Under the mortgage financing policy, HDB provides concessionary interest rate housing loans to eligible flat buyers, subject to credit assessment and housing loan criteria. For replacement flats selected before 19 Jul 2005, the loan ceiling is capped at 80% of the flat's purchase price. For replacement flats selected on or after 19 Jul 2005, the loan ceiling is capped at 90% of the flat's purchase price. The maximum loan quantum, subject to the prevailing loan ceiling, is to be determined from:
Please also see Other Information
The maximum loan repayment period is 65 years less the applicant's age, or 30 years, whichever is shorter. If there is more than one applicant for the flat, the age of the youngest applicant will be used to determine the maximum loan repayment period.
Maximum Repayment Period = 65 years - Youngest applicant's age (as at last birthday) or 30 years, whichever is shorter.
Monthly Instalment
The maximum loan quantum is capped at 40% of the gross monthly household income. The gross monthly household income is the combined income of all applicants and all occupiers who opt to be included in the credit assessment
Monthly instalment = 40% x Gross monthly household income
For credit assessment, the income of all applicants will be used in the computation of loan quantum. The inclusion of the occupiers' income in the computation of the loan quantum is optional. However, all the applicants and occupiers whose income has been used in the computation of loan will not be allowed, within 30 months after taking possession of the flat, to apply for another mortgage loan from HDB.
Prevailing Interest Rate
The concessionary interest rate is pegged at 0.1% point above the CPF Ordinary Account interest rate. The rate is revised quarterly, in January, April, July and October each year, in line with the revision in the CPF interest rate.
Other Information
Flat buyers may use their CPF savings and/ or cash to service the monthly instalment of the housing loan. the monthly instalment is payable in advance on the first day of each month. Interest will be charged on late payment.
Flat buyers paying the monthly loan instalments partially or fully by cash are required to pay the instalments through GIRO. The duly completed and signed GIRO form must be submitted before a housing loan is granted by HDB.
You may also refer to the web page on Home Financing for more details on obtaining a mortgage loan from HDB for the purchase of your replacement flat.