Should I take an HDB loan or a bank loan?
Both HDB and bank loans now cap at 75% loan-to-value, so your minimum downpayment is 25% either way. The key difference is cash: an HDB loan can be paid entirely from CPF, while a bank loan requires at least 5% of the price in cash. For an HDB flat, your repayments must also stay within the 30% Mortgage Servicing Ratio.
The full rules
HDB loan vs bank loan — the rules
| Feature | HDB loan | Bank loan (first loan) |
| Maximum loan-to-value | 75% | 75% |
| Minimum downpayment | 25% | 25% |
| Cash portion of downpayment | May use CPF fully | At least 5% in cash |
The HDB loan-to-value limit was reduced from 80% to 75% on 20 August 2024, bringing it in line with bank loans.
Debt limits that apply
| Limit | Cap | Applies to |
| Mortgage Servicing Ratio (MSR) | 30% of gross monthly income | HDB flats and Executive Condominiums |
| Total Debt Servicing Ratio (TDSR) | 55% of gross monthly income | All property loans from financial institutions |
For an HDB flat, MSR and TDSR both apply, and the 30% MSR is usually the tighter constraint.
To confirm which loan you qualify for and your eligibility conditions, check with HDB.
Worked example
Worked example
Say you are buying a flat priced at $500,000 as your first home loan.
| Item | HDB loan | Bank loan |
| Maximum loan (75% LTV) | $375,000 | $375,000 |
| Minimum downpayment (25%) | $125,000 | $125,000 |
| Minimum cash required | $0 (CPF allowed) | $25,000 (5% of price) |
| Remaining downpayment | Up to $125,000 from CPF | Up to $100,000 from CPF |
In both cases you borrow up to $375,000 and put down $125,000. The difference is that the bank loan needs at least $25,000 of that in cash, while the HDB loan can be covered entirely from your CPF.
What this means for you
Low on cash savings
If most of your savings sit in CPF rather than cash, an HDB loan helps — you can fund the full 25% downpayment from CPF, with no 5% cash requirement.
Buying an HDB flat
Whichever loan you pick, your monthly repayments must stay within the 30% Mortgage Servicing Ratio, and within the 55% Total Debt Servicing Ratio. Keep other debts low so you don't breach these limits.
Comparing total cost
Both routes cap at 75% loan-to-value and a 25% downpayment. Compare interest rates and terms directly, and confirm your eligibility for an HDB loan with HDB before deciding.
Related questions
How much can I borrow with either loan?
For a first housing loan, both HDB and bank loans cap at 75% of the property price or value. That means a minimum downpayment of 25% in both cases.
Can I pay the downpayment entirely with CPF?
With an HDB loan, yes — the 25% downpayment may be paid fully from CPF. A bank loan requires at least 5% of the price in cash, with the rest payable from CPF.
What is the Mortgage Servicing Ratio?
The MSR caps your monthly property loan repayments at 30% of gross monthly income. It applies to HDB flats and Executive Condominiums, alongside the TDSR.
Does TDSR apply to HDB loans?
The 55% Total Debt Servicing Ratio applies to all property loans from financial institutions. For HDB flats, both the MSR and TDSR apply, and the 30% MSR is usually the tighter limit.
More answers: Can I buy an EC while owning an HDB flat? · Who can buy an Executive Condominium? · What salary do I need to buy a 1 million dollar condo? · What salary do I need to buy a 1.5 million dollar condo?
Sources: HDB / MAS — loan-to-value limits · MAS — Mortgage Servicing Ratio · MAS — Total Debt Servicing Ratio · Last verified 2026-10-19