How Much HDB Resale Flat Can You Afford Earning $10,000 a Month?
Up to $840,000 resale flat
Assumes a first-timer family household on $10,000 a month combined, $80,000 in CPF OA, $50,000 in cash, and a 25-year HDB loan at 2.6%. Excludes stamp duty, legal fees and any cash-over-valuation.
Max affordable price
$840,000
Max HDB loan
$661,274
Total grants
$80,000
Monthly instalment
$2,858
A first-timer family earning $10,000 a month combined, buying a 4-room resale flat. With $80,000 in CPF OA and $50,000 in cash, the household can afford a resale flat priced up to about $840,000 on a 25-year HDB loan.
The down payment, not the loan, sets the budget. The income would support a loan of up to $661,274, but the 25.0% down payment must come from CPF OA, cash and grants, which total $210,000. That caps the price at $840,000. Each extra $10,000 of savings put towards the down payment raises the budget by about $40,000, up to the $881,699 the loan could support.
At $10,000 the household is above the $9,000 income ceiling for the Enhanced CPF Housing Grant, so it gets no EHG. Resale buyers still get the CPF Housing Grant ($80,000 for a 4-room or smaller flat). Grants total $80,000.
At $840,000, the monthly instalment is about $2,858, 28.6% of income, comfortably under the 30.0% MSR cap. Most households pay this from CPF OA rather than cash, which keeps take-home pay intact but means those OA contributions go to the flat instead of building retirement savings.
Understand the assumptions
Frequently Asked Questions
Is there an income ceiling for the CPF Housing Grant on resale flats?+
Yes, $14,000 for families. At $10,000 this household loses the EHG but still gets the CPF Housing Grant, which is why resale can be better value than BTO at this income.
Can we buy a resale flat above $14,000?+
Yes, resale flats have no purchase income ceiling, but above $14,000 you need a bank loan and lose the CPF Housing Grant.