years or past age 65. A shorter tenure means a smaller loan for the same 30% MSR.

**Should I choose an HDB loan or a bank loan?**

An HDB loan charges 2.6% p.a. (tied to the CPF OA rate), allows a fully-CPF downpayment and has no early-repayment penalty. A bank loan may be cheaper when market rates are low and has no income ceiling, but it must also pass TDSR, needs 5% cash and reprices after its lock-in. You can refinance from an HDB loan to a bank later, but never back.

**Can Permanent Residents take an HDB loan?**

Only if at least one buyer is a Singapore Citizen. A household of Permanent Residents only can buy a resale flat with a bank loan, subject to MSR, TDSR and HDB's eligibility rules, but cannot take an HDB loan.

**How is the maximum loan worked out?**

It is the lowest of three limits: the loan your 30% MSR instalment can repay over the allowed tenure at a stress rate (3% for an HDB loan, at least 4% for a bank loan); for a bank loan, the TDSR headroom after other debts; and 75% of the lower of price or valuation. With $6,000 income and an HDB loan over 25 years, MSR supports about $379,600.

**What is the CPF Withdrawal Limit?**

It is the most CPF you can use on a property: 120% of its Valuation Limit (the lower of price and valuation at purchase). After you reach it, instalments must be paid in cash. A short remaining lease can lower how much CPF you may use.

**Do I have to pay back CPF when I sell?**

Yes. The CPF you used, plus the interest it would have earned, is refunded to your CPF account from the sale proceeds. If an HDB flat is sold at market value and the proceeds are not enough for the full refund, you do not have to top up the shortfall in cash.

**What counts towards TDSR?**

All monthly debt obligations: the new mortgage, other property loans, car and personal loans, study and renovation loans, credit-card minimum payments and guarantees for other people's loans. Clearing a car or personal loan before applying is often the quickest way to borrow more from a bank.

**Is this calculator's result my approved loan?**

No. It is a planning estimate from published MSR, TDSR, stress-rate, tenure and LTV rules. HDB states your official loan in the HFE letter, and banks give an In-Principle Approval after a credit assessment.


## Sources

- [HDB — Credit to finance a flat purchase](https://www.hdb.gov.sg/residential/buying-a-flat/working-out-your-flat-budget/credit-to-finance-a-flat-purchase)
- [MAS — MSR and TDSR rules](https://www.mas.gov.sg/regulation/explainers/new-housing-loans/msr-and-tdsr-rules)
- [HDB — Measures announced in Aug 2024 (LTV 75%)](https://www.hdb.gov.sg/cs/infoweb/business/estate-agents-and-salespersons/letters-to-keos/Measures-to-Cool-the-HDB-Resale-Market-and-Provide-Greater-Support-for-First-time-Home-Buyers)
- [CPF Board — Using your CPF to buy a home](https://www.cpf.gov.sg/member/home-ownership/using-your-cpf-to-buy-a-home)