What financing options are available for HDB resale flats?
HDB resale flats can be financed through either an HDB concessionary loan or a bank loan. HDB loans offer up to 75% LTV with no mandatory cash downpayment and a stable interest rate, while bank loans also offer up to 75% LTV but require at least 5% cash downpayment and carry variable market-driven rates. Key factors to consider include your eligibility, the flat's remaining lease, and additional resale-specific costs such as COV, stamp duties, and agent fees.
Last updated: 22 Apr 2026
Purchasing an HDB resale flat in Singapore offers two main financing routes: an HDB concessionary loan or a bank loan. Each option has different eligibility criteria, terms, and implications for your purchase.
An HDB loan is available to Singapore Citizens (at least one buyer must be a Citizen) whose household income does not exceed the applicable ceiling. The key advantages of an HDB loan include a higher LTV ratio of up to 75% (meaning a downpayment of 25%), the ability to pay the entire downpayment using CPF OA savings with no mandatory cash component, a stable interest rate pegged at 0.1% above the CPF OA rate (currently 2.6%), no early repayment penalty, and the option to extend your tenure up to 25 years or until the youngest borrower turns 65.
A bank loan offers an LTV of up to 75%, requiring a minimum downpayment of 25% (of which at least 5% must be in cash). Bank loan interest rates are market-driven and can be lower than the HDB rate during favourable conditions, though they are subject to fluctuation. Bank loans can extend up to 30 years for HDB flats but are also subject to age limits. Lock-in periods and early repayment penalties apply.
Regardless of which loan type you choose, you will need to obtain an HDB Flat Eligibility (HFE) letter or an In-Principle Approval (IPA) from a bank before you begin house-hunting. This confirms how much you can borrow and strengthens your position as a buyer.
Additional costs specific to resale flat purchases include the resale levy (if you previously owned a subsidised flat), the cash-over-valuation (COV) amount if you agree to pay above the flat's assessed value, agent commissions, legal fees, and stamp duties.
One important consideration for older resale flats is the remaining lease. Banks may be reluctant to offer full tenure loans for flats with shorter remaining leases, and CPF usage rules also tie the amount of CPF you can use to the remaining lease relative to the youngest buyer's age.
Cashew helps resale flat buyers compare HDB loans and bank loans side by side, taking into account your specific financial profile and the property's characteristics, to determine which option delivers the best outcome.