ELIGIBILITY CONDITIONS FOR HOUSING LOAN

HDB Housing Loan Eligibility Conditions for a HDB resale flat concessionary housing loan are detailed below. Alternatively, you can also use these enquiry facilities:

  • Eligibility Check – Buying an HDB resale Flat and Applying for an HDB Housing Loan
  • Application for HDB Loan Eligibility letter

HDB housing loan eligibility

You can apply for a HDB resale flat housing loan from HDB if you and your family members meet the following eligibility conditions.

CitizenshipAt least 1 buyer is a Singapore citizen
Household StatusHave not previously taken 2 or more housing loans from HDB
Have taken 1 housing loan from HDB and the last owned property is not a private residential property (local or overseas) such as:
HUDC flat
Property acquired by gift
Property inherited as a beneficiary under a will or as a result of the Intestate Succession Act
Property owned/ acquired/ disposed through nominees
Income CeilingAverage gross monthly household income does not exceed:

$12,000 for families
$18,000 for extended families
$6,000 for singles buying a 5-room or smaller resale flat, or 2-room new flat in a non-mature estate, under the Single Singapore Citizen (SSC) Scheme
To find out about the documents to submit please refer to our income guidelines.
If an applicant or occupier is unemployed for less than 3 months, his/ her average income will be computed based on the actual number of months he/ she has worked.
Ownership/ Interest in PropertyMust not own or have disposed of any private residential property in the 30 months before the date of application for an HDB Loan Eligibility (HLE) letter. The private residential property (local or overseas) will include:
Property acquired by gift
Property inherited as a beneficiary under a will or as a result of the Intestate Succession Act
Property owned/ acquired/ disposed through nominees
Do not own more than 1 market/ hawker stall or commercial/ industrial property
If only 1 market/ hawker stall or commercial/ industrial property is owned, you must be operating the business there, and have no other sources of income
Remaining LeaseThe loan amount will depend on the extend the remaining lease can cover the youngest buyer to the age of 95.
Please make use of the following online calculators to plan your budget before committing to buy a flat:
Resale Financial Plan
Sales Financial Plan
Remaining Lease of flat is more than 20 years and covers youngest buyer to ageHDB Housing Loan
>95 yearsAllowed, subject to:
Loan-to-Value (LTV) limit* of 90%; and
Loan tenure is the shortest of:
25 years;
65 years minus the average age of the buyers; or
Remaining lease at the point of the flat application* minus 20 years
<95 yearsAllowed, subject to:
LT limit of 90% is pro-rated based on the extend that the remaining lease can cover the youngest buyer to the age of 95; and
Loan tenure is the shortest of:
25 years
65 years minus the average age of the buyers; or
Remaining lease at the point of flat application* minus 20 years
Notes:The LTV limit refers to the maximum amount of loan a flat buyer can take up, expressed as a percentage of the purchase price or flat value.

The HDB housing loan amount for resale flat that you can take depends on credit assessment, loan-to-Value limit, remaining lease of the flat you are buying or taking over, and other HDB policies applicable at the point of the loan application.

HDB housing loan Income ceiling for extended family

The average gross monthly household income of extended families is calculated as follows:
CategoryGroup A's Income
(Income cannot exceed $12,000 per month)
Group B's Income
(Income cannot exceed $12,000 per month)
Extended Family Income Ceiling
Parents^ with single childrenParents with 1 working childOther single childrenTotal income of Group A and Group B must not exceed $18,000
Parents^ with married child+Parents with any single working childrenMarried child's* and family

^ Includes widow/ widower or divorcee

+ Includes applicants applying under the Fiancé/Fiancée Scheme

Example

A married couple with 3 working children wishes to get an HDB housing loan for resale flat to buy an HDB flat.  Their average gross monthly income is as follows:

Husband = $4,000
Wife = $4,000
Child 1 = $4,000
Child 2 = $2,000
Child 3 = $4,000

Their average gross monthly income as an extended family works out as:

Income of Group A

Parents and 1 of the children
Cannot exceed $12,000
Income of Group B

Remaining children
Cannot exceed $12,000
Extended Family Income Ceiling

Total income of Group A and Group B must not exceed $18,000
Husband + Wife + Child 2 = $10,000Child 1 + Child 3 = $8,000
$18,000
The family is able to meet the income ceiling for the extended family.

HDB housing loan eligibility (HLE) Letter

If you wish to take an HDB resale flat housing loan to buy or take over ownership of a flat, you will need to first apply for an HDB Loan Eligibility (HLE) letter before committing to the transaction. The HLE letter will be valid for 6 months. You have to wait out 30 months from the date of disbursement of an HDB housing loan before you can apply for another loan.

