Are you planning to buy a HDB flat and wondering whether you qualify for a HDB loan?

Like every loan, HDB loans in Singapore have requirements that you must meet before you can qualify for the loan. This is intended to ensure you can service the loan and that you do not borrow beyond your means.

Below you’ll find the criteria for HDB loan eligibility, the factors to consider when applying, and if you can use your CPF funds to finance the purchase.

Eligibility Conditions

A HDB loan is a loan borrowed from HDB or a bank to help you finance your home purchase. A HDB concessionary loan differs from a bank loan.

While a bank loan mostly requires a good credit score, HDB has a list of eligibility criteria you must meet, as shown in the table below. These criteria are known as HDB loan eligibility.

HDB Loan Eligibility (HLE) Criteria
CitizenshipAt least one buyer in the loan application must be a Singapore citizen (SC)
Household StatusYou must not have recently obtained two or more HDB housing loans.
And the most recent property should not be private residential property (local or overseas).
Property OwnershipTo be eligible for a HDB HLE letter, you cannot be the owner of or have recently sold any private residential property during the 30 months that precede the application date.
In addition, you should not be the owner of more than one piece of commercial or industrial real estate, market stall, or hawker stall.
If you do own only one of the above, you must be operating your business from that location and have no other sources of income.
Remaining Lease StatusYou may qualify for a HDB housing loan up to an 80% loan-to-value (LTV) limit* if the remaining lease on the property can cover the youngest buyer until the age of 95.
*If the remaining lease does not meet this criterion, the LTV will be pro-rated from 80%
Income CeilingSingles: Under the Single Singapore Citizen (SSC) Scheme, the average monthly household income cost for a five-room or smaller resale flat or a two-room new flat in a non-mature estate should not exceed $7,000.
Average families: $14,000
Extended families: $21,000
Remember that if you work odd jobs or don't have a steady job, a "haircut" may be applied to your income, such that only 70% of it qualifies for a HDB loan.

With regard to the income ceiling for HDB loan, HDB does not consider funds received as alimony, pension, dividends, and claims among others as part of your monthly income.

Other key indicators in the eligibility criteria include: 

  • Loan-to-value ratio (LTV) 

HDB loans accept a maximum LTV of 80%. 

  • Mortgage Servicing Ratio (MSR)

MSR determines your monthly installments. Currently, it is capped at 30% of your monthly salary.

  • Total Debt Servicing Ratio (TDSR)

This includes all your monthly debt and loan obligations. Currently, TDSR is capped at 55%.

HLE Letter And Validity Period

Once you have ascertained you fulfil the above eligibility criteria, you must apply for a HDB loan eligibility letter (HLE), which is valid for six months. This letter is required when you want to:

  • To book a new HDB flat
  • To submit a resale application and obtain an Option to Purchase (OTP) a resale flat.  
  • To apply to assume ownership of an existing apartment (by way of transfer)

The letter acts as a planning tool to help you budget for the purchase of the HDB flat by detailing: 

  • The loan amount 
  • The repayment period
  • Monthly installments
  • Flat type and lease
  • Terms and conditions

Remember that the letter is valid for six months and can be reviewed for reasons such as falsified or incorrect information and changes. 

This may affect your ability to obtain and service a HDB housing loan or purchase the flat.

Credit Assessment Criteria

Moving on with HDB loan eligibility, potential borrowers must also fulfil the credit assessment criteria to qualify for the loan. 

Your assessment will be based on two considerations: 

  • You’re an income earner making monthly CPF contributions

Here, you must be in consistent employment for at least six months and have a variable basic salary.

If the salary is fixed, you’ll need to be in consistent employment for at least three months.

  • You’re an income earner with no monthly CPF contributions

Here, you must have consistent cashflow from continuous employment or trade for at least six months and have at least six months’ worth of bank statements to back you up. 

You must also have a good credit score to support your housing loan application.

How, Where And When To Apply For A HDB Housing Loan

How And Where To Apply

Start your loan application by applying for the HDB loan eligibility letter through the HDB website. You’ll need to have Singpass for this. If you don’t have an account, visit the Singapass website to create one.

