How much downpayment do I need for an HDB flat?
For a first HDB flat you need a minimum 25% downpayment, because the loan-to-value limit is 75% (effective 20 August 2024) for both an HDB loan and a first bank loan. With an HDB loan you may pay the full 25% from CPF; with a bank loan at least 5% must be in cash and the rest can be CPF.
The full rules
HDB Flat Downpayment Rules
Your downpayment is whatever the loan does not cover. The loan cap is set by the loan-to-value (LTV) limit.
| Loan type | Max LTV | Minimum downpayment | Cash component |
| HDB loan (first) | 75% | 25% | May be paid fully from CPF |
| Bank loan (first) | 75% | 25% | At least 5% in cash; remainder CPF/cash |
| Bank loan (second) | 45% | 55% | Higher cash rules apply |
| Bank loan (third+) | 35% | 65% | Higher cash rules apply |
The HDB loan LTV was cut from 80% to 75% on 20 August 2024, aligning it with bank loans.
Mortgage Servicing Ratio (MSR)
| Rule | Limit | Applies to |
| MSR | 30% of gross monthly income | HDB flats and Executive Condominiums |
MSR applies together with TDSR and is usually the binding constraint for HDB buyers. Second and third bank-loan figures assume a 30-year tenure and age ≤65 at maturity.
Worked example
Worked Example
Suppose you are buying your first HDB flat priced at $500,000.
| Item | Calculation | Amount |
| Loan (75% LTV) | 75% × $500,000 | $375,000 |
| Downpayment (25%) | 25% × $500,000 | $125,000 |
If you take an HDB loan: the full $125,000 downpayment may be paid from CPF.
If you take a bank loan: at least 5% (that is $25,000) must be in cash; the remaining $100,000 can come from CPF or cash.
What this means for you
First-time buyer using an HDB loan
You pay 25% down and can use CPF for the entire amount — no minimum cash rule for an HDB loan.
First-time buyer using a bank loan
You still pay 25% down, but at least 5% must be in cash. The remaining 20 percentage points can be CPF or cash.
Buyer with an existing housing loan
A second bank loan caps LTV at 45% (55% down) and a third or more at 35% (65% down), assuming a 30-year tenure and age ≤65 at maturity.
Related questions
What is the minimum downpayment for a first HDB flat?
25% of the purchase price, because both HDB and first bank loans are capped at 75% loan-to-value from 20 August 2024.
Can I pay the whole downpayment with CPF?
With an HDB loan you may use CPF for the full 25%. With a bank loan, at least 5% must be in cash; the rest can be CPF.
Why did the HDB loan downpayment change?
The HDB loan LTV was cut from 80% to 75% on 20 August 2024, aligning it with bank loans. This raised the minimum downpayment to 25%.
What is the MSR and how does it affect me?
The Mortgage Servicing Ratio caps your housing loan repayment at 30% of gross monthly income for HDB flats and ECs. It applies with TDSR and is usually the binding limit.
Is the downpayment higher for a second property loan?
Yes. A second bank loan caps LTV at 45%, so 55% down; a third or more caps at 35%, so 65% down (30-year tenure, age ≤65 at maturity).
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 · Last verified 2026-09-05