Do apply early as you need to have a valid HLE letter when you:

  • Book a new flat from HDB^
  • Obtain an Option to Purchase from a resale flat seller
  • Apply to take over the ownership of a flat (by way flat transfers)

Note:
^ There is no mortgage loan financing for the purchase of a 2-room Flexi flat on short lease.  You will have to pay for the flat using your cash and/ or CPF savings.

Eligible first-timer couples who are full-time students or National Servicemen, or have completed their studies or National Service in the last 12 months before their flat application may defer the income assessment for an HDB housing loan and Additional Housing Grant/ Special CPF Housing Grant till just before key collection.

Applicants without a valid HLE letter when they book a flat will not be eligible to apply for an HDB housing loan later on.

HDB housing loan HLE letter

Knowing the housing loan amount you help you to work out your budget to buy, or take over ownership of a flat. The HLE letter is a financial planning tool, and will provide information on the:

  • Eligible housing Loan amount
  • Monthly instalments
  • Repayment period
  • Amount of cash proceeds from disposal of the existing or previous flat to be used to pay for the next flat (if applying for second HDB concessionary housing loan)
  • Other terms and conditions

Validity of HLE letter

It is valid for 6 months from the date of issue. There is no need for re-assessment during this period, so long as there is no change in financial position and family members.  A week before expiry of the HLE letter, you may apply for a new one if you still require a valid HLE letter.

Review of HLE letter

The loan offer will be reviewed if:

  • Any given information is untrue or incorrect
  • There are any changes in your household income, family nucleus or other circumstances which may affect your eligibility for an HDB housing loan and purchase/ take over the ownership of a flat
  • You and your family members listed in the application do not comply with any of the terms and conditions to buy a flat and/ or take an  HDB housing loan
  • There are any changes in HDB policies which may affect your eligibility to buy a flat and/ or take an HDB housing loan

If you have purchased an uncompleted flat from HDB, we will review your financial position nearer the completion of the flat. This is to confirm that there is no change in your ability to service the housing loan.

HDB LOAN ELIGIBILITY APPLICATION

HDB Housing Loan Flat once confirm your eligibility for an HDB housing loan for resale flat, you can proceed to apply for an HDB Resale Flat Loan Eligibility (HLE) letter and upload the supporting documents online. 

HDB Housing Loan – What to prepare?

  • Complete the questionnaire for a preliminary assessment of your eligibility.
  • Ensure all applicants and their spouse(s) have a valid SingPass. If not, you can apply for one at www.SingPass.gov.sg or at any designated SingPass counters.
  • A set of these income and supporting documents.

Where to apply?

  • Apply for an HLE letter and upload your documents at www.hdb.gov.sg/hleapply.
  • Retrieve your draft HLE application if you have saved one within the last 30 days.

How to submit documents?

  • Scan your documents in either PDF or JPG format, and limit each file to below 5MB.
  • If you require assistance, you can bring the documents to the e-service kiosks available at the your nearest HDB Branches, or e-Lobby at the HDB Hub.

What happens after applying?

  • We will process the application within 14 days of receiving the full set of documents.
  • You may wish to log in to My HDBPage to view the application status under My Flat > Application Status > HLE.

For more details on CPF Housing grant, click here.

INCOME GUIDELINES AND OTHER DOCUMENTS

HDB housing loan Income Guidelines and Other Documents are to process your application or an HDB Loan Eligibility (HLE) letter. We need to have the necessary income documents for all persons listed in the application. If the documents are incomplete, the HLE application cannot be processed. We may also request additional documents to be submitted for credit assessment purpose.

If you are working overseas, please submit additional income proof such as your employment pass, work permit, business documents, or overseas income tax returns. An official English translation is required if the documents are not in English, Mandarin, Malay or Tamil. 

The following types of income/allowance are not considered for credit assessment:

  • Alimony/ maintenance fee
  • Bonuses
  • Claims/ reimbursement/ expenses
  • Director fees
  • Dividend income/ interest from deposit accounts
  • Income from overtime work
  • National Service allowance
  • Occupier’s income
  • Overseas cost of living allowance
  • Pension
  • Rental income
  • Scholarship overseas allowance
     

The applicant must be employed at the month of application and remain gainfully employed before an HDB housing loan is disbursed.

If you are employed but on no-pay leave for less than 6 months at the time of application, we will use your last drawn pay for assessment. If the duration of no-pay leave is 6 months or more at the time of application, your income will not be considered.

