How Much HDB Resale Flat Can You Afford Earning $9,000 a Month?

A first-timer family earning $9,000 a month combined, with a $500 car or personal loan, buying a 5-room resale flat near family with a bank loan. With $60,000 in CPF OA, $40,000 in cash, and $500 a month of other debt repayments, the household can afford a resale flat priced up to about $780,545 on a 30-year bank 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 $2,700. At the 4.0% stress-test rate banks must use (not the rate you would actually pay), over 30 years that supports a loan of $565,545. The household's $215,000 of CPF, cash and grants covers the rest, for a flat of up to $780,545. 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 $9,000, the household qualifies for an Enhanced CPF Housing Grant of $45,000. 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 ($50,000 for a 5-room or larger flat) and a $20,000 Proximity Housing Grant for living near parents or children. Grants total $115,000.

At $780,545, the $565,545 loan costs about $2,700 a month at the stress-test rate (less at a typical bank rate), 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.