Next, proceed to apply for the loan and upload the required documents. These documents are based on your income and CPF monthly contribution status as follows: 

Employed With CPF Contributions

  • Latest CPF contribution history for the last 15 months
  • Latest payslips for at least three months

Employed With No CPF Contributions

  • Last six months’ payslips
  • Most recent banks statements for six or more months
  • Credit report


  • Most recent banks statements for six or more months
  • Credit report
  • Latest Notice of Assessment from IRAS 

Part-Time Worker/Commission-Based

  • Most recent banks statements for six or more months
  • Credit report
  • Latest CPF contribution history for the last 15 months
  • Latest payslips/ commission statements for at least six months

Odd Job Worker

  • Credit report
  • Latest CPF contribution history for the last 15 months
  • Most recent banks statements for six or more months
  • Latest Notice of Assessment from IRAS or a recent letter from the employer certifying job designation, and commission/salaries for 6+ months


  • Latest CPF contribution history for the last 15 months
  • The latest proof of income from your previous employer for the past months 

Once done, you will receive an SMS or message within 14 days with the results of your application. You can also track the progress of your application through your MyHDB portal. 

When To Apply

Before you apply, take the time to understand the opportunities and limitations of a HDB loan. You can use a housing loan calculator to estimate the loan amount, interest rates, and monthly installments you are likely to get from a lender.

While you’re at it, compare the contract terms of different licensed money lenders in Singapore and choose the one that best fits your financial situation. If you’re still unsure, seek advice from a financial consultant. 

Factors That Determine How Much Housing Loan You Can Get

Some of the factors that affect your HDB loan eligibility include:

Your Financial Status

The financial situation demonstrates your ability to repay the HDB loan. This is determined by: 

  • Age
  • Monthly income
  • Job security
  • Current financial loans and obligations (refer to our point on the TDSR)
  • Credit Report
  • Monthly financial savings

You must be employed during the month you are applying for the loan and remain so when the loan is disbursed.

As mentioned, if your financial condition or any other change has occurred, your HLE letter will be reviewed and the loan amount reduced.

Interest Rates

HDB employs the greater of the following to determine your maximum HDB loan amount:

  • Interest rate floor (currently at 3.0% per annum)
  • The current interest rate for HDB housing loans is 0.1% higher than the current interest rate for CPF Ordinary Accounts, which is adjusted quarterly

Interest rates are based on the average non-promotional interest rates for HDB flats offered by the three local financial institutions, with a minimum of the concessionary interest rate. 

This is for flat buyers taking out a second HDB housing loan and purchasing a HDB flat before selling their existing one.

The interest rate will change to a concessionary rate if you sell the current flat and utilise the CPF return and half of the cash earnings to pay off the second HDB housing loan amount.

Loan Tenure

Your loan tenure is limited to the shortest of the following:

  • 25 years
  • The remaining lease on the flat, minus 20 years
  • The time remaining until you reach the age of 65

Can You Use Your CPF Funds?

Yes, you can use your CPF funds to finance the HDB flat purchase or settle the monthly installments. However, this is done on the following grounds:

  • You keep up to $20,000 of the available savings in your CPF Ordinary Account (OA)
  • You use the savings in your CPF OA to pay the stamp cost, registration fee, legal fees, and the premium for the CPF Home Protection Insurance (if applicable)

Before the HDB housing loan is issued, the remaining amount in your CPF OA must be used to acquire a new flat or assume ownership of an existing one. However, the sum you are permitted to utilise for this will depend on:

  • The degree to which the remaining lease of the flat can protect the youngest buyer or transferee up to the age of 95
  • Applicable CPF usage restrictions for the buying both new and resale flats

Once you’ve used up your allocated CPF amount, you’ll have to pay any remaining balance in cash.

Leverage The Flexible Terms Of A HDB Loan

HDB loans, unlike bank loans, have flexible terms that make HDB flat acquisition easier. One of these is the ability to use your CPF funds to purchase the flat or pay the monthly loan installments. 

However, you must meet the rigorous HDB loan eligibility criteria to ensure you can afford to repay the loan. 

If you need financial assistance with HDB loans, you can get in touch with us at Credit 21 or apply for a loan to enjoy our flexible repayment terms and low interest rates.