Find out more about the documents you need to submit based on your nature of employment.

HDB housing loan for employed Person (with monthly CPF contribution)

As an applicant:

  • 3 months’ payslips preceding the month of application or a recent letter^ from the employer certifying job designation, commencement date, and salaries for 3 months preceding the month of application; and
  • Latest 15 months’ CPF contribution history 
If your income includes allowance, we will need 6 months payslips preceding the month of application.

As an occupier:

  • 3 months’ payslips preceding the month of application or a recent letter^ from the employer certifying job designation, commencement date, and salaries for 3 months preceding the month of application.
Notes:

* Employed persons will need to submit payslips to show the breakdown of income components received. As Income tax returns do not reflect the breakdown of income, they will not be accepted.

^ For proof of income, all employer’s letter must have the company letterhead/ stamp, and the name, signature, and designation of the certifying officer.

HDB housing loan for Employed Person (without monthly CPF contribution)

As an applicant:

  • 6 months’ payslips preceding the month of application, or a recent letter^ from the employer certifying job designation, commencement date, and salaries for 6 months preceding the month of application; and
  • Credit Bureau report#; and
  • Latest 6 months’ bank statements/ passbook 

As an occupier:

  • 3 months’ payslips preceding the month of application or a recent letter^ from the employer certifying job designation, commencement date, and salaries for 3 months preceding the month of application
Notes:

* Employed persons will need to submit payslips to show the breakdown of income components received. As Income tax returns do not reflect the breakdown of income, they will not be accepted.

^ For proof of income, all employer’s letters must have the company letterhead/ stamp, and the name, signature, and designation of the certifying officer.

# A copy of the Credit Bureau report can be requested online, or at any SingPost Branch. Alternatively, you can visit the Credit Bureau Office to obtain a report directly. The Credit Bureau will charge a fee for the report. If you have requested to have your report sent directly to HDB, please submit a copy of the payment receipt for our verification.

HDB housing loan for Self-Employed Persons

As an applicant:

  • Latest Notice of Assessment from IRAS or Certified Annual Statement of Accounts from an audit firm; and
  • Credit Bureau report#; and
  • Latest 6 months’ bank statements/ passbook 

As an occupier:

  • Latest Notice of Assessment from IRAS or Certified Annual Statement of Accounts from an audit firm
Notes:

# A copy of the Credit Bureau report can be requested online, or at any SingPost Branch. Alternatively, you can visit the Credit Bureau Office to obtain a report directly. The Credit Bureau will charge a fee for the report. If you have requested to have your report sent directly to HDB, please submit a copy of the payment receipt for our verification.

Commision-Based and Part-time Workers

As an applicant:

  • 6 months’ commission statements/ payslips preceding the month of application, or a recent letter^ from the employer certifying job designation, commencement date, and commissions/ salaries for 6 months preceding the month of application; and
  • Latest 15 months’ CPF contribution history; and
  • Credit Bureau report#; and
  • Latest 6 months’ bank statements/ passbook 

As an occupier:

  • 6 months’ commission statements/ payslips preceding the month of application, or a recent letter^ from the employer certifying job designation, commencement date, and commissions/ salaries for 6 months preceding the month of application;
Notes:

^ For proof of income, all lemployer’s letters must have the company letterhead/ stamp, and the name, signature, and designation of the certifying officer.

# A copy of the Credit Bureau report can be requested online, or at any SingPost Branch. Alternatively, you can visit the Credit Bureau Office to obtain a report directly. The Credit Bureau will charge a fee for the report. If you have requested to have your report sent directly to HDB, please submit a copy of the payment receipt for our verification.

Odd Job Workers

As an applicant:

  • Latest Notice of Assessment from IRAS or a recent letter^ from the employer certifying job designation, commencement date, and commission/ salaries for 6 months preceding the month of application; and
  • Latest 15 months’ CPF contribution history; and
  • Credit Bureau report#; and
  • Latest 6 months’ bank statements/ passbook 

As an occupier:

  • Latest Notice of Assessment from IRAS or a recent letter^ from the employer certifying job designation, commencement date, and salaries for 6 months preceding the month of application.
Notes:

^ For proof of income, all employer’s letters must have the company letterhead/ stamp, and the name, signature, and designation of the certifying officer.

# A copy of the Credit Bureau report can be requested online, or at any SingPost Branch. Alternatively, you can visit the Credit Bureau Office to obtain a report directly. The Credit Bureau will charge a fee for the report. If you have requested to have your report sent directly to HDB, please submit a copy of the payment receipt for our verification.

