Work out the monthly instalment, total interest and year-by-year repayment on an HDB loan or a bank loan for an HDB flat.
An HDB loan is repaid in equal monthly instalments over the tenure, like any mortgage. Each instalment covers that month's interest first, and the rest reduces the loan. Early on, most of each payment is interest; by the final years, almost all of it repays the loan. That is why shortening the tenure cuts total interest so sharply.
HDB charges 2.6%a year, 0.1% above the CPF Ordinary Account rate. You can borrow up to 75% of the flat's price or value, whichever is lower, for up to 25 years, provided the instalment fits within 30% of your household income and the loan is repaid by 65.
| Loan amount | 15 years | 20 years | 25 years | Interest over 25 years |
|---|---|---|---|---|
| $250,000 | $1,679 | $1,337 | $1,134 | $90,252 |
| $350,000 | $2,350 | $1,872 | $1,588 | $126,353 |
| $450,000 | $3,022 | $2,407 | $2,042 | $162,454 |
| $550,000 | $3,693 | $2,941 | $2,495 | $198,555 |
| $650,000 | $4,365 | $3,476 | $2,949 | $234,656 |
Bank loans for HDB flats run for up to 30 years and are often cheaper while their lock-in rate lasts, but the rate floats afterwards. Banks must approve the loan as if the rate were 4%, which usually means you can borrow less than with an HDB loan on the same income. A bank loan also needs at least 5% of the price in cash, while an HDB loan lets you pay the whole down payment from CPF.
You can refinance from an HDB loan to a bank loan later, but not back again. Many buyers start with an HDB loan for its stability and flexibility, then compare bank packages when rates are low.
Most households pay their instalments from CPF OA, so the loan barely touches their take-home pay. The trade-off is that OA money spent on the flat stops earning 2.5% for retirement, and it must be refunded to your CPF with accrued interest if you sell. The CPF Projection Calculator shows how much the OA would otherwise grow.
This tool provides educational estimates only, not licensed financial advice. It assumes a constant rate for the whole tenure. HDB and banks make the final loan assessment, including valuation, credit checks and age limits.
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HDB loans charge 0.1% above the CPF Ordinary Account interest rate, which is 2.6% a year while the OA rate is 2.5%. HDB reviews it every quarter, but it has stayed at 2.6% for many years.
Up to 75% of the flat price or value, whichever is lower, over up to 25 years, as long as the loan is repaid by age 65. The instalment must also fit within 30% of your gross monthly household income (the Mortgage Servicing Ratio).
It depends on bank rates at the time. Bank loans are often cheaper when rates are low, but they float after the lock-in period, need at least 5% of the price in cash, and are approved at a 4% stress-test rate. An HDB loan has a stable rate and lets you pay the whole down payment from CPF. You cannot switch from a bank loan back to an HDB loan later.
Yes. Both HDB and bank loan instalments for an HDB flat can be paid from your CPF Ordinary Account, up to the valuation limit. Using CPF keeps your cash free but reduces what compounds in your OA for retirement.
The loan is based on the lower of price and valuation
Maximum 75%. The rest is your down payment.
Up to 25 years for an HDB loan on an HDB flat
For the 30% Mortgage Servicing Ratio check. Set to 0 to skip.
Loans should be repaid by 65 to get the full loan limit. Set to 0 to skip.
To find the most you can pay for a flat from your income, savings and grants, use the HDB Affordability Calculator.
Monthly instalment
$1,701
$375,000 over 25 years at 2.6% a year
The instalment is 24.3% of income, within the 30.0% Mortgage Servicing Ratio (up to $2,100 a month).
The loan is repaid by age 55, before 65.
In year 1, $9,622 of your $20,415 in payments goes to interest. By the final year, almost all of it repays the loan.
| Year | Interest | Principal | Balance left |
|---|---|---|---|
| 1 | $9,622 | $10,793 | $364,207 |
| 2 | $9,338 | $11,077 | $353,130 |
| 3 | $9,047 | $11,369 | $341,761 |
| 4 | $8,747 | $11,668 | $330,093 |
| 5 | $8,440 | $11,975 | $318,119 |
| 6 | $8,125 | $12,290 | $305,829 |
| 7 | $7,802 | $12,613 | $293,216 |
| 8 | $7,470 | $12,945 | $280,271 |
| 9 | $7,129 | $13,286 | $266,985 |
| 10 | $6,780 | $13,635 | $253,350 |
| 11 | $6,421 | $13,994 | $239,356 |
| 12 | $6,053 | $14,362 | $224,993 |
| 13 | $5,675 | $14,740 | $210,253 |
| 14 | $5,287 | $15,128 | $195,125 |
| 15 | $4,889 | $15,526 | $179,599 |
| 16 | $4,481 | $15,935 | $163,665 |
| 17 | $4,061 | $16,354 | $147,311 |
| 18 | $3,631 | $16,784 | $130,527 |
| 19 | $3,189 | $17,226 | $113,301 |
| 20 | $2,736 | $17,679 | $95,622 |
| 21 | $2,271 | $18,144 | $77,478 |
| 22 | $1,794 | $18,622 | $58,856 |
| 23 | $1,304 | $19,112 | $39,745 |
| 24 | $801 | $19,614 | $20,130 |
| 25 | $285 | $20,130 | $0 |