How Much HDB BTO Flat Can You Afford Earning $6,000 a Month?

A first-timer family household earning $6,000 a month combined. With $40,000 in CPF OA and $20,000 in cash, the household can afford a BTO flat priced up to about $514,578 on a 25-year HDB loan.

The loan is what sets the budget. The Mortgage Servicing Ratio caps the instalment at 30.0% of income, which allows a monthly instalment of up to $1,800. HDB sizes its loan at a 3.0% floor rate, although it charges 2.6%, so over 25 years that supports a loan of $379,578. The household's $135,000 of CPF, cash and grants covers the rest, for a flat of up to $514,578. That is more than the 25.0% minimum down payment, so each extra $10,000 of savings still raises the budget by $10,000, but the budget uses every dollar, leaving nothing for stamp duty, legal fees or renovation.

As first-timers on $6,000, the household qualifies for an Enhanced CPF Housing Grant of $75,000. The grant falls by $5,000 for each $500 of extra monthly income and stops above $9,000. HDB assesses income as the average over the 12 months before you apply, so a recent raise or bonus can move the household into a lower grant tier. Grants total $75,000.

At $514,578, the $379,578 loan costs about $1,722 a month, 28.7% of income, under the 30.0% MSR cap because the loan was sized at 3.0% but is charged at 2.6%. 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.