Unemployed Persons

If you are a full time student aged 18 and 62 years old, you will need to submit a valid Student Pass.

In addition, if you have been unemployed for less than 3 months, the following documents are required:

  • Income proof for the preceding month(s) from the previous employer stating their gross monthly income and last day of service
  • Latest 15 months’ CPF contribution history 

Important notes for applicants who have taken a HDB loan before

If you have taken an HDB concessionary loan before, and are buying another HDB flat after disposing of the existing one, you will need to submit:
  • Completion statements (showing the breakdown of cash proceeds and CPF refund) for the disposal of the applicant’s and spouse/ fiancée/ fiancé’s last owned HDB flat (if they do not have a current flat)
  • Divorce documents showing the division of the matrimonial HDB flat (if the immediate past HDB flat was disposed of with/ by an ex-spouse)

This applies to both applicants and essential occupiers of the flat application.

MORE INFORMATION ON YOUR HDB HOUSING LOAN

HDB Resale Flat

More Information on Your HDB Resale Flat Housing Loan

You may find the additional information on the HDB resale flat housing loan useful when you planning your finances.

Details on your HDB housing loan

We will assess your income, age and financial situation to determine the eligibility loan amount. The HDB resale flat concessionary housing loan interest rate is pegged at 0.1% above the CPF Ordinary Account interest rate. HDB does not provide a housing loan if a flat has a remaining lease of 20 years or less at the time of the flat application. There is no mortgage financing for the purchase of a 2-room Flexi flat on short lease.

Credit assessment

The housing loan amount that can be offered will depend on the buyers’ age, monthly income and financial situation.

If you are buying an uncompleted flat directly from HDB, we will review your financial position nearer the completion of the flat for housing loan disbursement. This is to confirm that there is no change in your ability to service the housing loan.

You can check our income guidelines to find out about the types of income we assess, and the documents to provide for credit assessment.

The applicant must be employed in the month of application and remain gainfully employed before the HDB housing loan is disbursed.

Loan quantum

The housing loan amount that you can take depends on the following:

  • Repayment period

This is capped at 25 years, or up till the buyer is 65 years old, or remaining lease of the flat at the point of the flat application minus 20 years, whichever is shorter.

  • Applicable interest rate

The computation of the HDB loan amount is based on the prevailing interest rate, which may be revised from time to time. The interest on the HDB housing loan is computed on a monthly basis or such other basis as HDB may decide.

The HDB concessionary housing loan interest rate is pegged at 0.1% above the CPF Ordinary Account interest rate. It is revised in January, April, July and October, in line with the revision of CPF interest rates.

  • Monthly instalments

This is capped at 30% of the applicants’ monthly income.

  • Loan-to-Value limit (LTV)

For new flats, the LTV limit is up to 90% of the purchase price. For resale flats, it is 90% of the lower of the resale price or value.

The HDB housing loan amount will be pro-rated from the 90% Loan-to-Value limit, if the remaining lease does not cover the youngest buyer/ owner to the age of 95 and beyond at the point of the flat application*.

Please make use of the following online calculators to plan your budget before committing to buy a flat:

  • Resale Financial Plan
  • Sales Financial Plan

Notes:

The LTV limit refers to the maximum amount of loan a flat buyer can take up, expressed as a percentage of the purchase price or flat value.

Using your CPF savings

If you are taking an HDB housing loan to buy or take over ownership of a flat, you may use the savings (up to the applicable CPF usage limits) in your CPF Ordinary Account to pay the stamp, registration, and conveyancing fees and the premium for CPF Home Protection Insurance (if applicable). You also have the option of retaining up to $20,000 in your CPF Ordinary Account. The rest of the available CPF Ordinary Account balance must be used for the flat purchase or taking over, before an HDB housing loan is granted.

Use of CPF savings

You will need to use all your savings (up to the applicable CPF usage limits), except for up to $20,000 that you may retain, in your CPF Ordinary Account to pay for the flat purchase, before taking up an HDB housing loan. You may also use the savings in your CPF Ordinary Account to pay the stamp, registration, and conveyancing fees, and the premium for the CPF Home Protection Insurance (If applicable).

If the remaining lease of the flat you are buying or taking over ownership of covers the youngest buyers/ transferee to the age of 95 and beyond at the point of the flat application, you will be subject to the prevailing Valuation Limit, as prescribed by CPF Board, in the CPF usage. Otherwise, you will be subject to a pro-rated CPF Withdrawal Limit (WL) as prescribed by the CPF Board. Please note that you will not be able to use CPF if you buy a flat with a remaining lease of 20 years or less.

