Do it yourself, in three steps
How much will HDB lend me?
Four things set the number: your income, your age, your other debts, and how much lease the flat has left. This shows which one is holding you back.
The lease test nobody explains properly
An older flat shrinks your loan, and the formula is simple arithmetic on two ages:
| Step | Worked example |
|---|---|
| Lease you need | 95 − 33 = 62 years |
| Lease the flat has | 52 years |
| Shortfall | 10 years |
| Your loan and CPF are capped at | 52 ÷ 62 = 84% |
If the remaining lease covers the youngest buyer to 95, you get the full amount. If it does not, both your HDB loan and your CPF usage are pro-rated by that fraction. Under 20 years of lease left, neither is available at all.
The other three limits
$14,000 for a family, $21,000 for an extended family, $7,000 for singles. Go over by a dollar and the concessionary loan is simply not available. There is no partial version of this rule.
Income is assessed gross, before CPF, across everyone on the application. Commission and self-employed income is averaged and treated conservatively.
MSR caps the flat's instalment at 30% of gross income. TDSR caps all your debt — flat, car, personal loans, card minimums — at 55%.
On $8,000 of income, MSR gives you $2,400 a month. Add a $2,000 car payment and TDSR becomes the binding limit instead.
The loan must finish by the time the oldest buyer turns 65, up to a 25-year maximum. A 45-year-old gets 20 years, not 25.
Shorter tenure means a higher instalment, and the instalment is what MSR caps. At $2,400 a month you support about $506,000 over 25 years but only $347,000 over 15.
HDB sizes your loan using a floor rate of 3%, not the 2.6% you actually pay. That gap alone trims roughly 4% off what you qualify for.
It is a buffer, not a trick. Budget on the conservative number.
Get the HLE letter first. You need a valid one before you can be granted an Option to Purchase using an HDB loan, and agents will ask to see it. Applying after you have fallen in love with a flat is how people end up $80,000 short.
Common questions
What is an HLE letter?
HDB's formal statement of what they will lend you. You need a valid one before taking an Option to Purchase on a resale flat with an HDB loan.
Why is my assessed loan lower than this shows?
Usually variable income. Commission, bonus and self-employed earnings are averaged and discounted, while fixed salary is taken at face value. Undeclared debts and credit history matter too.
Does buying an older flat really cut my loan?
Yes, if the remaining lease does not cover the youngest buyer to age 95. Both the loan and your CPF usage are pro-rated by the shortfall.
Can I get an HDB loan if I own private property?
Not while you own it, and there is a waiting period after disposal. Plan the timing or budget for a bank loan.
How many HDB loans can I take?
Generally two in a lifetime. A second subsidised flat usually attracts a resale levy as well.