Answer
HDB Down Payment Options
CPF, cash, and grant breakdown for buying an HDB flat. How to minimise out-of-pocket costs.
Quick answer: HDB loan requires 10% down payment (can be 100% CPF OA, $0 cash). Bank loan requires 25% down payment (minimum 5% cash + up to 20% CPF OA). On a $500K flat, that's $50K (HDB loan) or $125K (bank loan) down. Grants up to $160K reduce the amount you need to finance. Stamp duty ($9,600 on $500K) and legal fees ($1,800-$2,500) are additional cash costs. Lowest cash path: HDB loan + full CPF OA down payment + maximum grants = as low as $12K total cash out-of-pocket.
HDB Loan vs Bank Loan: Down Payment Compared
| Feature | HDB Loan | Bank Loan |
|---|---|---|
| LTV (Loan-to-Value) | 80% | 75% |
| Down payment | 20% (after grants) | 25% (after grants) |
| Cash minimum | $0 | 5% of purchase price |
| CPF OA allowed | Up to 20% | Up to 20% (after 5% cash) |
| Interest rate | 2.6% (fixed) | 2.5-2.8% (variable) |
| Max tenure | 25 years | 30 years |
| Income ceiling | $14K (families) / $7K (singles) | No ceiling |
HDB loan LTV was reduced from 90% to 80% in the 2024 cooling measures. Bank loan down payment calculation is based on the lower of purchase price or valuation.
Down Payment by HDB Price (No Grants)
| Flat Price | HDB Loan (20%) | Bank Loan (25%) | Bank: Min Cash (5%) |
|---|---|---|---|
| $350,000 | $70,000 | $87,500 | $17,500 |
| $500,000 | $100,000 | $125,000 | $25,000 |
| $600,000 | $120,000 | $150,000 | $30,000 |
| $800,000 | $160,000 | $200,000 | $40,000 |
HDB loan: full 20% can be paid from CPF OA ($0 cash). Bank loan: 5% must be cash, remaining 20% from CPF OA. These are before grants which further reduce the down payment.
Grants That Reduce Your Down Payment
Grants are credited directly, reducing the amount you need to pay or finance. Combined grants can reach $160K for eligible first-timer couples.
| Grant | Amount | Who Qualifies |
|---|---|---|
| Enhanced CPF Housing Grant (EHG) | Up to $80,000 | First-timer families, income ≤ $9K. Singles up to $40K (income ≤ $4.5K). |
| CPF Housing Grant (Family) | $50,000-$80,000 | First-timer families buying resale HDB. $80K for 2-4 room, $50K for 5-room/EC. |
| Proximity Housing Grant (PHG) | $30,000 | Buying near parents/children (within 4km). $15K for singles. |
| Step-Up Housing Grant | $15,000 | Second-timer families in 2-room or smaller upgrading to 3-room or larger. |
Grant amounts effective 2026. EHG is income-tiered (higher income = lower grant). Grants are applied before calculating down payment and loan amount.
Worked Example: $500K Resale 4-Room
First-timer couple, combined income $7K, HDB loan, buying near parents:
| Item | Amount | Source |
|---|---|---|
| Purchase price | $500,000 | |
| Less: EHG | -$80,000 | Income ≤ $9K, first-timer |
| Less: Family Grant | -$50,000 | 5-room, first-timer family |
| Less: PHG | -$30,000 | Within 4km of parents |
| Net price | $340,000 | |
| Down payment (20%) | $68,000 | From CPF OA (can be $0 cash) |
| HDB loan (80%) | $272,000 | 2.6% fixed, 25yr tenure |
| Stamp duty (BSD) | $9,600 | Cash or CPF OA |
| Legal fees | $2,000 | Cash |
| Total cash needed | ~$11,600 | Stamp duty (if paid cash) + legal |
With maximum grants and CPF OA covering the down payment, total out-of-pocket cash can be as low as ~$12K. BSD can also be paid from CPF OA, potentially reducing cash to ~$2K (legal fees only).
5 Ways to Minimise Cash Outlay
- 1.
Choose HDB loan over bank loan
HDB loan = 20% down, all from CPF OA. Bank loan = 25% down, 5% must be cash. If you qualify, HDB loan means $0 cash for down payment.
- 2.
Maximise grants
Apply for every grant you qualify for. EHG alone saves $40K-$80K. Buy near parents for an extra $30K (PHG). Check eligibility on HDB InfoWEB before viewing flats.
- 3.
Pay stamp duty from CPF OA
BSD can be paid from CPF OA for HDB purchases. This saves $5K-$15K in cash. Instruct your lawyer to arrange CPF OA deduction for stamp duty.
- 4.
Build up CPF OA before buying
At $5K gross salary, about $1,150/month goes to CPF OA ($920 employer + $230 employee share of OA). Wait 6 months = $6,900 more CPF OA. Every month matters.
- 5.
Negotiate below or at valuation
Any amount above HDB valuation (COV) must be paid in cash. Negotiate the price at or below valuation to avoid this cash top-up. COV can be $10K-$50K+ in hot markets.
Calculate Your HDB Budget
Plug in your income, CPF balance, and target flat price to see exactly how much cash you need and what you can borrow.
Affordability CalculatorFAQ
Can I use 100% CPF for my HDB down payment?
With an HDB loan, the 10% down payment can be paid entirely from CPF OA — zero cash needed. With a bank loan, the 25% down payment must include at least 5% in cash ($25K on a $500K flat). The remaining 20% can come from CPF OA. So HDB loan = potentially $0 cash down; bank loan = minimum 5% cash.
How much cash do I need to buy an HDB flat?
With an HDB loan: as little as $0 cash for down payment (use CPF OA for the full 10%). You still need cash for stamp duty ($9,600 on $500K), legal fees ($1,800-$2,500), and valuation fee ($120-$350). With a bank loan: minimum 5% cash ($25K on $500K) plus stamp duty and legal fees. Total cash outlay: HDB loan ~$12K, bank loan ~$37K on a $500K flat.
Do HDB grants reduce the down payment?
Yes. Grants are applied at the point of purchase and reduce the amount you need to finance. For example, if you receive $80K in grants on a $500K flat, your effective purchase price for financing purposes becomes $420K. Your down payment (10% HDB loan or 25% bank) is calculated on the net price after grants. This directly reduces cash needed.
What if my CPF OA balance is not enough for the down payment?
You can top up the shortfall with cash. For HDB loan: if your CPF OA has $30K but the 10% down payment is $50K, pay $20K in cash. For bank loan: the first 5% must be cash regardless, and if CPF OA cannot cover the remaining 20%, pay the difference in cash. Consider waiting a few months to accumulate more CPF OA (monthly contributions add up quickly).
Can I use CPF SA (Special Account) for HDB down payment?
No. Only CPF Ordinary Account (OA) can be used for housing. Special Account (SA) funds are for retirement and cannot be withdrawn for property purchases. The only exception is if you are over 55 and your SA has been merged into your Retirement Account — but even then, property usage rules are strict.
Related
Last updated Feb 2026. Down payment and grant amounts based on HDB and CPF Board guidelines. Stamp duty rates from IRAS. This is general information, not financial advice.