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

A first-timer family earning $6,000 a month combined, looking at a 4-room resale flat instead of waiting for a BTO. With $40,000 in CPF OA and $20,000 in cash, the household can afford a resale flat priced up to about $529,019 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. At 2.6% over 25 years, that supports a loan of $396,765, which at 75.0% loan-to-value covers a flat of $529,019. The household's $215,000 of CPF, cash and grants is more than the $132,255 down payment needs, so saving more would not raise the budget; only a higher income would.

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. Resale buyers also get the CPF Housing Grant ($80,000 for a 4-room or smaller flat). Grants total $155,000.

At $529,019, the monthly instalment is about $1,800, 30.0% of income, right at the 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.