You may use the online calculator on CPF Board website to compute the allowable CPF usage.

More information on the use of CPF savings can be found on the CPF Board website.

When yours is a second HDB concessionary housing loan

For a second HDB concessionary housing loan, your loan quantum will be right-sized by utilising the CPF monies refunded and some of the cash proceeds obtained from the disposal of the previous HDB flat. If you have yet to dispose of your existing HDB flat before buying a flat with a second HDB housing loan, you will first be granted a loan at commercial interest rate. The interest will be converted to concessionary rate when you have disposed of the current flat and have used the CPF monies refunded and some of the cash proceeds from the disposal to repay the housing loan for the next flat purchase.

Right-sizing the quantum for a second HDB concessionary housing loan

The quantum for the second HDB concessionary housing loan will be reduced by the CPF monies refunded and up to 50% of the cash proceeds from the disposal of the existing or previously owned HDB flat. This facilitates financial prudence and prevents over-borrowing.  

The manner of disposal of a flat includes the sale, transfer or surrender of a flat, or by any other method under the Housing and Development Act or any other written law.

HDB reserves the right to determine the amount of proceeds to be used, either by taking into account the manner of holding of the existing/ previously owned HDB flat, or according to any court order that provides for the disposal/ division of the flat. 

Generally, flat buyers can keep the greater of $25,000 or 50% of the cash proceeds (including the cash deposit received), and HDB will take into account the remaining part of the cash proceeds when determining the quantum of the second HDB concessionary housing loan.

If you buy an HDB flat after disposing of the existing one

You and the essential occupier will have to use up to 50% of the cash proceeds from the disposal of the existing HDB flat. You may retain up to $20,000 in your CPF Ordinary Account and use the rest of the available CPF Ordinary Account balance to buy the next flat.

If you buy an HDB flat before disposing of the existing one

You will be charged commercial interest rate (pegged to the average non-promotional interest rate for HDB flats offered by the 3 local banks) for the housing loan to buy the next flat.

The interest rate will be converted to concessionary rate when you have disposed of the existing flat, and have used the CPF monies refunded and up to 50% of the cash proceeds from the disposal to repay the housing loan for the next flat purchase.  From the CPF monies refunded, you may retain up to $20,000 in your CPF Ordinary Account.

Servicing your HDB housing loan

Your instalment payments are due on the first day of the month and can be paid by cash and/ or CPF savings. For partial capital repayment or redemption of the HDB loan, please give us a written notice of at least one month in advance.

Repayment

Payment of the first monthly instalment will start on the first day of the second month, following the month in which the housing loan is disbursed. Thereafter, it will be due and payable on the first day of every month, until the loan is fully redeemed. You can use your cash and/ or CPF savings to pay the monthly instalments, subject to the prevailing rules of the CPF Board. 
 
A late payment charge will be imposed on any outstanding instalment at the end of the month. Any payment received subsequently will first be used to settle any outstanding late payment charges, followed by other outstanding charges and interests.
 
The balance will then be applied towards the payment of the loan instalment. Payments made using CPF savings will be deducted automatically. You can use set up a GIRO arrangement to deduct the instalments from your bank account.

Partial capital repayment and redemption of loan

During the loan tenure, you can make partial or full capital repayment of the loan by using your CPF and/ cash savings.

You can submit an application to your HDB branch to make a partial capital repayment of the housing loan. The proposed date for partial or full capital repayment of the loan will be schedule one month from the date your HDB branch has received your application. Full payment must be received by the date. 

To fully redeem the housing loan, you have to pay the whole of the principal sum and all other monies due to HDB, including interest up to the date of HDB’s receipt of the payment. HDB reserves the right not to accept any such payment, or to accept such payments only if it meets the minimum sum that is determined by HDB.

You can refer to Servicing Your HDB Loan for more details.

Insurance for HDB housing loans

You will have to purchase these insurance policies when you take an HDB housing loan. These will help to protect you and your loved ones in the case of unforeseen circumstances.

If you take an HDB housing loan to buy or take over an ownership of a flat, you will have to purchase these insurance policies:
  • HDB Fire Insurance Policy
  • Home Protection Scheme (if you are using your CPF savings to pay your monthly loan instalments)

The Home Protection Scheme is a mortgage-reducing insurance scheme administered by the CPF Board. It insures CPF members and their families against losing their home, should the policy holder become permanently incapacitated or pass away before the housing loan is paid up.

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